8 Steps For Growing a Successful SaaS Startup

Every startup business has a long period of uncertainty, and SaaS startups are no exception.

That's why it's best to make sure every step is carefully planned so that your business can grow and stand out in the market.

In order for SaaS startup companies to make an impact and show revenue, several strategies could help achieve that goal.

1. Get Familiar with Your Competitors' Business and Marketing Strategies

This may seem sneaky but it's only logical to analyze what strategies your competitors use to put their product out there. Even if you believe that your product is unique, there is probably a similar service that meets the needs of the same target audience. In other words, there are always competitors to learn from, whether they are direct or indirect.

It is good to know if your competitors offer a free SaaS trial, for example, and how long its duration is. You can also check which one of the three pricing strategies they use (them being feature-based pricing, per-user pricing, and tiered user pricing). Determining which marketing channels they use can stir you in the right direction as well. All of this helps you pinpoint what works with your target customers and what doesn't.

2. Offer Free Trials or Freemium Services

Nowadays, almost nothing is bought before you get a chance to test it first in some way, and that's especially true with SaaS products. This is where the freemium pricing model comes into play. As Millennials make the majority of global customers today, this model would be a perfect choice for them because they and Gen Z-ers prefer the self-serve feature. Free trials are just an extended version of this model, so you better consider both options for promoting your SaaS product.

3. Research Different Pricing Models

One of the most popular pricing models for SaaS products is a subscription-based type, which can be on an annual or a monthly basis. The reason behind this is that each customer brings great potential lifetime value. In other words, in some cases, it is better to have a lot of customers paying a couple of dollars a month to keep using your service than selling the service to just one or two people for a hundred dollars. The first option also brings a higher lifetime value.

4. Outsource Specific Aspects of Your Business

Most of IT startups can benefit hugely from outsourcing. Creating SaaS products requires a high level of IT expertise in several aspects and business and web development experts may not be as easily discovered.

Outsourcing solves this issue because it allows you to think beyond your own company and even beyond the borders of your own country. This leads to several types of outsourcing, the main two being onshoring and offshoring. Onshoring implies transferring certain business activities outside the company but staying within the national borders. On the other hand, offshoring includes relocating operating activities to another country. Offshoring can be in a nearby country - nearshoring, or in a far-away country - farshoring.

Another goal here, especially in the IT sector, is to find excellent and dependable experts for a lower price than in the home country.

5. Create a Detailed Demo

A comprehensive and impressive demo is the surest way to attract new clients. It will have a strong and direct impact on the overall sales of your SaaS product. There are a few steps to make to create a good demo:

• use simple words to explain to the user how your product works
• don't make your video longer than 15 minutes - the essential information should fit into this timeframe
• stick to the benefits your user will get from using your SaaS product and leave out in-depth features
• Include a call to action at the end of the video - it is a strong psychological trick.

6. Launch a High-Quality Referral Program

Companies that have a formal referral program experience higher sales and build a well-coordinated relation between the marketing and the sales teams. A SaaS company can create a referral program for every type of product and bring profit if it's done well.

For example, Dropbox managed to reach 4 million users, even though there were initially “only” 100,000, simply because they offered 500 MB of extra space to those who referred Dropbox to a friend (and they even rewarded the friend, as well).

7. Branding for Visibility

The branding process is a time well spent because it can help your SaaS startup stand out from the crowd in the target market. There are probably companies offering a similar product that have a bigger budget than you.

Here, your biggest focus should be on differentiating yourself by including specific features into your product. Maybe your design will be more attractive or your software will be more intuitive to use. Creating a brand means a lot in a world overwhelmed with options.

8. Get a High-End Influencer

A great marketing strategy for a SaaS startup is to attract the attention of a high-end influencer. Don't worry, you don't have to reach deep into your pocket for this strategy to work. You just need to be smart and pick the right influencers, preferably in your industry or maybe those who represent perfect users of your SaaS product.

When you come up with a list of potential influencers, reach out to them, start sharing their content and follow them on social media platforms. In time, it could become reciprocal, o you can engage with them and help get to know your product.

Final Comment

Be prepared for a challenging period after forming a SaaS startup. Bear in mind that every challenge can be overcome with carefully planned out strategies. Every success is made up of numerous small steps - just be patient.