The SaaS industry is growing at a phenomenal rate, with global revenue of $143.77 billion in 2021 and an expected growth to $720.44 billion by 2028. Opportunities in the SaaS market are massive, which is why many entrepreneurs and companies are focusing on this field.
This is a great time to start your own SaaS business, but with so many competitors, it is essential to get everything just right. We have prepared a set of unique strategies to help you improve your SaaS sales and excel in this competitive space.
This is a great time to start your own SaaS business, but to stand out, you need to be strategic. We have prepared a set of unique strategies to help you improve your SaaS sales and excel in this competitive space. Learn more about effective sales marketing strategies.
Reducing Churn to Improve SaaS Sales
When it comes to reducing churn, understanding your SaaS churn rate is crucial. It’s important to have a structured approach to calculate and reduce this rate, ensuring that your customer retention strategies are optimized. For more detailed insights, you can check out Bain & Company’s guide on reducing churn, which provides actionable advice and strategies
You can counter high churn rates by focusing on an effective customer retention strategy. It’s crucial to maintain a steady flow of customers, but making your existing customers loyal to your brand is more important.
Next, direct your attention on engaging the users. Prove to them how your product is better than the rival company’s product and why the customer needs it. Make them realize the benefits of your product. Keep them engaged by carrying out surveys, getting them to test new features and so on.
Your journey with a customer does not end with them signing up for your product, you have to communicate with them on a regular basis so that they realize how valuable they are to you. They will help you improvise and enhance your product with their unique inputs.
Have a team analyze the potential of a customer. When it detects the risk of you losing a customer, direct your attention there and reach out to them. These analytics will also help you assess what is pushing away the customers and help you get valuable feedback.
Boost the Average Revenue Per User (ARPU) in SaaS Sales
Average Revenue per User (ARPU) is a key metric in improving SaaS sales. It helps you measure how much revenue your SaaS business generates on average per user. The formula is simple:
ARPU = Monthly Recurring Revenue / Number of Users
Strategies to Boost ARPU
You can increase ARPU and simultaneously reduce churn by adopting the following methods:
- Revamp your product regularly to keep users interested.
- Be transparent with customers about your pricing and value proposition.
- Focus on upselling and cross-selling to existing customers.
Increase SaaS Sign-Up Rates for More Revenue
This is probably one of the obvious ways of improving your SaaS sales. Increased sign-up sales imply increase in the number of customers which indicates increased revenue. Direct more traffic to your landing pages.
To optimize your sign-up process, try to have a clear unique value proposition (UVP). The UVP alone should describe the problem that you are resolving for the customer and the prospects you are offering to them.
Get the customer to actively give inputs and leave reviews to convince prospect customers. Based on research, 90% of the purchasing decisions are based on the customer reviews. Keep in touch with your customers and constantly ask them for their feedback.
Invest in PPC Marketing
If done right, then PPC can play a potent role in your SaaS sales growth. PPC means pay-per-click and it is a vital component of revenue generation. Targeting top-of-the-funnel leads ia all about communicating with the users based or their interests and search history. You have to especially keep in mind all the keywords from an SEO point of view.
Interact with the users and build some trust. You have to nurture the relationship with some leads before putting up PPC advertisements. To build the trust, you will have to work on the identity of your brand and educate your leads.
Be competitive in collecting new leads and customers. If your customers are turning to other vendors, then you need to work with your ads in the right way. Optimize your landing pages with high CPCs and intense competition in PPC marketing. This will be your key to success.
We have compiled some of the best ways for YouTube improve your SaaS landing pages:
- State your value proposition at the top, so the the reader remains curious to scroll down and learn more about your offer.
- Be consistent with your ad and what you are offering or the visitors will exit the page immediately.
- Try to include more visuals because our brain processes visuals faster than text. There should be at least one main visual that tells the prospects of your product and leaves a positive impression on the reader.
- Add customer reviews and ratings to convince the reader of the genuineness of your product
- Do not just highlight the features but talk about the benefits too. Do not write essays about it though, you do not want to lose the attention of the customer. Make sure everything on the page is on point and crystal clear.
- Do not clutter your landing page. Remove all types of navigation that may redirect the reader elsewhere.
Interact on Social Media
Social media platforms are essential for increasing reach and improving your SaaS sales. However, standing out from your competitors can be tough. Here are some strategies to enhance your social media presence:
- Boost your credibility- Be true to your product on social media. Show genuine customer responses to your product and be transparent to the users. This will help build their trust.
- Build a community- Engage with the target audience and ignite conversations to keep them hooked.
- Retention- Share product tips and tricks and other educational content on your social media to attract people and establish a customer base.
Invest in Credibility
Prospect customers are already aware of the problem that your product is solving, so the one push they need to make the purchase is to be convinced of its credibility. Is your product capable enough to fulfill their needs?
Include trusted seals of privacy and security to eliminate and trust issues that the customer might have at a first glance. Adding genuine testimonials from a satisfied client always goes a long way. Positive feedback from satisfies customers leaves a good impression.
Adding a detailed case study helps the customer understand the entire process of how your product is solving their problem convincing them of its need. Feature an online support that is available 24/7 so that your customers can contact you in case any issue arises.
Flaunt your awards and achievements on your homepage to reassure the customer of the recognition of your company.
Keep SaaS Free Trials Short to Drive Sales
Free trials are an essential component of SaaS sales strategies, but keeping them short and limiting features is key to converting trial users into paying customers. By offering a taste of your product without giving everything away, you can increase conversions after the trial period ends.
This is why you need to keep your free trial short with limited features to attract the customers. Give them a taste of your product, just enough to make them want to buy the actual product. If someone can not realize the value of your product in less than a week, then there is something wrong with your product.
Rarely, a product is tried for a full month. So, try to keep your free trials short. People also take shorter free trials more seriously. Some might even forget about the free trial by the month end.
There is only one case where extended free trials are beneficial. That is when the customer becomes so dependent on the product that there is no point in them quitting now. For example Netflix.
Optimize Your SaaS Email Marketing for Sales
Keep in touch with your prospect customer and regularly remind them of your product. Email marketing is one of the best ways to convert them into customers. Some of the tips for optimizing your email marketing have been discussed below.
- Personalize- Add a personalized touch to the email. You could either address them from a private address or make them look like they have not come right from a template.
- Use the right triggers- You have to time the emails so that it will make sense when it reaches the prospects. Segment your prospect customers and then set the right triggers for each one of the based on their behavior. Send the messages you think they are ready for it.
- Be concise- Keep your emails brief and to the point.
Conclusion
With so much competition you have to be at the top of your game constantly. You lack behind in one area and you lose the entire game. Selling can be tough but if you are consistent with your efforts and smart about it, it will pay off.
Implement these strategies to improve your SaaS sales, retain more customers, and grow your business. Check out our comprehensive guide on SaaS sales marketing.
