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8 min read |
Anyone without a strong stomach shouldn’t try to scale a SaaS company. Premature scaling is cited as the cause of failure for 70% of businesses (SaaS included) globally. Each SaaS company, whether self-funded or supported by venture capital, has the same overarching goal: sustained expansion. The “instant success method” is a fallacy, and there is no magic bullet for growing a SaaS company. But before we get into it, let’s briefly examine what are 7 SaaS Growth Strategies to scale your business quickly.
You will be sorely disappointed if you go out on this path expecting fast gratification. The process of scaling is tedious and error-prone. But if you prepare well and use standard procedures, you should perform well. This article will discuss seven methods to expand your SaaS company.
How Does One Go About Scaling a SaaS Product?
To scale a firm, you must provide the conditions necessary for its expansion.
Therefore, in a software as a service (SaaS) enterprise, “scalability” is the capacity for unrestricted expansion. The standard seven-step SaaS scaling procedure goes as follows:
The Software Engineering Process, The Product Design Phase, The Marketing Phase, The Team Construction Phase, The Onboarding Process
For the sake of brevity, let’s go through these methods.
1. Programming and Coding
Software development is the most crucial factor in growing a SaaS business. Ask yourself these things before you start coding:
To whom do I cater?
When they feel pain, what do they do?
What issues does this product intend to address?
At this point in the software development process, the focus shifts to growing the product itself. Finding out the answers to these questions can help you better understand the product’s intended use. You’ll have a far better idea of where you’re going and how to get there.
2. Group Formation
Building a strong workforce is essential for every company that wants to expand its operations. If you’re in the SaaS industry, your first hiring should be a product manager.
A product manager has a mental picture of all the features you want your product to have. This expert takes the given requirements and turns them into a working product. After hiring a product manager, consider expanding your team with designers, engineers, and quality assurance analysts.
3. Designing Products
The design phase precedes the software development process. More work goes into this phase, which consists of four parts:
Research (understanding the client demands) (understanding the customer needs)
Review of Software/Website (to improve UX)
Prototyping \sDeployment
Researching consumer wants and problems is the first step in the design process. After that, designers create mockups of the user interface in programs like Figma.
Check the steps to building great websites here.
Top SaaS growth strategies
Now that you understand the components of developing a SaaS firm let’s talk about some tactics for expanding your offering. Both business-to-business and business-to-consumer SaaS businesses may benefit from the following techniques.
1. Prioritize the Happiness of Your Clients
To successfully grow your SaaS company, you must ensure the happiness of your current and prospective clientele.
A high percentage of customer turnover is typical for companies that need to focus on the quality of their customer experience. According to research by Esteban Kolsky, 13% of dissatisfied consumers tell 15 or more individuals about their negative experiences.
A high churn rate is the last thing you want while trying to grow your SaaS company. As a result, the goal of expansion will be defeated, and the company’s reputation will suffer.
If you can satisfy your consumers, they will promote your business. Research shows that 72 percent of happy consumers tell others about their excellent experiences. This is an excellent strategy for attracting new customers and retaining existing ones.
You can check our previous post on how to create a dentistry website and gain clients.
Make sure you do the following to increase happy customers:
- Promote consumer loyalty by delivering superior goods.
- Create meaningful ties with your clientele.
- Provide prompt responses to consumer inquiries.
- Always be available for your clients.
- Create a plan to ensure the satisfaction of your customers.
2. Prioritize Critical Sales KPIs
Keeping tabs on essential sales data is a great approach to ensure your business is headed in the right direction. Your company’s expansion plans could only pan out as planned if you know how to read critical data and interpret their meaning.
Key performance indicators include:
- Exit rate
- The Price of Acquiring a New Client
- A lifetime worth of a customer
- Activation frequency
- Revenue that is expected to be received regularly, either monthly or annually
- Margin and growth rates
- Rates of transformation
There’s no lack of data points you may collect as the head of a SaaS company, but these will impact your ability to expand.
If you are keen on software, you might want to know the top ERP software for schools.
3. Transform Your Approach To Sales
To grow your SaaS company, you should focus first on marketing. If you want more sales, you need to improve the whole sales process.
It’s recommended to increase both inbound and outbound strategies.
Put more money into Google, Facebook, Instagram, and YouTube advertisements if successful. Spend money on outbound marketing, including trade exhibitions, print media, television advertising, etc.
4. Finetune How you choose to set prices
Scaling your SaaS company successfully requires careful consideration of pricing.
Even if your product is excellent, it will only sell if it is priced a little. Also, if you sell it at a reasonable price, it might hurt your profits.
Where exactly is the optimal level?
You’ll need to consider the market, your expenses, and the perceived worth of your product to customers when determining appropriate pricing.
Try out several price tiers to find the optimal one for your clientele. There is a need for A/B testing in this case. Instead of raising prices to expand your company, you should focus on improving your product and setting fair prices.
5. Maximize the Potential of Your Group
When expanding your business, the quality of the people you recruit is crucial.
Recruit experts who can see the big picture and help you achieve your goals. Making choices about the product’s future development will be easier with the proper personnel on board.
As a result, you need to find and employ individuals who possess the knowledge and disposition essential to the success of your organization. The correct group will help you refine your product, develop ideas for its future, and see your project through from the beginning of manufacturing to market maturity.
6. Implement a Multi-Channel Detection Strategy
While SEO can bring in new visitors and sales, it may use other methods.
SaaS businesses that want to grow must use various promotional strategies. Use a system that gathers data from several channels.
Look for other acquisition strategies that provide results in addition to search engine optimization. You may use sponsored advertisements and social media influencers to promote your product. Email marketing, web marketing, content marketing, direct sales, and co-branding are some more options.
7. Promote Product Use
To have a successful SaaS company, new users may quickly begin using your product.
Customers are less likely to utilize and less likely to promote your product if they are unsure of how to use it or how it will help them.
It would be best if you tried to make it as simple as possible to adopt a child. That’s utilizing the product as well as subscribing to it. Complex product adoption procedures discourage customer loyalty and word-of-mouth promotion. Therefore you should do everything you can to prevent them.
Summing Up
Constant innovation and adaptation characterize the software as a service market. If you’re a B2B SaaS company, your survival depends on your ability to constantly innovate and enhance your offering or risk falling behind the competition. Customers of software as a service (SaaS) tend to have high standards and are continually on the lookout for better alternatives. If you enjoyed this article, you might be interested to read Ways to grow your e-commerce business.