Given the competitive nature of the SaaS industry, driving growth is vital for business survival. Many entrepreneurs want to figure out how to sell the SaaS company they started, which comes as no surprise considering the news we hear every month about how much buyers are prepared to pay for successful ones.
The good news is that it’s not difficult to sell SaaS business assets because they’re highly marketable. The bad news is developing and growing a SaaS company can be challenging and sometimes expensive. Luckily, we have the 5 best SaaS growth strategies that will help you achieve accelerated business growth in 2022.
1. Distinguish Yourself From the Competition
The most important thing is to ensure that you have a product that solves the customer’s problem. However, regardless of what your product is, there is a good chance that there are already products that are similar to yours on the market. Even if your product is original, it won’t be long until competitors provide their own take on it.
Think about what else you have to offer, except the product itself, that makes you stand out from the crowd. Free trials, lower prices, a percentage of your sales going to charity, and round-the-clock live help are some distinguishing features to consider.
2. Try Google Ads
As a SaaS business owner, you must find ways to promote your software to your target market. Without effective promotion, you’ll never be able to reach the people who will buy your product. Google is the best location to promote your SaaS service. Why? Because 75% of consumers use Google before making purchases, according to analytical data from Google.
- Google Ads. Use Gmail ads and the keyword phrases that your competition is targeting. Join the email list of your competitor and look at the keywords that are frequently used. Then, use these as your own target keyword.
- Negative keywords. You can also use negative keywords to tell Google what your product is not. This prevents your ad from appearing in keyword searches that don’t belong to your target audience and aren’t likely to result in a conversion.
- Similar audience. Similar audiences is a Google Ads feature that works similarly to Facebook’s lookalike audiences. It looks at the traits and profiles of your best-performing audiences and finds new clients who fit that description.
3.Reduce Your Churn Rate
If you want your business to grow, you should aim to reduce your churn rate and, ideally, keep it under 3%. Think about these strategies:
- Loyalty programs. Provide rewards for devoted clients to make it worthwhile for them to continue using your services. Discounts for registering for other services, a free upgrade to a VIP membership, and early access to the launch of new products are all examples of attractive rewards.
- Annual contracts. Contracts for subscription-based services shouldn’t be shorter than one year. However, you can provide shorter trial durations. Customers only have one opportunity each year to renew or churn from year-long contracts. In contrast, if contracts are three months long, there are four opportunities for the consumer to leave each year.
4. Rely on SEO
Search Engine Optimization (SEO) and a content plan are key parts of any solid digital marketing strategy. However, they are especially important for SaaS businesses to drive sustainable growth.
Keep in mind that SEO is constantly evolving. The days of producing a ton of low-quality content that is keyword-stuffed are long gone. Here are some tips for using SEO in 2022:
- Publish a consistent stream of content for your blog that is keyword-optimized. Ensure that the primary keyword also appears in the meta tag, meta description, H1 tag, and at least one H2 tag. In the text body, aim for a keyword density of 2% to 5%.
- Link to high authority, non-competitive websites.
- Enhance webpage speed. In general, pages should load in no more than 2.5 seconds. Slow-loading websites are penalized by Google.
5. Establish a Referral Program
Establish a referral program that pays customers for referring their friends and family to register. Referral programs work particularly well in the SaaS sector and other markets that offer subscription services. Why are recommendations useful? A study by Nielsen reveals that more than 90% of customers prefer recommendations from people they know to conventional advertising.
Referral bonuses should be specifically tied to your service. One illustration is a one-month contract extension for each referral. As more people make referrals, rewards should rise as well. An example would be a $15 in-store credit for the first three recommendations, and $20 for each referred person thereafter.
Although it can be difficult, expanding a SaaS is definitely possible. By following the five tips listed in this article, you’ll be well on your way to expanding a prosperous business. Don’t forget to keep your customers in mind and constantly seek out methods to improve your product or service.