Scaling is essential for success in the SaaS industry. If you can’t scale, you can’t reach new customers. Once your customer pool stays stagnant, your competitors will overtake you.
With so much competition and such a small time frame to get it right, scaling your SaaS business can seem scary. Luckily it doesn’t need to be so difficult!
We’ve compiled this list of top tactics on how to scale your SaaS business for success. Let’s dive in!
Tactic one on our list for how to scale your SaaS business is all about your sales strategy; Rethinking, revamping, and reinventing the way you go about selling your SaaS.
Here are some top tips for taking your sales strategy to the next level:
→ Investigate Your Sales Funnel
Having the perfect sales team means nothing if your sales model isn’t the right fit for your business. Step one in perfecting your sales funnel is to look into different SaaS sales models. Choose a repeatable, scalable model that best suits your product.
→ Get to Know Your Staff
Assembling an effective sales team means hiring the right amount of staff with the right amount of skill. If you hire too many salespeople, you could harm your cash flow. If you hire too few, sales opportunities will slip through your fingers.
→ Optimize Your Sales Tactics
Once you’ve got your model and your staff, it’s time to focus on your strategy. What procedures are you going to put in place to sell your SaaS?
Make sure you:
• Automate where possible to improve time management and resource allocation.
• Invest time and money into training for your sales teams.
• Hire qualified and effective management.
• Check sales quotas and gross margin percentages and adjust accordingly.
→ Zoom in on Micro-Segments
Create account executive sales teams for specific segments of your audience. An account executive sales team could focus on a particular region where part of your audience is situated. They can tailor sales strategies to that region’s market or solve common problems in the micro-segment.
Tactic two for how to scale your SaaS business is refining your marketing efforts. Effective marketing strategies are contingent on careful planning and market analysis. You need to strike the right balance between trying new techniques and using standard channels.
Across all industries, there’s one undeniable fact that happy customers are the backbone of any successful business across all industries. Keep your customers happy, and they’re guaranteed to stick with your brand. Upset your customers, and you’re handing them to your competitors.
This brings us to tactic three on how to scale your SaaS business — customer satisfaction. To keep customer satisfaction levels high, make sure you:
• Adopt customer-focused strategies at all levels of your business.
• Consistently ask for feedback from your customers.
• Demonstrate your interest in customer satisfaction through product innovation.
• Pay attention to negative reviews — train customer support staff to help unhappy customers solve their problems.
If you want to scale your SaaS fast, converting customers to advocates is an effective way to do so. But how do you create brand advocates? Try number four on our list for how to scale your SaaS business — referral programs.
Tapping into the power of referral programs allows you to inspire brand loyalty within existing customers. You’ll simultaneously spread brand awareness to potential customers.
Start by reaching out to your customers to ask for feedback about your product. Once you’ve started a conversation, lure them in with details about your referral program and the possible rewards.
You can incentivize advocates to share your brand with their network in return for a reward for any successful referrals. Remember — make sure your staff is well-prepared to woo your customers into advocacy.
Your product can be perfect, but if it’s priced too high, it won’t sell, and if it’s priced too low, you won’t make a profit. So tactic five for how to scale your SaaS business is all about pricing.
The ideal price point for your SaaS will fluctuate with the market. You’ll need to prepare your pricing structure for continuous optimization.
Try experimenting with different pricing packages to see which combination hits the sweet spot for your SaaS. Employing A/B testing market testing can help with this.
Any list for how to scale your SaaS business would be incomplete without metrics. Tracking, analyzing, and utilizing metrics is an essential factor for scaling SaaS. Without understanding your metrics, you can’t plan for scaling or justify valuations.
You need to know what’s working for your SaaS growth and what’s working against it. And prospective metrics give you a feel for your scaling trajectory, like your sales cycle, sales costs, and payback period.
Some key metrics to look into are:
• Customer retention.
• Conversion rates.
• Growth rates and margins.
• Cost per acquisition (CPA).
• Revenue run rate.
• Customer lifetime value.
• Net promoter score (NPS).
• Churn rates.
• Monthly recurring revenue.
Tapping into the benefits of micro use channels takes the spot of tactic seven on how to scale your SaaS business. Your product design teams can consider micro-use channels during product innovation. If your SaaS can address functionality issues with or connect easily to other apps, you’ll have more success in the market.
Coming in at number eight on how to scale your SaaS business is optimizing your team. You need to make sure all teams within your business are not only working together but working together in the most optimal way possible.
To achieve this optimization, you need to create cohesive teams which offer the right blend of skill and personality.
Well-rounded, effective teams often have the following combination of people:
• Stars = high-performers and role models for the rest of their team to emulate.
• Sherpas = operation-perfectionists whose consistency keeps the team moving.
• Strategists = visionaries who act as long-term optimizers for your team.
• Specialists = people who bring expertise and knowledge to your team.
• Supporters = team members who take on extra workloads and help out.
For tactic nine on how to scale your SaaS business, we’ve got easy product adoption strategies. Difficult product adoption creates barriers to renewals and referrals, so they should be avoided at all costs.
Making product adoption a seamless experience requires unfailing, effective, and targeted customer support. Your staff needs to hold your customer’s hands through every step.
Top tip. Offer customers as many options as possible to make product adoption easier, from walk-throughs to offering free trials, from easy data migration to one-click installs.
Now that you know how to get started with scaling your SaaS business, discover our complete list of tactics for successful growth on PayPro Global’s blog.