Running and growing a SaaS business isn’t easy, thanks to the saturated fast-speed market, high competition and changing consumer demand. To win and grow your business, you must follow a few things we will describe here, implementing those that suit your vision and current business state.
The Software as a service, or SaaS, Market Report for the year 2020 stated that the domain is suggested to scale at a CAGR of 13.1%. Therefore, it is not surprising that SaaS businesses are growing in popularity, and the whole industry is experiencing many changes yearly to provide quality services. You can constantly stay ahead of the curve by knowing tips from experts that help you to grow your business effectively.
Highlight the Issue & Solve It
It is a common thing when the market doesn’t know about the existing problem. So why don’t you highlight this issue and sell them the solution? Once they know the problem and its damage, you will promote your services as an answer. This allows you to market your product’s benefits and qualities effortlessly without being pushy.
Many SaaS companies are starting to take this approach, so you will need to do extensive market research to identify what real problems exist before starting to work this way. It is also best to enter communities so you will be able to get a vast target audience that will later look for a proper solution to the problem you highlighted.
Benefit from Technologies
The tech market offers various solutions for businesses in different fields. There are apps for tracking conversions, managing the workflow, organising efficient communication and making SaaS contract negotiation easier and more accurate.
Integrate payment systems into your business, such as plaid pricing. This will help improve financial processes for you and your clients. It is vital for organisations today to make the working process easier and faster using technologies and software tools.
Determine Target Market Needs
Regardless of the size of your company, it is essential to refocus on your clients’ needs continually. Although you did market research at the first stages of business development, you should always update data. That is because market fluctuations and changes in the world can alter target audience needs. Therefore, it is vital to update your strategies too.
Alongside determining the client’s current needs, you should also investigate the necessary changes to improve the customer experience. This can also be done through market research since it will show you what experience your customers are looking for and what you can steal from strong competitors.
Record Your Churn Rates and CAC
To boost your SaaS business growth, it is also recommended managing your resources based on your operating expenditures. Compare it to the number of customers that are paying for your services and products. Monitoring your turnover rate and CAC is crucial for success.
CAC is a short name for the Cost of Acquiring Customers. It helps companies to estimate their costs as they acquire and expand their user base. To get insights, you need to divide the total cost of client acquisition by the number of conversions within the specified timeline. This data will help forecast your business success rate and manage your costs.
Experiment with Pricing
The pricing should evolve as the company grows. It is recommended to test your copy around the pricing. You will either find out that the price is right though it’s not attached to the proper value. You will understand customers’ needs and perceptions of your product or services only by charging money and performing split testing at various pricing levels. You can use many split testing tools like Optimizely.
Offer a Transparent & Easy-to-Scale Pricing Model
The lion’s share of modern SaaS businesses fails to acquire clients just because their pricing is too complex. Modern customers tend to have small short spans, and they simply don’t want to spend their time deciphering all options in a messy and uncomfortable presentation. Therefore, make sure you are clear. It is recommended to ask your friends or a focus group to take a glance at your pricing page and identify whether it is user-friendly or not.
Listen to Those Who Pay
Most SaaS businesses prefer to ignore user feedback. While it may be an option with one-time customers that have left your company, feedback provided by your loyal clients is essential. All people have different views on businesses, so you should consider what they have to say about your products, services, websites or even tech support.
Listening to customers that pay will not only boost their loyalty and trust but will also work as a free way to find poor spots in your business. Change, adapt or modify what is wrong and improve what is great so you can always offer the best user experience based on proven data.
Partner with Competitors
Although many SaaS companies feel negative about their competitors, reports show that partnership can be an effective way for those organisations to establish connections and get valuable insights. Yes, you are fighting for one spot, but they may have more knowledge in a specific sphere, or you may exchange referrals or even buy consultations from experts in their teams. Options are unlimited; just make sure that it is a worthy connection.
Develop Useful Content
One of the best ways to get marked in a competitive market is by bringing useful content. While some SaaS companies prefer not to invest in their content strategies, it can be a useful tool for those ready to invest. People like to learn something from the brand they trust, and they like companies that share useful information regarding their services and products. Write about what you know, solutions you offer, problems in the market and the industry you work in.
Wrapping Up
Growing a SaaS organisation requires faith in your product. However, it also involves staying ahead of competitors, checking market trends, high flexibility, and smart market positioning. The tips we mentioned above can help you win a spot in this market while staying proactive and collecting relevant feedback for better strategic decisions.
