Dear SaaStr: How Do I Get Customers to Switch From a Competitor When There’s a Significant Migration Process?
Yeah, that’s the killer. Migration is the Achilles’ heel in stealing customers from an incumbent. Too many founders don’t fully get it. And 95%+ of sales execs don’t get it.
Even if your product is better, the pain of switching—templates, processes, integrations—can stop deals dead in their tracks. I’ve seen this over and over, and it’s why most SaaS vendors lose deals they could have won.
But the good news? The better you get at this, the more deals you’ll win.
Here’s what I’d do:
1. Own the Migration Process
Don’t leave it to the customer. Build migration tools, hire a dedicated migration team, or partner with experts who can handle it for them. Even if it costs you $20K or more per deal, it’s worth it. Think about the lifetime value of a customer—if they stay for 5-10 years, that upfront cost is nothing.
And be careful not to just dump the customer on a third party. That doesn’t solve their problem. Not fully. Even if you use a partner to handle a migration, own the whole process yourself, in house.
2. Be Very Careful Before Asking the Customer To Pay Any Migration Costs
Why should they? Put youself in the customer’s shoes. Especially during a potential vendor switch.
3. Automate as Much as Possible:
Everyone can do more here. Everyone.
Can you build tools to import their templates, workflows, and data automatically? Even if it’s not perfect, getting 90% of the way there will make a huge difference. Customers don’t expect perfection, but they do expect you to make it easier than doing it themselves.
4. Offer Buy-Out Deals:
If they’re locked into a multi-year contract with the incumbent, offer to cover the remaining term. Zoom did this to steal customers from WebEx, and it worked brilliantly. It removes a huge barrier to switching and shows you’re serious about winning their business.
5. Showcase Success Stories:
Find a customer who’s already made the switch and is thriving. Document their migration process, the challenges they faced, and how you helped them overcome those challenges. Use this as proof that switching to your product is worth it.
6. Invest in Change Management:
Migration isn’t just about moving data—it’s about helping customers adapt to a new way of working. Offer training, onboarding, and ongoing support to make the transition as smooth as possible. The easier you make it for them, the more likely they are to switch [7][8].
7. Be Honest About the Pain: Don’t sugarcoat it or pretend it’s not real.
Acknowledge that migration is hard, but show them you’ve thought through every step and have a plan to make it as painless as possible. Customers appreciate honesty, especially when it’s paired with a solution.
8. Don’t Make Customers Pay Twice
Don’t make customers switching to you pay for the old vendor and you at the same time, even for a short period. However you do it, from not charging for an overlap period, to not charing to Go Live, to a buy-out contract —- don’t make the customer pay for your app and the one they are switching from at the same time.
9. Again, Make it Effortless for the Customer
Review every step of the process, from pricing to soft costs to go live time. What can you do to make it effortless?
If you nail migration, you’ll not only win deals—you’ll win loyalty.
Customers will remember that you went the extra mile to make their lives easier, and they’ll stick with you for the long haul.
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