What stops your prospect from switching from your competition

Your B2B SaaS product ticks all the four types of risks check box and you have a successful launch in the market.

but still, the sales cycle is getting delayed, leading to less deal conversion.

Can a hidden factor affect the buying journey, especially when the product is hugely data-driven or mission-critical in their day-to-day work?

Before we jump in, below are the four product risks as per the thought leader- Marty Cagan in the PM space

1. Value risk - Can users use it or buy it
2. Usability risk - Can users figure out how to use it
3. Feasibility risk - Can developers build it
4. Viability risk - Can multiple business functions support it

Switching Risk

Apart from the above, no one talks about the Switching risk from one tool to another tool.

This is critical, especially for products that have a long time to value. The one in which you derive value only after a long period of usage. Ex - ITSM, Employee scheduling, ERP.

In today's dynamic business landscape, switching or migrating from one software to another can significantly impact an organization's productivity and overall operational efficiency.

While the benefits of upgrading to newer, more advanced software are enticing, the process itself poses hidden risks that can disrupt service delivery if not carefully managed.

Understanding Hidden Risks in Software Switching and Migration

• Operational Disruption:
• Productivity Loss:
• Customer Service Interruptions:
• Data Integrity and Security Concerns:
• Financial Implications

For example: switching from one CRM to another CRM

• Data Migration Challenges: Operational Disruption and Learning Curve: Transitioning to a new CRM involves a learning curve for employees, which can temporarily impact productivity as users adjust to the new interface and processes Data cleansing and migration efforts can be time-consuming and resource-intensive.
• Integration Issues: Integrating the new CRM with existing systems and third-party applications may encounter compatibility issues, potentially disrupting business operations and requiring additional development effort.
• Potential Downtime and Service Disruptions: During the transition period, there may be downtime or service disruptions as the old CRM is phased out and the new one is implemented, affecting customer service and operational continuity.
• Cost and Resource Allocation: Implementing a new CRM involves costs associated with software licenses, implementation services, training, and ongoing support. Organizations need to allocate adequate resources and budget to ensure a successful transition.

How Product teams can contribute?

While you cannot solve all the risks related to switching, the product team can list and stack rank the top risks by working with Sales Teams at the account level especially those that involve larger deal sizes.

After listing the risk, list out the possible solutions either through a build or buy decision.

Either we delegate to 3rd party players who specialize in data migrations or delegate a team inside the organization to speed up the process.

The process can help the sales teams ensure the qualified leads for conversion if migration is being carried out by internal team members.

How Product & engineering teams can address this challenge?

It's all about having the right process and people

1. Planning Conduct comprehensive planning sessions to outline migration goals, timelines, and potential challenges. Define clear objectives and establish metrics for success.
2. Risk Assessment and Mitigation: Identify potential risks and develop mitigation strategies. This includes data backup plans, contingency measures for downtime, and addressing compatibility issues.
3. Testing and Validation: Perform extensive testing of the new software in a controlled environment. Validate data migration processes, functionality, and integration with existing systems to ensure seamless operation.
4. Creating a Sandbox environment can help in testing and simulating new scenarios.

Well, What is Sandbox Testing?

Sandboxing involves creating a replica of the production environment where the new software will eventually be deployed.

By using sandbox environments, organizations can identify and mitigate potential risks associated with data migration, software bugs, or integration issues before rolling out the software to production. This minimizes the impact of unforeseen issues on business operations.

5. Incremental Rollout: Consider an incremental rollout strategy, starting with less critical functions or departments. This allows for gradual adoption, feedback collection, and adjustment of processes as needed.

6. User Training and Support: Provide comprehensive training and support to users before, during, and after migration. Offer resources such as tutorials, workshops, and helpdesk support to facilitate smooth transition and minimize productivity loss.

7. Post-Migration Evaluation: Conduct a post-migration evaluation to assess performance against predefined metrics. Gather feedback from users and stakeholders to identify areas for improvement and ensure the new software meets organizational needs effectively.

Learn from mistakes

The messy migration of software, as observed in cases like Air India's crew scheduling app, underscores the importance of meticulous planning, testing, and communication in software transitions.

By learning from such incidents and implementing best practices, organizations can minimize disruption, protect their reputation, and achieve successful software migrations that enhance operational efficiency and customer satisfaction.