Success is the main reason anyone starts a business, especially in the SaaS industry. Making money is one milestone – growing a business is another. There are many reasons for growing a business, with some company leaders simply looking to sell up. If this sounds familiar, you should know that there are a series of metrics you need to track first, and then there are methods to increase your company’s value. Below, we will tell you how to expand your SaaS business through a series of tips.
Track Your Metrics
As mentioned above, you will need to understand your company’s revenue before fully understanding how to grow. To do this, you need to look into areas including churn, customer acquisition cost (CAC), and monthly/annual recurring revenue. Analysing these metrics will tell you where you’re currently sitting and give you the grounds to develop a business growth plan. If you’re looking to sell or wish to learn more about the metrics you need to measure, you should read this article on building a SaaS business you can sell.
Provide Transparent Pricing
Customers hate paying one price, only to be stung by hidden costs stipulated in minute print in the middle of a lengthy contract. Therefore, you should ensure that you have set clear pricing and make it visually apparent from the start. When creating your pricing, you should run them by a focus group or even your friends. Then, when you have put them onto your website, get a second set of eyes to look over it.
If your pricing model includes savings depending on whether you pay-as-you-go, pay six-monthly, or annually, you should make this clear in the first instance. If customers sign up for your service and find they’ve been unknowingly charged extra, you will drive your churn up straight away.
Reduce Acquisition Costs
In comparison to attaining existing users, bringing in new customers takes a considerable amount of time and costs a fortune. Therefore, lowering your efforts and bringing down the acquisition cost should be a high priority on your growth plan. To bring down costs, you can do the following:
- Use analytics tools. Google Analytics and Hotjar are fantastic tools for seeing the number of views, page visits, and content reads that happen on your website.
- Competitor research. Analyse your competitors’ websites and find out what keywords they are using. You may find that you have a gap in your content that will allow you to grow. Further, take a look at your competitor’s target market – this can show you where to focus your efforts.
- Talk to people. Make sure you are attending events and networking with people in your area. You need to understand the latest trends and solutions to provide the best service you can.
Sell a Solution
When you’re in the SaaS industry, the idea is to provide a solution to your customers. Yes, you are doing this through your product. However, you don’t need to sell your product to increase revenue. Instead, try focusing on the use of selling a problem and a solution. When customers come to your website and find plenty of content that will help them, they are more likely to see you as authoritative and use your product.
The SaaS industry is enormous, which makes expanding a business a difficult task. However, if you exercise logical thinking and gain an understanding of your current landscape, you’re onto a winner. When you build pricing plans, you need to be transparent to avoid hidden cost complaints. Instead of focusing on product sales, think about problem-solving. If you follow these steps, you’re already halfway there.