Powerful Strategies To Boost Your SaaS Business Revenue
The SaaS industry is proliferating, which is most likely a result of the intensified use of technology by companies and individuals. SaaS is the acronym for ‘software as a service’. Your business retains the licence or ownership rights to the software, and your customers pay a regular fee to use it.
According to Gartner, cloud applications will continue growing in the following years, with SaaS applications being most notable and contributing about 50% of the total increase in revenue.
So, if you’re a SaaS business owner, this is an excellent time for growth. However, change doesn’t come easy. Many SaaS companies have great products but still don’t grow at the pace they should. Why? Because they aren’t able to develop a clear strategy and focus their efforts.
If you’re one of them, keep on reading. We’re offering 5 tips that will help you boost your revenue and grow your SaaS business.
Reduce Your Churn Rate
What better way to boost your revenue than by no longer losing it? When it comes to SaaS, attracting customers is usually the most complicated part. Many companies struggle with high abandonment rates, so your goal is to ensure that, once customers arrive, they don’t go away quickly. Here are a few tips to help you do this:
Minimize errors and make sure to offer users the best possible experience;
Avoid creating too high expectations, i.e. selling something you can’t really deliver as your customers will get disappointed and leave;
Excellent customer service is crucial for SaaS companies. Showing interest and providing support is the best way to build a trustworthy relationship with your customers;
If customers decide to leave, don’t be insistent. Instead, invite them to come back whenever they want. However, try to find out why they decided to leave as this will help you make the necessary improvements.
Leverage the Power of Social Media
Any company that wants to grow needs a solid social media marketing strategy. If you don’t have one, you’re probably missing out on many recruitment opportunities as many people go to social platforms to get info about companies. If you manage to create a strong and appealing social media presence, your customers will be able to share information about your brand and increase your visibility for free! You need to:
- Talk about your company, your team, your culture, your product, etc.
- Produce engaging content on a regular basis
- Adapt your content to your target customers
- Create a community to integrate users by making them part of your company
Focus on Content Marketing
Content marketing is great for SaaS businesses as it helps inform and persuade customers that the company’s product is worth their time and money. That being said, several written formats work well, but here’s one that’s simple and effective enough to get you started.
Begin by stating your intention
What do you want to achieve with your blog post? This will immediately let the readers know what to expect, but it will also guide you through the writing process.
Define your target audience
This will help you to find the right words, quotes, images, and emotions. It will also help you identify the best distribution channels for your content.
Making sure you get the title right can make a huge difference. Ideally, it should be optimized for clarity, FOMO, and tweet-ability. Some examples of catchy formulas include “How to …”, “7 Proven …”, “Did you know …”.
Split your article into clear paragraphs, with each paragraph containing one thought. This will make it easier for readers to talk about your article, comment on it, and even share it.
Choose great images and descriptions. Check out how content is displayed on Facebook, Twitter, LinkedIn, and all other platforms you’re planning to include in your content marketing strategy.
Get the image and description right, Depending on the platform, getting the image and description right could be even more important than getting the title right.
Call to action
Finally, once you’ve grabbed your audience’s attention and they’ve reached the end of your article, make sure to give them clear directions of what you want them to do next (call-to-action): sign up for your email list, follow you on Twitter, check out your product, etc.
A good testimonial can have a great impact on your conversion rate. Although this isn’t a cutting-edge technique, many companies tend to incorporate testimonials that sound unrealistic, emotionless, or not specific enough. Sometimes, testimonials can sound good but seem too generic (and are probably fake).
So, what does a powerful testimonial look like? Here are a few ideas you should focus on:
- Choose testimonials that touch a major pain point people want to solve
- Include details and be specific
- Display legitimacy with a photo, name, title, and industry
- Make sure that your testimonials are made by a relevant customer type and that they’re legitimate
Offer Annual Payments
Make sure to give discounts to customers who would like to pay for one year upfront. This discount can be either a 10% discount or 1-2 months of free service, and it will help you get an immediate increase in cash flow.
This is a good strategy for 2 reasons:
- You can use your increased cash to invest in further growth
- You make sure you keep your customers for at least one year
Frequently, SaaS companies are so focused on creating and improving their product that they neglect improving the sales funnel and marketing it. But thinking that great products will sell themselves couldn’t be farther from the truth. That’s why it is important to allocate resources to optimizing your acquisition and onboarding strategies and processes.
Implement these five strategies correctly and you will manage to boost customers’ trust, help them purchase a paid plan, improve customer retention, and boost your cash flow.