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February 27, 2024

How To Grow A SaaS Business? 6 Powerful SaaS Growth Strategies

Learn the top 6 strategies to grow your SaaS business with our comprehensive guide. Discover actionable tips to increase revenue and scale today.

How To Grow A SaaS Business? 6 Powerful SaaS Growth Strategies

Navigating the thriving software-as-a-service (SaaS) industry can be a formidable venture, especially when over thousands of such companies launch daily. However, with an annual growth rate in this industry of 13.1%, there's an abundant opportunity for entrepreneurs like you to secure their own share of this lucrative sector. 

Building your customer base is a cornerstone of SaaS growth strategies, regardless of whether you're a new venture or already an industry player with a considerable revenue stream. Retaining your existing clientele while constantly adding new ones will ensure steady growth. And to accomplish this, a solid lead acquisition and conversion strategy is paramount. Here are some tried and tested methods for growing a SaaS business:

1. SaaS Growth Through Direct Sales

Selling your product directly might seem old-school, but it's an effective way to attract and retain highly-qualified customers. This SaaS growth strategy is particularly beneficial for software products that generate significant revenue per user. 

Take Xero as an example of growing a SaaS business with direct sales. As an accounting solution, Xero successfully grew its customer base from 12,000 to a staggering 1.8 million subscribers worldwide by initially attracting customers through traditional direct sales and online self-service. Within a span of three years, the customer base saw an exponential rise to 135,000.

As an entrepreneur, embarking on a direct sales SaaS growth strategy often begins with you, the founder. Engaging with customers directly not only aids in refining your sales pitch but also provides invaluable insights into improving your product. By addressing customer hesitations head-on and offering personalized solutions - like free migrations - SaaS businesses can unlock a new growth trajectory.

If you're ready to implement direct sales to grow your SaaS business, here's how to get started:

  • Identify Your Ideal Customer Profile: Determine who benefits most from your service and where they can be found, whether on LinkedIn, industry-specific groups, or through existing email lists.
  • Enrich Your Leads: Hire a virtual assistant to compile detailed information on prospects, and organize this data into actionable lists.
  • Automate Your Outreach: Use tools like Yesware to streamline your email outreach, customizing templates and sequences to engage your leads effectively.
  • Leverage LinkedIn: With higher response rates than traditional email, LinkedIn can be a goldmine for SaaS growth, letting you connect with and nurture prospective clients.
  • Perfect Your Pitch: Every interaction with a potential customer is an opportunity to refine your pitch. Ensure your sales communication has a clear call to action, inviting leads to further engage with your product.

For SaaS businesses looking to amplify their growth, Boopos offers strategic funding options that can support the expansion of your sales operations. With our tailored financing solutions, you can invest confidently in building a sales team that drives SaaS growth. 

2. Using Search Engine Marketing (Google Ads) to Grow a SaaS Company

A very useful tool to grow SaaS companies is Google Ads - as long as your product has a decent search volume. To verify if your product has a search presence, utilize SEO tools to measure search volume and determine the viability of a Google Ads strategy. Google Ads work like an auction, where the highest bidder gets prime visibility on the search engine results page (SERP). 

Although these clicks can be expensive, for a SaaS business with strong search intent, they could be worth the investment. Keep in mind that this SaaS growth strategy requires campaigns that are well-thought-out and supported by landing pages that match the user's search intent. To harness the power of Google Ads effectively and grow your SaaS business::

  • Implement Robust Tracking: Set up your Google Ads account with a conversion tracking pixel to monitor performance and ROI.
  • Conduct Keyword Research: Focus on keywords that reflect strong user intent, such as those including "software" or competitor brand names, to target potential customers ready to convert.
  • Create Compelling Campaigns: Organize your keywords into thematically consistent groups, developing targeted campaigns with ad copy that resonates with searcher intent.
  • Design Matched Landing Pages: Ensure your landing pages align with the promise of your ads. While creating multiple landing pages may seem daunting, it's critical for this SaaS growth strategy to succeed by converting clicks into customers.
  • Set a Calculated Budget: Launch your campaigns with a budget and bid strategy based on thorough research and realistic expectations.
  • Capture Leads: Integrate lead capture mechanisms, like offering free resources or demos in exchange for email addresses, to build value beyond the initial click.

