The SaaS industry is growing at a phenomenal rate with global revenue of $143.77 billion in 2021 and an expected growth of $720.44 by 2028. Opportunities in the SaaS industry are massive which is why the youth is turning towards it.
This is a good time to start your own SaaS business but with so many competitors, it is important to get everything just right. We have prepared unique strategies to help you improve your SaaS sales and excel at it.
A low churn rate indicates the value of your product and also tells that the lifetime value of your product is high. Churn rate is the first thing to discuss while talking about a company’s sales performance.
Churn rate is a major challenge that companies face and try to reduce as much as possible. You can counter churn rate effectively with an effective customer retention strategy. A steady flow of customers is important but making your customers loyal to you is more important.
To improve customer retention, start with aligning your team. Every segment of the sales team has a different target like getting new customers, improving product features, etcetera but customer retention should be a common goal of the sales team.
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
Average revenue per user is a metric that will help you measure the average revenue your SaaS is generating over a specified period of time. There is a very simple formula for calculating ARPU.
ARPU = Monthly recurring revenue / Number of users
You can boost your ARPU and reduce the churn rate by adopting the following methods:
- Revamp your product.
- Be transparent with the customers about the pricing.
- Upsell and cross-sell to the existing customers.
Increase Sign-Up Rates
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 is a great way to increase reach but how can you stand out from your competitors? Given below are some of the best social media strategies for SaaS companies.
- 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 the Free Trials Short
Free trials are the most lucrative thing for customers in a SaaS business. A free trial can efficiently portray how valuable your product is but if not done right it can prove to be a loss for you. Prospects will use your product in the free trial period to get everything they want out of it and then never make the purchase.
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 Email Marketing
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.
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.