Once the seed of a business idea has been planted, it’s hard to let go. Entrepreneurs in the software-as-a-service (SaaS) space know this very well. That’s why they work relentlessly to get their concept off the ground by developing startup companies.
Typically defined as having fewer than 30 employees, offering a single product or service, not having a well-defined business model, and pivoting frequently, among other criteria, startups are fragile. They are often bootstrapped and it takes a great deal of commitment and determination to transition into a stable company.
Whether offering customer resource management (CRM), enterprise resource planning (ERP), web hosting or eCommerce, SaaS startups are on the rise. Just last year, the market was estimated to be worth around $197 billion, a figure expected to reach $232 billion by 2024.
With so much fragility and uncertainty involved, how does a SaaS startup business scale to become bigger and more stable? In this article, we explore several proven solutions.
Targeting Enterprises with SaaS Solutions
SaaS applications operate in the cloud. They are usually accessible through desktop devices, web interfaces, and mobile apps. Their ultimate aim is to help facilitate business growth and expansion, especially in the business-to-business (B2B) space. Because of their cloud-based nature, they can be accessed by any organization around the world that signs up for the product.
However, targeting organizations, such as enterprises, can be challenging. These companies are huge. They often employ over 250 people and they are characterized by complex and intricate internal decision-making processes, especially when compared to small and medium businesses (SMBs). With several decision-makers involved in the process at any given time, it’s essential that the enterprise as a whole is fully convinced in your SaaS solution before paying for it.
But once the choice is made, your SaaS startup can flourish due to the impact of the heavyweights in the industry that trust your SaaS solution. Despite this, SaaS startups targeting enterprises face important challenges. And that is why moving upmarket entails specific strategies and approaches.
Strategies for Scaling Your SaaS Business
Expanding into new markets and geographies is a vital growth strategy for scaling a SaaS business. And there are proven SaaS growth strategies that have been successful doing so.
A few of the core components of your growth strategy should include the following:
- Know your audience: Every SaaS product is designed to meet a specific need but in order to meet a need, you need to know that there is demand for it. For this purpose, you should establish an ideal buyer persona that answers questions such as: What types of businesses are you targeting? How many people will ideally use your product? What is their demographic profile, such as educational and skill levels?, and others.
- Study the competition: Another essential element is to study your competition. Just because you have developed a SaaS solution does not mean it’s not already out on the market. Here, you’ll need to carefully consider how your competitors are positioning themselves, what they are charging, what their unique selling proposition (USP) is, etc. This is where you can use an AI-powered conversational business intelligence tool to identify competitor’s strategy and everything needed.
- Promote your unique selling points: Once you’re aware of who you are up against and who you are selling to, it’s important to clearly identify your own USPs and what sets you apart. Is it your customer support? Is it value for money? Is it the convenience or pain point that you’re solving? Or is it a combination of all of these?
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- Offer different pricing tiers: Offering different pricing tiers is a good way to cater to enterprises of different sizes and of different needs. As part of your pricing model, you could offer a free trial for a limited or unlimited period of time to draw more customers in. There’s also a strategy called “decoy” pricing where you offer three pricing options and highlight the middle one with a range of features. In most cases, the chances are that enterprises will opt for the most expensive option due to the number of additional software features that they need. Moreover, with the advent of no code platforms, businesses can now leverage intuitive tools to customize and integrate software solutions seamlessly, reducing the reliance on traditional development cycles.
- Prioritize customer acquisition and retention: As you start building your SaaS startup, your main focus will be on customer acquisition. However, this comes at a great cost to the company. So, once you’ve reached a certain customer acquisition level, you will want to shift focus and change to customer retention instead. It is often said that retaining existing customers is more valuable than acquiring new ones because most repeat business comes from your current clientele as you maximize customer lifetime value.
Growth Marketing Strategies for B2B SaaS Businesses
There are essential growth marketing strategies tailored for B2B SaaS businesses that aid in transitioning from startup to scale-up. The most general way to put this is to look bigger than you actually are. The bigger your online presence, the more authority and trust you will build, even if your team is quite small.
Helping to guide your lead generation process, make sure to focus on the following areas without fail:
- Branding: Your entire online presence needs to be consistent. This means you need to develop a brand. Choose your logo and your typography, fonts, and colors wisely and implement them consistently across every channel where you appear. Even something as simple as an inconsistent email signature can dilute your brand. To ensure that your email signature aligns perfectly with your branding strategy, it’s crucial to learn how to add a signature in Gmail. While not everyone may use Gmail, mastering this step is essential for those who do, as it significantly contributes to the overall cohesion and professionalism of your online presence. That’s why, ensuring the accuracy and reliability of your email contact information through a safe and free email verifier is crucial for maintaining credibility.
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- Website: Your SaaS startup’s storefront, you need to create an exceptional user experience (UX) when they visit your site. Have all their questions answered before they even ask. Be sure to offer online customer support, too. Your visuals and copy should be compelling. Your site loading speed should be fast. It should also be secure. And you need to tailor your website to the user experience. Moreover, staying abreast of website design trends is crucial to ensure your website captivates visitors while prioritizing user experience.
- Blog articles: Dedicating time and resources to creating a solid blog section on your website, perhaps with the assistance of a reputable SaaS content marketing agency, will do wonders for your online presence. And it’s not just a way to climb up Google’s rankings. It’s also a way to drive traffic to your website and earn valued customers. With helpful blogs that have proper linking in place, you will earn customer’s trust as a valid authority on your topic.
- White papers and ebooks: In addition to blog articles, adding value to your customer experience (CX) through white papers and ebooks is crucial.
- Case studies: Consider asking your current customers to comment on their experience with your brand and product. Collecting their thoughts and sharing them online acts as social proof that your product is worth it.
- Interactive product demos: Interactive product demonstrations are another great strategy to employ as you scale your SaaS business. Make the demo free and do it at a time convenient for the interested party. Be sure to anticipate and be ready to answer any questions they may have to allay any doubts.
- Videos and webinars: Investing in videos and webinars can make you an authority on a topic and therefore a trusted source of valuable information. Have a dedicated person from your team present videos and webinars. Once ready, don’t forget to share on social media.
- Email marketing: Email marketing is one of the highest-value, lowest expense ways you can reach your prospects. As a highly effective tool, it shouldn’t be overlooked. It requires collecting and handling sensitive customer information such as their names and email addresses. However, once the necessary protections are in place, you can begin your email campaigns and offer sales. Alternatively, you can automate certain emails, depending on where in the customer journey they are with your brand.
Conclusion
If you want to leverage your B2B SaaS solution for scaling business growth, you need to target the big players out there. But in order to do so, you need to follow proven strategies for your growth process.
As you implement the strategies outlined in this article, always keep your ultimate goal in mind: incremental growth for business success. In our digital world, this won’t be achieved without a solid online marketing strategy.
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