Learn the top 6 strategies to grow your SaaS business with our comprehensive guide. Discover actionable tips to increase revenue and scale today.
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:
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.
A very useful tool to grow SaaS companies is Google Ads - as long as your product has a decent search volume. 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.
Organic ranking through search engine optimization (SEO) is crucial for lead generation. The aim is to optimize your website content to rank higher on search engine result pages, particularly Google.
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.
A few best practices to use SEO for SaaS growth include:
Targeting keywords that matter: Conduct intensive keyword research to find uncompetitive, highly-searched keywords related to your product.
Frequent blogging: Aim to publish five posts per week to increase Google's attention towards your site.
Ensuring content quality: Make sure your posts are insightful, keyword-targeted, and well-formatted.
Obtaining backlinks: These improve your site's credibility and are a vital part of a strong SEO strategy.
LinkedIn advertising has proven beneficial for SaaS businesses. Sponsored InMail campaigns, in particular, provide an effective way to directly engage with your target audience, with the potential for high open rates. LinkedIn's rich data on job titles, employers, and work experience make it a valuable tool for SaaS growth.
Engaging in PR activities can greatly boost your brand's visibility and credibility. Define your target audience, strategize, create a PR calendar, and build relationships with industry editors.
Just keep in mind that PR is a long-term SaaS growth strategy - that said, it can also significantly benefit your brand’s SEO.
Referral programs are an effective customer acquisition strategy. They can be easily created using referral program software, which handles the program mechanics from customer referral URLs to payments.
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.
