Starting a business could be challenging, but scaling up a SaaS startup business is even more complicated than it seems. Not only does it need hard work and persistence, but it also requires a clear strategy.
Suppose you want to scale your SaaS startup and build more profits from your business. In that case, you need to leverage your knowledge and other marketing analytics to create a solid strategy that can bring more sales to your business.
Here are 10 smart tips for scaling your SaaS startup effectively to target more customers by expanding your business strategically. Let’s check them out.
10 Smart Tips For Scaling Your SaaS Startup
One of the widespread mistakes most SaaS startups make is misallocating resources in an unorganized way hoping for overnight success. However, it doesn’t work like that. As a SaaS business owner, you should analyze and understand the business objectives and allocate the resources accordingly to scale your business. These few tips will help you explore the aspects you should optimize in your business to expand it even further.
Rethink Your Sales Strategy
Often SaaS companies tend to hire unlimited salespeople in the hope of gaining more sales. However, it only affects the cash flow with negligible ROI. To scale a SaaS startup, you need to have the approach of Smart hiring instead of bulk-hiring.
Start by analyzing your sales funnel and focus more on prospecting and hiring only the best talents required at different stages of the funnel. Only when you have a complete well-built sales model for your business can you start investing in expanding your salesforce.
Inefficient hiring can result in the declination of your Monthly Recurring Revenue (MRR) rate. It can lead to more harm than good to your business. You need to find the right balance between growth and costs which comes with only a well-built sales model for your business.
Apart from hiring, your strategy also involves processes that work on bringing new prospects, closing more deals, etc. You can find multiple tools and software that help you analyze which strategy works best for your business and what parts you can automate for streamlined marketing.
Furthermore, invest in training, workshops, and other essential practical courses for your teams. Improving your team’s skills will help them to upskill in growing your profits. Don’t forget to adjust your sales quotas and the gross margins simultaneously. It is important to push them into generating more profits with the best strategies as you scale the business.
Fuel Your Marketing Efforts
As we said, you need to explore and understand what works best for your SaaS startup. Scaling a business gives you the freedom to experiment with different channels and narrow down your results for future strategies. However, that doesn’t require you to be a spendthrift here.
The key focus should be to lower the Customer Acquisition Cost(CAC), which requires an efficient CAC strategy. This means you will pay less than your competitors to acquire customers more than them, resulting in investments in the other core business areas. Sounds interesting, right? Well, it is not as easy as it seems.
Start by paying more attention to curating content based on your target audience persona and promoting it on the right platforms. You need to ensure that you add adequate value to your customers and help them with their queries. Invest more in leadership content which also contributes to brand awareness and credibility. A good content strategy is the most crucial element you need to cut down on the costs and lower your CAC value.
Next, don’t forget to focus on the profitability factor here. To grow your business, you need to aim to have a Lifetime Value (CLTV) higher than 3x of your CAC. Let’s simplify it for you.
To increase your CLTV, you need to opt for suitable marketing mechanisms such as upsells, cross-sells, upgrades, downgrades, and whatever it takes to attract more customers, which again brings us to the importance of analyzing the needs and demands of the target consumers.
To sum up, just focus on the right business activities that can build your brand credibility, customer base and add value to your customers at lower costs.
Work on Growth Hacking
There are different growth hacking techniques that you may have heard during your journey, which may look like just a hoax or bluff. However, they bring excellent results to businesses, especially SaaS startups, when executed strategically.
Growth hacking techniques like launching a reward program to reward your loyal customers, offering help and professional advice on community platforms like Reddit, Quora, etc., repurposing user-generated content, or even discounts! The main focus should be to pick just the right strategies at the right time and deploy them accordingly. For example, during holidays such as Black Friday, etc., you can bring amazing discounts to your customers, bringing more sales to your business! You can experiment here and understand what gives your business more growth here.
Keep Your Customers Insanely Happy
Irrespective of your goal to scale your SaaS startup, you need to pay the most attention to your customer satisfaction. Start by measuring the churn rate and the Net Promoter Score (NPS), which portray the relationship between your business and your customers. This will help in optimizing your business strategy and making it more customer-centric and not just profitable.
Ask for feedback from your customers by sending them surveys and questionnaires to understand their experience with your business. This will add more value to them while building your brand reputation as someone who cares for their customers deeply. Again, such reviews and testimonials of your existing customers could be one of the prime factors influencing the purchasing decision of your new prospects. Hence, customer satisfaction is not something you can avoid in your business.
