Software as a service, shortened to SaaS, is a method for delivering applications over the internet. This is usually a cloud-based service, so you do not have to bog down your computer with downloads. Building a successful SaaS business requires a lot of focus, especially in the start-up phase.
A software company will grow faster than companies in different industries. They can reach a wide audience and offer services quickly, making this industry a game of numbers. This means that you will want to watch your growth closely.
You can even utilize strategies to fuel your Saas revenue growth. We will be covering some ideas below, so be sure to keep reading if you are interested.
Offer Trials and Other Free Services
When your customers can “try before they buy” they are more likely to make a purchase. If you are trying to appeal to a young generation, then you will want to follow the freemium pricing model.
You are probably already familiar with this model. It refers to any application where users receive the basic service for free but have to pay if they want the additional features. Often, advertisements within apps will make up for the product being “free”.
This type of business model is very appealing to millennials. They are more likely to use services that offer free trials, plus, this gives you more ways to reach them since they check their email constantly.
For instance, you could execute mass email marketing campaigns to generate more warm leads and promote your service. When your customers sign up to use the free trial, be sure that they have to use their email address. From there, you can send them information on the service and inspire them to upgrade to a paid version of your software.
Overall, we think the freemium business model is extremely useful when it comes to increasing your SaaS revenue. If you already do use this model, you might want to consider ways to make it better or more enticing for your customers to upgrade to your premium services while harnessing the power of email marketing.
Increase Word of Mouth
Are people talking about your services? If not, you want to focus on a talk trigger. This is some aspect of your brand that encourages conversation. When more people are talking about you, you can expect your brand awareness and Saas revenue to grow as a result.
5 talk triggers can help you earn your customers’ attention. They are:
- Empathy – Show your customers kindness
- Usefulness – Be useful to your customers
- Speed – Be responsive
- Generosity – Go above your customers’ expectations
- Attitude – Act differently than what your customers expect
All of these actions can be used as a strategic talk trigger. Is there a brand that sticks in your head? Consider what they are doing differently than their competition and what makes them stand out to you.
It is important to note that talk triggers can work the other way around too, by driving away your business. You want to be sure that customers only have good things to say about your brand to others.
You can do this by making a pleasant experience for all of your customers, instead of focusing on one person. Remember, word of mouth is valuable to a brand.
Start a Referral Program
If people are already talking about your service, you can give them incentives to pass it along to others. This can be accomplished with any type of business and build your SaaS growth rapidly.
So, what is a referral program? This is when your customers can refer others to your brand and get a reward. This is often done through referral codes or links. You will want to offer a good incentive or customers will ignore the program.
A great example of a referral program comes from Dropbox. When they started their program, there were 100,000 users. They offered an additional 500 MB of bonus storage for users and the people they referred, quickly jumping them up to 4 million users in a little over a year.
It is impressive how much referral marketing can help a business. If you do not have one set up yet, you will want to seriously consider doing so.
Try Influencer Marketing
Another great way to build awareness, therefore increasing your SaaS revenue, is to implement an influencer marketing strategy. You can do this on a budget, so do not worry about this strategy absorbing all your funds.
You will want to choose influencers who you believe will represent your brand well. You also want to be sure that they fit in with your industry. Once you have someone in mind, all you need to do is reach out to them.
Good ways to do this are through social media or email. You want to personalize the message, so never send something automatic.
Influencers often reach thousands of people. They can be the perfect method of expanding your audience and making more sales.
Publish Your Customers’ Stories
When people are talking about your service, you can encourage them to share their stories with you. Positive stories about how your product helped them would make a great post on social media.
There are multiple other ways that you can go about this. However, they all will impact your revenue growth. This is because potential customers will see the stories from real people that have used your service, making them more likely to trust your company.
This is a smaller strategy, but it can fit in just about anywhere in your marketing process. As you encourage others to communicate with your brand, you will notice growth in a variety of areas, including your SaaS revenue.
All growth will have an impact on your SaaS business and your odds at success. Any changes that you make now will continue affecting your growth later. So, you want to be certain to start right away.
We recommend that you offer freemium services, increase your talk triggers, start a referral program, try influencer marketing, and publish your customers’ positive experiences with your brand on your social media.
You can do a mix of these strategies or just one at a time, but they can all help you increase your Saas revenue.