3. Improve Visibility With SEO and Strategic Content

SEO and content marketing shouldn't just be part of SaaS growth strategies - they should be central to them. SEO serves as the beacon that guides more organic visitors to your site, while content marketing engages and nurtures these visitors, leading them down the funnel to become leads and eventually, paying customers. This two-pronged approach to SaaS growth is rooted in creating content that is not only rich in relevant keywords but also genuinely informative and valuable to your audience.

Here are a few ideas for how to grow a SaaS business through SEO:

  • Optimizing Your Website: Ensure your site is a well-oiled machine for SEO, with mobile responsiveness, swift load times, and keyword optimization that places you ahead in search engine results.
  • High-Quality Content Creation: Invest in producing engaging blog posts, infographics, case studies, ebooks, and videos that resonate with your target audience, providing them with insights and solutions they can't resist.
  • Content Promotion: Amplify your content's reach by leveraging social media, email marketing, and other promotional channels to draw attention to your valuable resources.

There are many SEO strategies that can help in growing a SaaS business. Mailchimp, for example, created glossary pages for common industry terms. Optimizing these pages for SEO has helped them rank high in search engine results, contributing to over 164,000 in monthly organic traffic. The formula is clear: more content equals more traffic and more potential customers for your SaaS product. But it's not just about quantity. Your content must be top-notch - well-researched, expertly linked, and formatted for maximum readability and engagement. 

But a SaaS growth strategy focusing on SEO isn't just about what's on your site. It's also about the connections you forge across the web. Building backlinks from authoritative sites is crucial as it signals to Google that your content is trusted and endorsed by other credible sources. Whether through PR efforts, guest posting, or direct outreach, a solid backlink strategy can catapult your site's credibility and search ranking.

Remember, while SEO and content marketing can significantly drive up your traffic, the key goal from all this that’s crucial for growing a SaaS business is conversion. Make sure to capture email leads whenever possible on your blog. Engaging content paired with strategic lead capture mechanisms transforms casual browsers into potential leads, opening up opportunities for continuous engagement and eventual conversion to your SaaS offering.

4. How to Grow a SaaS Business and Nurture Leads With LinkedIn Ads

LinkedIn stands out as a particularly effective channel for growing a SaaS business because its advertising platform offers a level of specificity and professional targeting unmatched by other social networks. This makes it an ideal growth tool for B2B SaaS companies with higher customer acquisition costs. The platform's access to detailed professional data, such as job titles, employer information, and work history, allows SaaS companies to target their ideal customer profiles with precision.

Running LinkedIn ads operates on a similar auction-based system to Google Ads, where you bid either on a cost-per-click (CPC) or cost-per-impression (CPM) basis. By outbidding competitors, your ads gain visibility, placing your SaaS solution in front of the professionals most likely to be interested in it. The four primary ad formats on LinkedIn you can use to grow your SaaS company are:

  1. Sponsored InMail: This format delivers personalized ad messages directly to the LinkedIn inboxes of your target audience. It's particularly effective because it feels personal and direct, much like a one-on-one conversation or email, and tends to have higher engagement rates.
  2. LinkedIn Text Ads: These are simple yet powerful tools for SaaS growth, appearing in the sidebar of LinkedIn's interface. They're typically more cost-effective and can be a good way to drive traffic without the higher costs associated with more prominent ad placements.
  3. Promoted Content: These ads appear directly in the LinkedIn feed, resembling regular posts, which can be an excellent way to promote thought leadership content and drive engagement.
  4. Dynamic Ads: These personalized ads stand apart by automatically customizing content based on LinkedIn profile data. Dynamic Ads engage users with highly relevant, personalized content that can significantly increase conversion rates.

Also, LinkedIn's remarketing capabilities are an excellent tool for growing a SaaS business, allowing companies to re-engage with users who have already shown interest in their product, often resulting in a more efficient use of ad spend. This is because you're targeting an audience that's already familiar with your SaaS offering, which can lead to higher conversion rates.

