7 Essential tips to grow your SaaS Business

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Introduction

SaaS is an industry that has skyrocketed in the last few years. According to a report by Research and Markets, the global SaaS market was worth over $48.2 billion in 2016 and it is expected to reach nearly $145.5 billion by 2021. Building a sustainable SaaS business requires a great deal of research into the market and its competitors’ products/services before you even start selling anything. It’s crucial to find out which features people want most from your product, what their pain points are, how likely they are to recommend it to others (and why), etc., all before creating anything at all.

Businesses that use software-as-a-service (SaaS) models have been thriving across the globe for quite some time now. It allows small and medium-sized businesses to get all the necessary tools for their businesses at a very affordable price. It has made it possible for startups to survive and thrive in the world of technology. The secret behind this success lies in three important factors: 

1) SaaS requires a less up-front investment, 

2) the service is delivered as a subscription instead of buying products outright, 

3) customers are not tied down to long contracts.

This model offers an advantage over traditional software companies as it allows users to access more data and functions without having to pay for every single line of code or feature that they require. However, building a successful SaaS business requires more than just understanding what the model entails; you also need to be aware of what goes into creating a successful one!

Tips to Grow Your SaaS Business

When you’re growing a SaaS business, it is very important to know your target audience and the type of product that they need. Here are 7 things that you should keep in mind when you’re building your product.

  1. Sell the Problem

SaaS companies need to sell their value proposition, not the product. The product is secondary and you have to be able to articulate why your customers should buy from you instead of your competitors.

Companies selling products tend to focus on features, benefits, and functionality as opposed to a single problem that they solve for their customers. But it’s not about what your company can do for them; it’s about how they feel when they use your product or service. People are buying because of the problems that they face, so understand these problems and make sure your marketing strategy is built on showcasing the pain of clients and how your company can help them solve that problem.

To make this work, you need to think of how your product will solve that problem and what value it provides. The only way to get a customer to buy is by convincing them that it solves their problem better than any other solution on the market

  1. Improve your Customer Acquisition

Narrow down your customer acquisition efforts and ensure that you have a good understanding of your target audience. It is important to understand who your potential customers are and how they use the product or service that you offer. This will help guide your decision on where to focus to maximize the number of sales made with each customer acquisition effort.

Build a User Persona before finalizing on your target audience

  • Ask yourself who this product will be suitable for based on age, location, gender, interests, pain points, occupation, and much more.
  • Study your competitors, look at what audience they are targeting, find what keywords they use for paid and organic marketing, you can do a detailed analysis of your competitor using various tools online. 
  • Speak to people from similar industries, attend many workshops, forums, and events, organize polls and surveys. This will narrow your target audience.
  • Analyze your audience pattern in your website. Using analytics tools like google to find out which content people are interested in, what pages they visit often, and build your content on it.

There are several methods you can use to get more leads for your business, from generating traffic through social media advertising campaigns, offering discounts on software as a service ( SaaS ) subscriptions, and even making sure you have a beautiful website with informative blogs.

Focus on acquiring customers who are in a similar stage of growth as you are. It’s also important that you don’t just look at one or two metrics when assessing potential new customers. Instead, ask yourself how they would benefit from using your product and whether it will meet their needs.

  1. Build a referral Program

An effective referral program built into your SaaS Business allows for a higher conversion rate. When the customers who have used your product or service in the past refer to their friends and family, you can get some free users from them. This will help in building up your user base and boost up your revenues.

There are many benefits of running an effective referral program: 

  1. Increased brand awareness 
  2. Improved reputation 
  3. Increase revenue 
  4. Credibility boost 
  5. Customer retention 
  6. Loyalty 
  7. Additional leads

The best way to build a referral program is to ask your customers for feedback. A survey post asking what they like about your product will give you some really valuable information that you can use to improve the product and make it more appealing to new users.

