5 Advanced Growth Tactics for SaaS Companies
If you want your SaaS company to grow, then you need to get several key issues right. These particular tactics will position your product and marketing for explosive growth.
1. Solve a Big Problem
If a company’s product or service does not relieve a pain point, then potential customers won’t be motivated to buy the product or become a repeat customer. Companies may not be aware that they need to relieve pain points to improve prospects. For simplicity, we group them into four broad categories:
Customers spend too much money on their product or service, and they need to reduce their outlay.
Potential customers waste too much time on daily activities or want to use their time more effectively.
Companies would like to improve internal processes, like following up on prospects or improving the way they assign leads to the sales team.
Prospects are not getting the support they require at critical junctures of the customer experience or sales journey.
Finding the appropriate pain points gives companies opportunities to develop a product or service to address them.
2. Use Advanced Analytics
SaaS companies can use advanced analytics to scrutinize past customer behavior. The objectives are: to improve customer engagement, reduce churn, and, ultimately, grow recurring revenue.
For Customer Feedback
Something is amiss if the company site has pages with low page time and high bounce rates. It is detrimental to the business right now, but we can look at it as feedback from customers -- valuable information that indicates something about the product needs improvement.
Advanced analytics can provide a wealth of information about what is occurring on a company’s marketing website. This includes which pages have the highest and lowest conversion rates and which marketing channels are the most profitable for the company.
Many websites use Google Analytics as their basic analytics tool. While it is a great tool with incredible out-of-the-box functionality, there are more advanced analytics platforms out there that offer more.
Woopra’s customer analytics measures customer interaction data on things like page time, bounce rates, and even cross-device interaction. Smart product managers and marketers can use these analytics to look for which metrics are low and how to improve them.
Similarly, marketing websites with pages have the highest and lowest conversion rates and for the marketing channels that produce the most profit.
You can approach this from three angles.
Descriptive analysis measures past customer behavior; for example, how customers shop, what they shop for, and where they shop.
Predictive Analytics helps companies forecast future outcomes.
Prescriptive Analytics targets a company’s customers and offers them the most relevant products or services at the correct place and time.
3. Launch an SEO Marketing Campaign
Good search engine optimization (SEO) gets products in front of the people looking for them -- primarily the people who are truly interested. It gets you in front of people who are actively searching on Google for your keywords. But companies don’t want to pay for those clicks if they don’t have to.
Successful SEO campaigns have helped many SaaS companies grow and scale successfully: Canva, Lucidchart, Hubspot, and WordStream all used SEO as a huge part of their marketing strategy.
The SEO process involves optimizing websites for search engine keywords that they want to appear for. This involves both technical optimizations to the website structure, and also content creation.
According to SEO expert Garit Boothe, there are three parts to an SEO campaign. “You need to optimize your website layout and code for search engines, but you also need to produce content for the search engines to find and index.
“The search engines also want to see that your website is getting linked to from other websites. They consider an editorial link from one website to another as an ‘editorial vote’. That’s why a big part of SEO is reaching out to other websites so that they link back to yours.”
When writing for SEO, it’s important to target a different keyword with each article. Great content is well-written and engages potential customers. It also educates them about product or service features in an exciting manner.
According to SaaS entrepreneur and growth expert Jeremy Moser, SEO can play a pivotal role in growing your business. “You need to write compelling content and optimize it for semantic search,” Jeremy said. “Building links to your website is essential for organic growth, but writers and editors will only want to link to your website if your content is good.”
4. Influence the Influencers
Someone, somewhere on the internet speaks as an authority about your industry’s products or services. Potential customers probably know who these people are. They respect their opinions and are happy to hear from them about product information and their comments and reviews pertaining to what the company offers.
Influential people can help you attract new customers and grow your business because they are the ones that your potential customers are listening to.
When running an influencer campaign, you need to keep in mind your goal. Is your company attempting to drive sales? Generate brand awareness? Or maybe introduce a new product?
After defining the goal, you need to seek out the best influencers for your industry. You can find them on social media sites like FaceBook, Instagram, LinkedIn, and Twitter. We work with them to tailor their opinions to the product.
You can have them review your service or product, usually in exchange for free product usage or a fee. It’s even better if you can get them to talk about you for free.
After the influencer campaign kicks in, then track and analyze the results. The numbers that you want to look at vary from comments, likes, and shares to website sales.
5. Make the Product Sticky
Making a product sticky goes beyond having customers return for more products or services. It means they become locked into the product or service to the point where moving to a competitor’s service or product would take considerable time, money, and effort.
A good example of sticky products comes from banks. Customers initially sign up for a checking and savings account which gets them using the bank’s services on a regular basis. Then, when they need a loan or a credit card, they come to come to the bank that has their checking account.
Once a person becomes a bank customer, the hassle factor is quite high for her to switch to another bank. The bank has created a sticky service, which is why banks sometimes offer as much as $500 to new customers to entice them to switch.
Similar scenarios exist for software products. Spotify knows that daily users get more ad impressions and are more likely to upgrade to becoming a paid customer. The business model of all social media companies is reliant on people becoming addicted to their free platform.
B2B SaaS platform Workday invests significant resources into onboarding and educating new clients in their platform. They know that once a client makes the significant investment to get employees using their platform, they won’t switch for years, because the product has become integrated into their daily workflows.
In addition to retaining customers, sticky products can create cross-sells, upsells, and referrals. The longer customers use the service or product, and the better it becomes, the more customers talk about it, use it, and recommend it to their friends.
Take advantage of these five growth tactics for SaaS companies. If you get these product and marketing elements right, all other aspects of company growth fall into place much easier.