Software as a service (SaaS) is one heck of a booming industry. In fact, Gartner projects that by the end of this year, the industry will bring in a whopping $171.9 billion in global sales. Yet, despite its success, SaaS remains a relatively confusing topic for the general public — your customers included. How you educate them on the subject of SaaS can make all the difference in gaining their trust, winning their consideration, and closing more deals. But where do you start?
Start by making SaaS more approachable
Your customers have probably had it up to their ears with techy buzzwords and explanations. And despite how fond (or unfond) you are of the SaaS acronym, there’s a chance that your customers don’t entirely understand what it means. So before you dive into the details of SaaS, get a pulse on where they’re at in their understanding.
If customers seem a little fuzzy, think of a typical SaaS example that they might already be familiar with from their everyday lives. Microsoft Office, QuickBooks, Netflix and likely even their point of sale (POS) system are all SaaS solutions (or at least offer a SaaS option). By identifying an example your buyers are already comfortable with, you can eliminate the mystique surrounding SaaS, making your role as SaaS-educator that much easier.
Connect the dots between SaaS and foodservice equipment
There are a lot of SaaS definitions floating around the internet, but the majority of these explanations don’t perfectly align with how SaaS is leveraged within the foodservice equipment space.
Yes, the basics hold true. SaaS is a subscription model where users pay a fee (usually monthly) to gain access to software online. The software vendor hosts the software on their end, either in the cloud or on a vendor-owned or -rented server. They also handle all ongoing software updates, enhancements and support. In turn, the subscriber has a relatively hands-off role and is always up and running on the most recent version of the software.
With that said, SaaS works a little differently in the foodservice equipment world. All of the SaaS fundamentals remain the same, but the subscriber plays a lesser role. With Netflix, QuickBooks and the majority of the SaaS products your customers are probably familiar with, the subscriber is the primary end-user. That’s not the case with foodservice equipment. While the subscriber often has access to some kind of analytics, reporting or administrator dashboard, the equipment is considered the primary “user.”
Take the Hatco MPP Pickup Pod™ for example. If you sell or lease this product, buyers are required to pay a monthly subscription, or SaaS fee. Through this subscription, the cloud-hosted software is supplied to the Pickup Pod over the internet. And when a software update is ready, the software vendor pushes it directly to the internet-connected unit. As a result, the Pickup Pod (which also utilizes some software that lives on the unit itself) can perform its full range of functionality, providing customers and delivery people with a touch-free way to access their to-go orders via a QR code or SMS link that opens the designated cubbie housing their food.
Communicate the benefits of SaaS
Typically, a buyer will evaluate a foodservice equipment purchase based on a lot of different criteria. Will the equipment solve a pain point? Does it have the capabilities and features they want? Is the price point within budget? How reputable is the manufacturer? Whether the software is delivered via a SaaS model or not is more of a secondary consideration. With that said, there are a number of benefits that accompany SaaS-powered foodservice equipment. Here are a few that you should be sure to highlight:
1. Labor savings
Are your customers feeling the labor crunch these days? One of the most attractive benefits of SaaS-powered equipment is that the software vendor takes on a lot of the heavy lifting. When a software update is ready, the vendor pushes it live, and just like that, the equipment is operating on the most recent software version — no downloading and uploading required by the operator. This is particularly attractive for operations that simply don’t have enough staff or time to make the necessary software updates on their equipment or for establishments with multiple locations or units to keep up to date.
2. Integrations
SaaS-powered equipment also opens the door for integrations with other tools, whether that’s with a point of sale (POS) system, delivery service app or other software. For example, many buyers love that the Hatco Pickup Pod integrates seamlessly with Toast and Square POS systems. And while integrations like these aren’t required with the Pickup Pod, having the option gives operators the opportunity to get their different software solutions “talking” and creating greater efficiencies across their operation.
3. Data analytics
SaaS-powered foodservice equipment is usually database driven and can track valuable insights, which operators can then use to make smarter decisions. Again, let’s go back to the Hatco Pickup Pod. With this equipment solution, operators can access reports containing different trend data, such as pickup volume at different time periods throughout the day. With this information, operators can make more strategic moves around everything from staffing to operational workflows, inventory management and more.
4. Enhanced capabilities
SaaS requires an internet connection, which naturally gives way to a whole world of internet-powered capabilities — including the ability to transform a foodservice equipment unit into an internet of things (IoT) device. Just like the Apple Watch on your customer’s wrist or the smart thermostat in their home, a lot of SaaS-powered foodservice equipment is also equipped with sensors and internal computer chips that (along with its internet connection and various software), allow it to do some pretty “smart” IoT stuff like collect information, send it, and even act on it.
Last but not least, don’t forget to be upfront about SaaS fees
We’ve talked about how SaaS requires the operator to pay an ongoing subscription cost. When you’re educating your customers on SaaS and SaaS-powered equipment, don’t glaze over this part. A new car, a free trip to Bali, an unexpected wave from a crush — these are all nice surprises. Being blindsided by an ongoing subscription cost? Not so much. If you’re clear about the costs, your customers will appreciate the transparency. Furthermore, sharing this information will also give you an opportunity to talk about all the great stuff these fees go toward, including cloud connectivity, data analytics, user interface, maintenance and testing, software improvements, third-party dependencies like cellular or network connectivity, and so much more!
Looking for more Hatco resources?
Whether you’re sharing information on the latest equipment available, finding solutions to operator challenges, or simply supporting your clients in their educational journey — you are an invaluable resource to them. Keep fueling that expertise! For additional resources and support, be sure to check out the Hatco blog and our growing resource library. We too are here to help.
