Growth strategies for small B2B SaaS businesses
Countless major B2B SaaS providers have started out as small SaaS businesses.
They have succeeded in the market by using clever growth strategies.
The pressure is on small B2B SaaS business owners to do the same and help their companies grow and reach new users.
In this article, you will read about growth strategies that can help you achieve great success.
Offer free premium
Offering a free version of your software is a key strategy for small B2B SaaS business growth.
Free Features is a powerful marketing tool. They immediately show the value of your SaaS to the business and attract new users because it involves no financial risk.
You’ll find potential customers, and businesses will get a free tool they can use.
If you want to increase the number of your users, you do not have to spend on expensive campaigns or special sales power. Your freemium users are already in your sales funnel
Once freemium users sign up, your only concern is to upsell them.
Slack pulled off this technique nicely.
They have released a free version that has become an essential business tool for instant communication.
Since it was free, thousands of businesses have tried it and have finally upgraded
On average, Slack converts 30% of their freemium users, and according to their latest Press releaseThey have 156 000 paying customers.
To create a nice freemium experience, you must create two things.
First, you need to decide which feature is the key functionality of your SaaS. This feature is the most significant value that will drive businesses out of your SaaS.
It should be something that makes your sauce essential. Slack did not invent chat or video calls, but made them easily accessible to their team.
Then, work on the features that you want to pay for your customers. Look at the features that will make businesses more efficient as an extension of your freemium
For example, Slack’s payment features include priority support, complete message history, and more file storage per member.
Let’s talk about another fantastic growth strategy; Promotion.
Create a referral program
Creating a referral program is a great way to grow your SaaS.
You will be able to reach and convert customers cheaper than other marketing methods.
When you are converting via referral, you will only pay when a prospect signs up for your service.
As a B2B SaaS provider, this payment often means offering a free monthly service or limited time upgrade.
The most famous story of the success of the referral program is Dropbox.
They designed a referral program to provide free 250 Mb storage space to referrers and mentioned possibilities.
They grow by a stunning 3900% in just 15 monthsEven without hiring a full-time marketer.
Referrals specialize in raising SaaS awareness. They encourage your satisfied users to spread the word about your software and take an active interest in it.
They will tell their colleagues and partner companies about your new SaaS solution that can improve their business.
Here’s how to create a SaaS referral program that works.
Set goals for your referral program. Take a clear step that you want your referees to complete in order to reward them and your referral users.
This could be signing up for your SaaS or downloading your SaaS app.
Second, choose the right incentive for your users.
Give them something valuable to go the extra mile and send recommendations. SaaS providers usually offer premium upgrades or discounts.
Finally, simplify the referral program. Enable your referrers to send custom code or a referral link.
Create educational content
The basis of educational content Attract new users and grow your SaaS.
When you write content that educates your potential users about a problem, they will look to you for a solution.
If your content covers specific industry topics, then the users who engage with it are probably from the same industry. Ideally, they would be business decision makers.
Instead of spending money on advertising to reach them, you will tempt them.
Once they first feel the value of your content, they will trust you enough to try your software solution. The number of your users will increase.
Creating quality niche content will also work wonders for your SEO.
Whenever users google for related content or there is a problem that your SaaS can solve, your website will come up in search results.
If your website has more educational content, it will have a more significant SEO impact.
To make this strategy work, start with a blog.
According to a Content Marketing Report, 85% of the most successful SaaS companies have a blog. Blogs are the ideal platform for publishing insightful content.
They play an important role in educating your users and attracting newcomers to your SaaS.
If your solution helps a business succeed, writing a case study will prove to other similar companies what your solution can do.
Once they see the numbers, you will persuade them to try your SaaS and improve their business.
You can also write PDF guides for your users.
They will help inform the current state of their industry and suggest solutions.
Leverage team planning
A great way to increase the number of your users is to take advantage of the team plan.
This strategy allows you to bundle your users in groups to close deals throughout the business.
The size of the user group depends on the size of your client’s group. Since it can vary from business to business, it is important to adjust your price to the size of the team.
This method verifies the price difference between different service packs.
As your client businesses grow, they may upsell in a larger service pack. More of their employees will use your SaaS and your number of users will increase.
The whole company will rely on your software as a standard business tool, much like Dropbox or Slack.
To implement this strategy, divide your value into 3 groups: Small, medium, And Large
Adjust your pricing so that the smallest group of users pays the minimum for a monthly SaaS subscription and scales your pricing according to team size.
Let’s say the 3 pricing groups for your solution start here:
- $ 40 / month, up to 5 team members
- $ 80 / month, up to 15 team members
- $ 150 / month, up to 30 team members
As clients choose larger groups, the cost per member decreases. Smaller companies may pay less for a solution that matches their team size.
Let’s discuss the last growth strategy for your SaaS.
Maintain steady revenue growth
Make sure you Increase income It is important to be stable for your long term well-being.
As your small business grows you need to have an income that you can rely on to adjust its growth.
Regardless of the number of your users, there will be overhead costs and costs to develop additional SaaS features for your company.
Without a steady increase in revenue, you will not be able to finance it.
Think of it as an exaggerated business strategy for your small B2B company; This will help you to map the steps Improve your SaaS income.
With that in mind, here are some of the best tips to ensure your income grows
You must first enable annual billing for your SaaS subscription.
When clients sign up for the full year, they will invest even more in using your software because they pay for the long term.
They are also less likely to give up a month or two on subscriptions. By paying clients annual bills, you have secured the paying client for one year.
The second important tip for steady growth is to improve your onboarding process. When you properly onboard your users, they get the full benefit of using your software.
If you ship them badly, they may quickly become frustrated with your solution and abandon it.
Lastly, always track the number of new users and evaluate your revenue growth quarterly.
Scaling your small B2B SaaS business is a complex task; The market is ruthless, and the competition is fierce.
However, if you are tactful about your growth, you have every chance of winning the solution.
Apply these strategies slowly, and you will see your small business succeed.
Ashley Wilson is a digital nomad and writer for hire, specializing in business and technology. During her self-care, she practiced yoga through YouTube. He is known for referring to movies in casual conversations and enjoys trying new foods. You can communicate through Ashley Twitter.
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