Build a Referral Program
As we said, customer satisfaction should be the ultimate goal for every business. A happy customer has the potential to bring 2x more sales to your business with the right strategies. One of the strategic ways to ensure your existing customers bring more customers to your business is by referring your business to their friends, colleagues, and acquaintances.
However, not all of them would be eager to refer your business. Why? Most of them would be too lazy to follow the entire process or just do not have any reason to do it! In such cases, you can launch a referral program at your business that motivates and encourages customers to refer your SaaS business to others and get incentives and gifts! Such encouraging referrals is a great marketing strategy that is bound to bring you more prospects, faster closing rates, and higher profits in your business.
Just propose a referral program but do not be too desperate or salesy to them since this can drive them away in no time and might as well leave your business with a bad review! Just motivate them with the right deals, and your referral plan will surely boost your business.
Improve Your Pricing
Your pricing plans have a significant role in scaling your business. While scaling, don’t consider sticking to the same price point since you are already optimizing your services and strategies, so why not optimize your price plans too?
Have the right pricing strategy for your SaaS business. Create multiple packages with names and carry out A/B testing here as well to analyze which price plans are the best performing. Try keeping the price plans as per different business objectives and your service quality. Do not forget to add diversity in your pricing plans since you need to ensure that your SaaS startup is available for both small business owners and enterprises.
Conquer the International Markets
Sure, your local area customers trust you for their requirements. However, since we are trying to scale the business, you need to offer your services internationally too. Selling your services internationally will be one of the most remarkable milestones in your business since it opens up avenues of unlimited growth for businesses.
Start by researching the markets and the industry experts worldwide under your niche. Analyze the shopping behavior of your target customers across different countries and set convenient payment methods for them. Optimize your website to help your customers easily navigate through it and make the purchase seamlessly.
Do not forget about hosting sales and discounts on international holidays, too, since this can be the stepping stone to attract potential buyers from other countries. To sum up, have the “local approach” to sell globally!
Work on Creating Valuable Content
Your content is the king and the most integral element of your entire SaaS marketing journey. An amazing way to scale your business is to optimize your content based on the target audience. To finally take things to the next level, pay attention to the different steps of your sales funnel and create content accordingly. Create the right content for the right stages of the sales funnel that can guide your customers throughout the journey. This will effectively help in converting your leads or prospects into final customers.
Explore with different content types and focus on providing value to your viewers via solutions based on your industry knowledge. Lastly, don’t forget to share it via social media, email marketing, and other marketing strategies to ensure it reaches your target audience and customers to bring more traffic to your business.
Try Paid Tactics
Since you already have set up your business, you may have explored different paid tactics beforehand. However, often SaaS startups still do not master the art of paid tactics even after years of service.
Even though organic strategies like word of mouth, etc., bring great results, your business cannot solely rely on them. While scaling up your business, you need to try out paid marketing platforms such as Facebook, Google Ads, etc., which help in remarketing campaigns. Such platforms allow you to create paid ads to bring your brand more discoverability, leads, and sales.
Your targeting method and the type of ads are the real game-changer here. You need to ensure that you create ads that represent your brand and convey the message in a crisp and concise manner. Coming to the targeting, you can set up specific geographic locations while creating the ads to reach your targeted customer.
Let’s not forget A/B testing. You ought to test your ads regularly to understand which ads have the maximum CTR, link clicks, redirects, and other metrics. Considering all of this, your SaaS business can gain massive popularity and sales through the right paid tactics.
Leverage Social Media
SaaS startups often ignore social media marketing, but it can create a significant difference to their business. Sure, SaaS companies need not be active in every social media platform. Hence, choosing the best social media platform for SaaS companies is the ultimate requirement. If you have a B2B SaaS business, LinkedIn is probably your best shot.
With over 774+ million active users, LinkedIn is a professional social media platform that can give your brand the right amount of exposure and connect you to your prospects. While scaling your SaaS business, focus on the right keywords, and you can find hundreds or even thousands of clients under the relevant industry that could be your future customers. Next, with the right communication strategy, you can easily close the deal with ease.
You can also try out LinkedIn automation software or tools which can help in speeding up the entire process of LinkedIn prospecting and marketing efficiently. Such software and tools help in automatically connecting to prospects in bulk with comparatively lesser manual efforts.
Scaling a SaaS startup is a blend of efforts in different aspects such as market positioning, remarketing, content strategy, customer acquisition, and so much more. Never underestimate the power of your business analytics and metrics. Those pieces of stuff make the stepping stones for your business to scale and strive in the long run. These few tips will help scale your SaaS startup strategically to bring more substantial profits to your business and convert the prospects into your loyal customers.