Once you have this information, you can create an email campaign where people are encouraged to leave their name and email address in exchange for an incentive of $5-$20 depending on the size of your business 

Include a link at the end of each email with instructions on how to claim their reward! This gives them a sense of value because they know exactly what they’re getting out of it, but also makes sure that everyone gets rewarded!

  1. Experiment with your Pricing

Pricing your product correctly can be the difference between success and failure. Many businesses try to price their products at a higher rate than they need to, or are afraid of losing money on their product as it is too cheap. If you’re in this situation, you should take note that pricing based on what you need to make is always better than pricing is based on what you think people will pay for it.

When setting up new SaaS subscriptions, it’s important to consider what features are included in the package as well as which ones aren’t required by all customers to sell your product or service at all levels – standard, pro, or enterprise-level subscriptions require some types of features while premium or enterprise-level only requires certain types of features. 

The best way to set your pricing is to test out different prices for different products and services until you find one that attracts more buyers than others. Then keep track of how many people buy from each price point and use this data to adjust future prices accordingly.

  1. Boost your Marketing Efforts

Be prepared to spend more time marketing your SaaS product. The first year of a SaaS business is crucial for growing it into a successful venture, but you may need to increase your marketing efforts and outsource certain tasks that can be done better by someone else.

SaaS businesses are often quite complex, so it can be difficult to tell which marketing channels and tactics are effective. The number of available marketing channels is growing at a rapid pace, making it even more difficult. 

When you’re just starting, there’s no such thing as an “ideal” amount of money you should spend on your marketing efforts. Your goal is simply to build awareness around your brand and increase your reach while staying within budget – two things that will ultimately lead to more sales!

The goal with marketing is to create value for your customers while simultaneously generating leads that you can turn into paying customers in the future. Marketing is the lifeblood of any SaaS business, and there are many ways to do it. You can use a variety of channels, including email marketing, social media, paid advertising, content marketing, and more.

Social media platforms help you get free traffic from all over the world and they allow you to interact with people interested in your products or services. Social media sites help increase brand awareness by allowing people who may not know about your company to see what you do and learn more about it!

Blogging is another effective way of getting free traffic and increasing brand awareness because this gives potential customers a chance to read about what you do, which helps them make their own decision whether they want to buy from you or not! Your SaaS business should have a good mix of paid and free products/services to provide value to customers across different stages of their journey.

  1. Target international market

SaaS businesses are growing rapidly in the international markets, and it is not just for technology companies. Many non-tech SaaS companies have successfully grown internationally.

When you’re an early-stage startup, you can focus on the US market first. But it is not that easy to conquer the international markets if you don’t know how they work. You will have to put in a lot of effort and time to figure out which market works for your product and learn about their requirements.

Focus on the international markets from day one! If you want to be successful in any business, you must make sure your company has a good understanding of its global presence as soon as possible so that all business decisions are made based on facts rather than guesses or assumptions about what could happen in the future. 

The best way to do this is by starting your marketing plan as soon as possible (and before launching your product). This will help you plan and ensure that all of your products are ready for launch at the same time across multiple countries so there aren’t delays due to compatibility issues or other unexpected problems when scaling up later on down the line.

  1. Plan on the need for a freemium model

A freemium model is a great way to start a SaaS business, but it must be done right. The best-case scenario for a freemium model is if the market you are targeting is extremely price-sensitive and ready to pay even $10 per month for your product. If you do not have this type of market, then stick with the traditional method of selling.

It’s important to consider the market you’re targeting before you decide to create a freemium model for your SaaS business. Some SaaS businesses have found that their target market doesn’t need a free version at all.

If you want to build a product with an easy-to-use interface and one that can easily be used by people who aren’t technically savvy, then creating a freemium model might not be right for you in the first place — especially if your company has limited resources or financial backing behind it!

Conclusion

Growing a new SaaS business is not an easy task; it would take a lot of time and effort for a new business to get noticed. But by understanding the market need and leveraging your product by solving the right problem, your company can turn into a great brand.

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