SaaS (Software as a Service) companies have taken over in the modern era of subscriptions for everything. Digital advances allow various industries to provide their services to consumers all over the globe. They nixed outdated limitations and requirements so that consumers can get the software they need digitally and pay every month or another type of set payment scheme. Touted as “subscribeware,” companies vary from marketing, mobile services, communications, website hosting, and more. Now, there are thousands of active SaaS businesses globally, generating over $141 billion annually.
With a continuously growing and highly competitive landscape, how can one stand out in the race for the consumer’s digital space? Try these guidelines employed by SaaS marketing consultants on for size.
Don’t be afraid to charge.
A lot of the popularity that SaaS products get comes from their freeware that allows users to have the same services and full functionality without having to pay, essentially making a paid subscription an optional bonus with extra features. While this tactic is useful for establishing your brand and gaining traction and trust with consumers, don’t veer away from walling off some essential functions behind a price point that is worth it. Otherwise, too many users will not provide any revenue.
While you can count on some users to start a paid subscription simply because they enjoy your software, many would still rather stick with free versions, especially if there is no end period. Demo versions and trial periods have been noted to be a workaround for this situation. Good engagement combined with reliable pricing will net you your needed profits. Just take a look at some of the bigwigs in the industry, like Microsoft, Netflix, and ServiceNow.
Increase demand generation.
Your service needs to be known to potential users for them to subscribe. That means putting adequate strategy into leads generation and creating a cohesive follow-through plan that makes use of engagement and targeted keywords to provide repeatability and replication in demand and sales. How many users you can loop in will rely on how effective and timely your campaign is and how you roll it out. Doing so will convert your lead generation into an actual demand for your product as consumers learn the merit of your service and see how it cuts above the rest.
Know your metrics
To adjust accordingly and capture your audience, you need to keep a tight watch on your recurring revenue in contrast to your fixed expenses to keep your service running. On top of that, it’s crucial to have a good gauge on your customers’ lifetime value. That can help you map out your tactics and expansion as you predict what is keeping your loyal consumers and how many will still make use of your services in the years to come. It will be crucial in keeping your service relevant as technology continually shifts rapidly in the 21st century.
With these tactics, your company should be more well-equipped to rise above in the market. You can experience business growth and success in the coming years.