SaaS companies are overgrowing because society has a massive demand for such services. This market is growing at a rate of 10% per year, which means that by 2027 the market volume may reach more than 330 billion dollars. However, not all companies become successful. Today, no one formula can bring success to every SaaS company. We have identified 7 strategies that will help you be helpful if you are going to work in this industry.
What is a SaaS company?
SaaS companies develop, sell, and provide various software. Most companies offer programs on a subscription basis without requiring software installed on a separate device. For example, companies create and host programs on their servers or cloud storage and provide services through web browsers or special applications. It enables users to access unique software anywhere in the world.
The main difference between a SaaS company and ordinary developers is that work on one project continues after the program’s release to the world because specialists must constantly scale it up, improve the quality of service and ensure it works correctly.
SaaS developers from QArea will help you bring your idea to life, help you create high-quality software that will appeal to users, and successfully compete in the market.
7 Strategies for Growing SaaS Companies
A considerable number of startups around the world fail and cannot show sustainable growth. Statistics show that only 5% of all startups can show stable growth during the first few years. In addition, most SaaS companies need help to overcome the mark of 20% growth per year, which is very low for the IT industry. We highlight the 7 most valuable strategies to help your business grow successfully and sustainably.
1. Transition to Agile Product Development
There is no result in SaaS development. The essence of the work of such companies is to create one product and constantly improve it, taking into account customers’ needs. We advise you to make an MVP at the first stage and then improve it, taking into account user feedback and based on the opinion of business analysts.
Your software must be flexible so that you can quickly and efficiently respond to changes in the market.
An agile approach to software development has several significant advantages:
- The product is easily adapted to the needs of users;
- You can launch new features more often;
- Simplifies communication between different professionals.
It also minimizes software development costs and helps make testing as easy as possible.
2. Make decisions based on data
Sometimes developers are so sure they have a brilliant idea that they refuse to respond to apparent problems. However, if you rely on data and intuition when making decisions, you can better understand what your customers like and expect from your company. We advise you to regularly study the market and the work of your company and conduct detailed analytics. Adobe follows this strategy.
3. Build a scalable infrastructure
Your product must be easily scalable and be able to add new modules quickly and easily. One popular strategy is to use cloud services such as Amazon Web Services (AWS) or Microsoft Azure. This approach is widely used by Netflix, allowing the streaming platform to expand and constantly provide its services to users worldwide.
4. Use effective marketing and sales strategies
It would be best if you focused on the SaaS software distributed strategy. So, you need to focus on SEO optimization and content marketing, take care of advertising, and try to tell a vast number of people worldwide about your project.
5. Explore new markets around the world
For your project to be successful, you must constantly expand the market. Do not focus only on providing services from one country or region. It would help if you attracted users from all over the world, increasing your customer base. However, you must understand that people from different countries may have different needs.
6. Dynamic pricing
If it is simple to calculate the cost of goods, what to do with services? First, you need to calculate your costs for software maintenance, study competitors’ prices, and understand how much people are willing to pay for your services. In pricing, you must experiment and see how people react to price changes. We advise you to create different types of subscriptions, constantly hold promotions and special offers, and increase prices gradually and only if there is a real need for it.
7. Extraneous ecosystems around the product
Building a well-thought-out ecosystem can be extremely difficult, so we recommend making a large social media community first. It will allow you to get more detailed feedback from your users, talk about innovations and attract more attention to your project. In the future, you can create a more complex ecosystem to help you use your product in different directions and create unique cooperation with other companies.