A lot can be achieved when we begin our search for innovation with an open mind. A mind that embraces all ideas without judgment. Hence we start with the known. Before delving into the murky deep of the unknown.
This, however, isn’t always feasible. But a truly innovative approach would involve the speed of execution and delivery of ideas that pass the battering ram of tests.
In SaaS, this innovative approach would involve Rapid Application Development and product agility as discussed by wavemaker in the enterprise solution they offer.
You can achieve a lot, and save loads of costs with this. Lower maintenance costs and application development can be quickened. But today we’d be looking at four-pointers for you to better manage and increase your SaaS growth trajectory.
Educate Your Market
Let’s face it, a lot of your potential clients don’t know that they need your product. They do not know. So it’s in your best interest to get them informed. Because the more informed your buyers are about your products, the quicker they buy from you.
SaaS sales and marketing thrives on information. Share relevant information about your product through every channel available.
Consider yourself a connoisseur of SaaS-related information, and dispense this helpful information liberally. But it’s not as simple as that. How often should you get your information and content ‘out there’? A whole lot if you ask me.
So provide information. Since SaaS has a relatively short sales cycle, you should aim to provide lots of reassurances and information to your clients. Lead them by the hand. In the SaaS world, customers are long term.
Sharpen Your Leads Qualification Strategy
All leads are not created equal. Not every lead you generate is fit or ready for a sale.
The degree of their readiness to buy your product varies. Some are willing to buy, but not ready. Some are ready but require a little more information from you before they take the plunge.
As a result of this, you should qualify your leads based on their willingness to buy. And what actions they took – maybe they signified an interest in your product or have specific questions to ask – that landed them in your leads net.
This would help you distinguish between leads who have taken a passing interest in your product and leads who are further along in your sales funnel. Criteria in qualifying leads vary from company to company. But many agree that leads have to meet specific criteria tied to revenue generation.
Don’t Underestimate The Value Of Customer Retention
One of the metrics used by many entrepreneurs to measure growth, is the acquisition of new customers monthly, quarterly or annually.
Whilst this may be an indicator of growth, it could also blindside you to potential areas where leads are leaking out of your funnel. To counteract this effect, you’d have to pay close attention to a metric established SaaS businesses use.
One such metric is customer retention. In SaaS, customers are long-term. So if you don’t work to reduce your churn rate, and retain existing recurring customers, your company might be losing out on a very profitable revenue stream.
According to Bain & Co, it was found that a 5% increase in recurring customer retention can increase a company’s profitability by 75%. In the same vein, it’d cost internet based companies 20% – 40% more to acquire new customers.
In conclusion, to increase your growth rate. You’d want to thoroughly educate your market. Share every needful information, and answer questions that might arise within them during the sales process.
Additionally, gauging the readiness of your leads and qualifying them for the sales process would go a long way in bringing highly interested and qualified leads into your sales funnel. Resulting in more sales, and a higher revenue stream to fall back on.
And lastly, pay attention to customer retention. Do this with the realization that it costs 6-7 times more to acquire a new customer than to retain an existing one – Bain & Co.
With the above, you are positioned to manage and deliver relevant applications, improve your business’s agility and foster steady growth through stellar customer support and lead qualification deployment.