If you’re going to grow in your business, then it is prudent for you to understand some key metrics to boost your growth.
To enhance their revenue generation, most of the companies across the world are opting for Software-as-a-Service (SaaS) model.
But why there is a need for SaaS? First of all, it provides a stable and dependable source of revenue. Secondly, it also provides mostly ignored expansion revenue which is the additional revenue generated by existing customers.
Furthermore, many SaaS service provider focuses on approaching new audiences. Is this an indicator of expanding customer base? Not yet, but enhanced expansion revenue will be efficient in bolstering revenue generation.
So, the given article will focus on key strategies which will bring significant improvement in your SaaS business and also enhance revenue generation.
SaaS: Arrival of a Glittering Software Model
As per the recent studies, SaaS is now a $600 billion industry. It is one of the most sought subscription-based cloud payment models which has a vast pool of users.
Besides, it uses expansion revenue model, which help you to not only secure new customers but also stand out among crowds in the most appropriate manner. Due to the given factor, an additional source of revenue is provided to the enterprise.
However, a question arises-“How SaaS business grow?” There are numerous factors contributing towards SaaS growth:
- Developing a product likened by most of the people
- Building a scalable marketing strategy
- Presence of high-performance team
- Enhanced investment in the product’s promotion
Nevertheless, don’t think it as a full picture. The software business grows by other procedures also- like venturing into the new markets.
There are various market-oriented strategies which help any SaaS-based business to move forward towards earning the right amount of revenue. There are numerous unique strategies to enhance your business fortune and are as follows:
A. Reduce Churn to Enhance Lifetime Value
What is the churn rate? It is the cancellation rate signifying the percentage of paying customers who have cancelled your availed services.
“The lower the churn rate, the better your customers are being subscribed to avail your services.” The given fact, in turn, increases your lifetime value and makes you the most valuable service providers among your customers.
Though your primary focus is on bringing significant improvement in your products or services to retain customers successfully, yet there are few things which you should focus on to reduce the churn rate. Some of these features are:
- Launching a Retention Marketing Campaign by highlighting the benefits of your products among your existing customers
- Bring Improvement in Dunning Process by permitting retry of failed credit cards for successful charging for multiple times (up to 3)
- Opting for a “win back” campaign to by enticing the customers back to your services through special discount or incentive offers
B. Incorporation of Expansion Revenue is Key to your Business Success
If you want to offer the best shopping cart to your customers, then make the expansion revenue as your main priority.
If you provide advanced features with expanded services, you can justify premium plans to the customers who want to upgrade their basic plan. Believe us; you will earn more revenue!
In addition to this, there are various tips to enhance your expansion revenue. Some of these are:
- The offering of Tiered Feature Plans with Exciting Features
- Add Value to your Premium Feature to make it more Enticing
- Let your Plan grow with Increase in Audience
So contact one of the reputed SaaS application development services which prioritize expansion revenue to make your business strategies more successful in retaining your customers.
C. Focus on Five Stars related to Tremendous Growth of SaaS-based Business
Everyone wants that there are a significant expansion and growth in their business. For this to happen, it is essential to focus on growth strategies associated with SaaS software model- “Growth Stars”. These are as follows:
- Monetization which implies turning your customers as the primary source of revenue generation by optimizing price plans
- Internationalization by ensuring the expansion of the customer base in every thriving global market via utilization of local language and currencies
- Moving Up-market by the inclusion of software users in the team decision planning and deals across the companies
- Moving Down-market by maximizing user signups to boost your revenues through effective promotion strategies
- Product Expansion towards new as well as existing customers through the provision of a complete platform solution
D. Improve Signup Rates to Enhance Revenue in SaaS Business
If you can lure more customers towards your services; then keep my words- “You will rule the world of cloud-based business.”
Although this is not rocket science, it still holds its sway across the business world!
Furthermore, expanding in the new market to attract new customers is a good idea, but sometimes it can be risky. There is no guarantee that additional effort works in the new market.
Instead, start by optimizing your actual signup process, which will result in the enhancement of the conversion rate among your prospective customers. For this to happen, you can try out a few things:
- Try better guarantee by refunding your services for a specified number of funds
- Try to conduct automated testing on the pricing page for its streamlined look & feel
- Test the signup process to reduce the things asked the customers
- Make charging options different for different customers
So from the given article, one thing is sure that the SaaS model is the best option for additional revenue generation for the companies. If you want to boost up your business growth, then evaluate these few tested strategies and see the results!