How to Grow Your SaaS Company

Software as a Service (SaaS) companies have huge potential for growth, with the industry expected to grow at a CAGR of 27.5% between 2021 and 2028.

Although the market declined somewhat during the global pandemic, new demand for software has led to greater opportunities for growth. The industry has helped to revolutionise the way many other companies do business and it’s a key component of cloud computing and building remote teams.

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The best SaaS companies deliver on-demand software to clients whenever they need it, using cloud technology to make software tools more convenient and accessible. Often using a subscription-based model, SaaS companies provide better value while also being simple to scale and grow. In today’s digital world, there’s more potential than ever for SaaS companies to positively impact our lives. If you’re hoping to start and grow an SaaS company, you’ll need to follow these steps.

The Right Marketing Plan

Marketing is key for any growth strategy, and you need to ensure that your marketing plan suits the service that you’re offering and the type of users that you’re targeting. Working out your target market is the most important step in creating a marketing plan, and you should research competitors and see what they’re doing too.

When creating a marketing plan, the way you advertise to your target market is important. Consider what kind of platforms they use and how they’d normally find out about similar services. It’s a good idea to create a strong digital marketing plan, as this is often more effective than traditional marketing. An SaaS SEO agency such as AWISEE will help you get the results you need, providing you with a strategy to grow your company’s online presence.

Selling the Problem Rather than the Product

Growing your SaaS company will depend the most on having an idea that works. To do this, you should focus on problems that can be solved rather than thinking about potential services. A service that doesn’t solve a common problem will never be in high demand, and it’s crucial to look at pain points. A pain point is a specific problem that a customer faces and by addressing them, you can create a more successful service.

Once you have a service that solves a problem, you can focus on selling the problem rather than the product. Instead of showing the features of the service, make sure you highlight how this SaaS will solve their problem. Implement this into the marketing as much as possible.

Work Out a Pricing Strategy

A lot of SaaS companies fail due to pricing. Either they fail to charge enough when starting out, worried more about acquiring customers, or they price things in a way that doesn’t work well for their target market. Not charging for your software at the beginning can cause you to build false hope in a product that will never work. If your service is free, a lot of people might download it but these same people might not if they had to pay.

Pricing of your service should change over time as you react to changes in the market and to your product. Remember that higher prices often convey higher value, meaning customers are more likely, rather than less likely to pay.

Acquiring Funding

Funding can be key for growth when building your SaaS company, especially in the early stages. It will help you market more effectively and acquire new customers without worrying about cash flow. There are lots of ways to acquire funding including crowdfunding, venture capital firms, accelerators and angel investors. You can find more details about these online and by attending industry events and growing your business network.