5. PR Can Benefit All Sides of a SaaS Growth Strategy

PR is an invaluable asset for growing a SaaS business, serving as a powerful avenue for sharing your brand's narrative and attracting customers. When executed with precision, PR can yield an impressive return on investment, offering visibility and credibility that advertising efforts often cannot match. 

Here's how to effectively integrate PR into your SaaS growth strategy:

  • Define Your Target Audience and Goals: Set clear objectives for your PR campaign, focusing on acquiring profitable customers. Identify your core customer profiles and the publications they frequent, ensuring your efforts are targeted and impactful.
  • Plan and Calendarize Your PR Activities: Develop a PR calendar that aligns with significant dates and events in your industry. Strategize around key topics each month, leveraging both social media and email marketing to disseminate your content and maximize its reach.
  • Connect with Industry Editors: Establishing relationships with editors from industry-specific publications can expedite reaching your target audience. Engage with about 20-30 relevant blogs and publications weekly, introducing your company and building rapport before pitching.
  • Secure Media Coverage: Prepare for rejection but persist with your pitches. The Harvard Business Review notes that 70% of publishers welcome pitches relevant to their coverage area. Ensure your outreach is concise, researched, and provides value to the editor. Enhance your pitches with images, product demos, and quotes from your executive team.

Remember, PR is a marathon, not a sprint. Consistent effort over time can yield significant dividends and be a great approach for how to grow a SaaS business. Beyond immediate visibility, the backlinks garnered from PR placements are also instrumental in bolstering your SEO, creating a synergistic effect that supports long-term SaaS growth.

6. Acquire Customers and Encourage SaaS Growth Through Referral Programs

Referral programs are a cornerstone of customer acquisition strategies, and they’re particularly effective as SaaS growth strategies due to their cost-efficiency and high conversion potential. These programs turn your existing customer base into brand ambassadors, leveraging their networks to draw in new users. Not only do you gain new customers through trusted referrals, but you also reward and further engage your current users, enhancing retention and creating a virtuous cycle of growth.

Implementing a successful referral program for your SaaS business involves several key steps:

  • Targeted Approach: Clearly define your target market and develop buyer personas to understand the needs and pain points of your ideal customers. This ensures that your referral program messaging resonates and is more likely to be shared among potential leads.
  • Use of ABM Tactics: Account-based marketing (ABM) can be effectively paired with referral programs to focus on high-value leads. ABM personalizes the marketing experience for specific key accounts, which can enhance the effectiveness of your referral program by targeting decision-makers within those accounts.
  • Incentivization: Design a compelling offer for both the referrer and the referred. The classic "give $20, get $20" model is popular because it provides immediate value to both parties, incentivizing the sharing of your SaaS product.
  • Referral Tracking Software: Utilize referral program software to manage the intricacies of your program seamlessly. These tools automate the tracking of referrals, attribution of rewards, and the payment process, ensuring the program runs smoothly and is easy for your customers to use.
  • Promotion: Actively promote your referral program through your marketing channels, including email campaigns, in-product messages, and social media, to ensure your customers are aware of the program and its benefits.
  • Measurement and Optimization: Monitor the performance of your referral program and its effectiveness as a SaaS growth driver through analytics to understand its impact on customer acquisition. Use this data to refine and optimize the program continuously.

Combine SaaS Growth Strategies for Success

What’s the best way to grow SaaS companies? The trick is to use a mix of these strategies mentioned above, then tailor them to your business needs. The right blend will help you maximize growth quickly and effectively

If you’re ready to step into this world and grow your own SaaS business, Boopos is here to help. We're more than just a funding option; we're a strategic ally. We offer bespoke financing solutions for entrepreneurs looking to acquire SaaS businesses, aiding not just in the acquisition but also in fostering long-term growth. Our pre-approved business directory offers a broad array of potential acquisition opportunities that have already passed through a rigorous due diligence process, ensuring you start your SaaS journey with the right foot forward so that growing it becomes even easier.

Connect with Boopos today to get qualified, and let’s lay the foundations so you can grow a SaaS business from a dream into a profitable reality.

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