SaaS companies don’t have it easy. The SaaS global market is growing 18% every year – by 2026, it is expected to reach a huge 947.3 billion. This means major competition. To acquire new customers, you’ll need to provide incredible value to them, and sometimes just reaching them is the hardest part. This is where serious growth strategies come in.
It’s not uncommon to start scaling up your business only to find that some continuous roadblocks stop you from reaching your goals: high customer acquisition costs (CAC), low customer retention rates, or a low customer lifetime value (LTV)… If you want to see your business reach its full potential, you must start to strategize efficiently.
Don’t worry – we’re here to do the hard work for you! Here are the best SaaS growth strategies that will ensure success for your company, including:
- How do SaaS companies grow?
- Different Strategies for Growth
- Growth Marketing Template
- How to Grow your Business and Ensure Success
Ready? Let’s go!
How do SaaS companies grow?
There are many ways for SaaS companies to strategize their growth. The type of business model you have will impact your roadmap to growth. Here’s what your roadmap may look like depending on whether you are a product-led or sales-led company.
Product-led SaaS companies usually want to reach global audiences first, and then upmarket later, to truly prove the value of their product. To achieve this, they focus on making their software the best it can be, reaching out to audiences outside their home market, and growing their user base.
Once their number of users has grown significantly, only then will product-led companies have the opportunity to upmarket and monetize through a variety of paid subscription plans that ensure loyal customers and constant, annual revenue growth.
So, for product-led companies: invest in reaching new users and conveying the value of your product. Then, your users will become paid customers, and you’ll be moving upmarket in no time, increasing your overall SaaS growth.
Sales-led SaaS companies focus on moving upmarket first, then introducing their product to a global audience. They’ll start by establishing a good pricing model, and the best business deals possible to monetize their product. Then, they’ll upmarket by maximizing their deals with the biggest companies they can reach.
From here, their upmarket approach will lead them to internationalize their product for continued, steady growth.
So, for sales-led companies: focus on your pricing models and best deals from the beginning and keep maximizing these accounts. Then, your product will expand its reach globally in no time, increasing your overall SaaS growth.
There are many strategies that will help you grow no matter what type of SaaS company you are, just keep in mind that they’ll be at different stages of your growth roadmap.
Different ways to optimize your growth strategy
There are many methods you can use to establish a very solid and successful foundation for a SaaS growth strategy… and they’re far simpler than you might think.
Invest in Marketing
Investing in various marketing tactics is a big factor that helps with the acquisition of new customers. You can do this in different ways:
- Content Marketing. Realize what your customer’s pain points are throughout their consumer journey and then add value by providing them with solutions. It will attract more customers and increase your brand awareness and customer retention. The most popular ways to achieve this is with blog posts, videos, social media posts, checklists, and colorful presentations with professional presentation services.
- SEO. Invest in creating content pillars that are optimized. You want your website to be the first your target customers find, so do keyword research and focus on using the ones you find. Then, start link building and guest posting, and you’ll see a change in no time
- Referral. Reward existing customers with credit incentives and discounts every time they share your product with other potential customers. It’s cost-effective and creates brand loyalty
- Email Marketing. Drive user engagement and increase conversions with regularly-scheduled emails that inform your customers of industry-related news, onboarding processes, and company discounts
- Retargeting. Take advantage of tracking your consumers on other sites and target your brand there. It will improve conversion rates and allow for growth
Different pricing strategies help with various factors, such as:
- Freemium models usually guarantee attraction as it encourages users to sign up and use the product, and also with conversion rates, as they see the value of your product faster. This makes them more likely to purchase higher subscription models that will let them get access to the rest of the features.
- A good range of team plans is the key to moving upmarket as it allows for year-on-year revenue growth. Customers will find the perfect option for what they need, which will help with retention and avoid churning. The pricing of the model needs to reflect the value of the product.
Good customer support ensures your users are happy. With FROGED’s customer support feature, you’ll be providing more proactive customer support, which will help with retention and, at the same time, with new customer acquisition. If your current user is happy, they’ll spread the word and become ambassadors of your brand – remember, word of mouth is real!
It’s super important to get customer onboarding right on the first try – your customer’s journey while using your product for the first time makes or breaks your future with them. You don’t want to lose customers, because lost customers = lost revenue.
- Focus on customer success. This means having your sales team get a good understanding of the importance of onboarding and then promoting your SaaS accordingly
- Get specific with your customers’ needs. Will your product meet them? Start getting feedback from them and your teams, and you’ll have a good guess of pain points and how to fix them
- Stay in contact with your customers. The first 24 hours are key to keeping momentum in the onboarding process, so post FAQs and tutorials to always be available to them
Ensure product growth by making your SaaS the best it can be. If your product speaks for itself, fulfills your customers’ needs, solves their problems, and generally makes their lives easier, you’re doing it right! With FROGED Product Flows, you can do this by tracking user interactions and identifying the areas that need improvement – optimize, optimize, optimize!
Growth Marketing Template
To skyrocket your business in no time, you can use FROGED’s Growth Hacking Framework. It’s a free template that lets you organize all your growth initiatives and experiments right within Notion (an app that focuses on productivity and achieving goals). With this template, you can:
- Prioritize ideas. Thanks to its PIE scoring framework, it lets you easily sort through all your growth ideas and thoughts
- Test and learn. Map out your plan using the Sprint, Timeline, or Calendar view that ensures clear team communication
- Track goals. Set your OKR metrics easily, so you can track your team’s progress and keep track of your business’ growth
You also get access to a Growth Library with more than 100 hacks to help you find inspiration on how to keep your business growing. And the best part… it’s free! You can download it straight away at no cost and start experimenting with it now to start optimizing your business’s growth plan.
How to Grow your Business and Ensure Success
There are no sure pathways to growing a business and ensuring success – but there are many strategies and techniques you can start implementing in your day-to-day life to see some change. Depending on whether you’re a product-led or a sales-led SaaS you’ll focus your energy on developing different strategies, but investing in content marketing, customer onboarding, and product optimization can ensure you reach that next level.
If you’re itching to start planning and strategizing, book a demo with FROGED to learn more about growth strategies and templates that will help you improve your SaaS in no time.