SaaS Adoption Blockers in Japan

Introduction

There’s no denying that SaaS adoption in Japan is lagging. Part of the issue is supply: There aren’t as many SaaS products available in Japan that are usable (not localized) for the Japanese end-user. Another aspect of the issue is the awareness and urgency of implementation technology. A big part of the issue is that even if companies want to implement SaaS products, they don’t know what to implement and need support with and after the implementation.

Don’t Know Which Products to Choose

A big problem that Japanese buyers face is not knowing which products to implement. They may be aware of the problem they’re facing but don’t know which product would be best to fix their issue. These buyers are usually not actively looking for the most innovative technologies, so don’t know what products are available in the market to address their problems. The 2022 version of White Papers on Small and Medium Enterprises and Small Enterprises showed that the number four reason that blocks considering SaaS adoption is not knowing which product is best for their business.

A survey targeting companies that help with SaaS implementation asked “What are the most common inquiries?” The number one inquiry is about tool selection.

It is abundantly clear that companies need support from the very first step: Selecting the right tool for their business. Other common inquiries are implementation and post-implementation support.

Implementation and Post-Implementation Support

Even if a company is set on implementing a SaaS product, the next barrier awaits them. The actual implementation is a blocker, especially if the product requires technical implementation. The more complex the implementation, the more resistance the buyers feel. They may consider the implementation is not worth the time commitment and financial investment. Looking at the previous chart, the number two most common inquiry is on implementation and post-implementation support.

Training and Onboarding

Post-implementation support in the forms of training and onboarding is important for strong adoption of the SaaS product being implemented. Though the SaaS provider may offer some level of support, this may not be enough.

A survey conducted by Addish, a customer support and success outsourcing service, showed that there is implementation and post-implementation services would help make better use of their SaaS products.

The demand for post-implementation services is real and companies are willing to pay for it. The research that Addish conducted showed that almost half of the companies surveyed are willing to pay 300k to 500k JPY per month for additional support.

Conclusion

Bringing awareness to SaaS is the first blocker. Proper implementation support is the next issue that needs to be addressed. Adoption comes after and there is a real demand for post-implementation support in the form of training and onboarding. There’s an opportunity for SaaS companies entering Japan by providing high-touch support. If you are considering entering the Japanese market and would like to explore an entry plan, book a free consultation here.