92% of SaaS businesses are expected to shut down within three years. Despite growth and funding, this occurs. Companies must be innovative, intuitive, and quick to succeed in the software as a service sector, which is a competitive industry. A SaaS startup experiences monthly growth of approximately 4.4 percent during its early stages. When the organization begins procuring a sizable income, it can hope to develop around 2% month to month as it were. SaaS businesses have looked into growth hacking as a way to get ahead of rivals as quickly as possible. We'll look at ten tried-and-true SaaS growth hacking strategies in this article.
What Are The Methods Of Growth Hacking?
Growth marketing, also known as growth hacking, is a generic term. It includes strategies used by businesses to attract as many customers as possible in a short period of time. Most of the time, smaller start-ups with smaller budgets use growth hacking. They want to expand their user base as quickly as possible while spending as little money as possible. Why software as a service (SaaS) companies use growth hacking strategies Software as a service companies pay their bills with subscriptions from their customers, whether they are paid monthly, quarterly, or annually. In contrast to companies that sell traditional software, which is becoming more and more difficult to find, SaaS businesses can start with much less money if they can quickly attract a large user base. Because they have to keep selling new software to new users, traditional software needs a higher growth percentage. Although SaaS businesses must also expand, their objective will be to keep customers on a monthly billing cycle once they have a large user base.
Ten Tried-And-True Growth Hacking Strategies For SaaS Businesses
1. Be discoverable
It's simple to make software, and it's even better if it meets a need that no other software can. The problem is that everything is wasted if no one knows about it.
Nowadays, it is common knowledge that getting new customers through online reviews is a simple process. Posting your business and getting some reviews is easy with online directories like Facebook and Google Business Profiles. You could offer a free monthly trial to get people to review your software if they sign up with an email address and then leave a review.
People will be tempted to test your software as a result, resulting in early reviews for your business. Google reviews (Source: Image) Before deciding whether or not to purchase a product, up to 59 percent of online users will read a review, and 54.7% will read four reviews. Strategies for inbound marketing that work.
2. CRO instruments
Taking into account that the principal motivation behind development hacking is getting however many supporters as quickly as would be prudent, the utilization of transformation rate enhancement apparatuses check out. Leaky sales funnels are one of a SaaS company's biggest problems. Worse if you get people to visit your website, but the bounce rate is very high. Utilizing CRO tools, you can improve your website's conversion rate for both new and returning visitors. For SaaS businesses that provide free trials, this is even more crucial. It is especially important to convert these PQLs (product qualified leads) into paying subscribers. Converting freemium software service users into paying customers has become a top priority for many SaaS businesses in recent years. When freemium users pay for the premium version, businesses may see a conversion rate of 2-5 percent, but the average is only 1 percent.
3. Make use of chatbots
Chatbots can be beneficial to any company. When it comes to growth hacking, the goal is to create a chatbot that can respond to all of a user's frequently asked questions. A chatbot's conversational tone not only makes users feel like they are being heard, but they also save money and provide a personalized experience. There is general agreement on this.62% of customers would rather talk to a customer service bot than wait for a live person to respond. Additionally, according to another Hiver study, 37% of respondents rate their experience with customer service as satisfactory when their issues are resolved promptly. The data do indicate that chatbots do improve your website's conversion rate, but the degree of improvement varies greatly from industry to industry. It tends to be anyplace between 10-100%.
4. Engage Customers
Transparency is essential for any business. There must be a very thin line between customers and the business because every customer wants to know more about the products and services they are using. Customers should be well-informed about all of the terms and conditions, company policies, prices, and facilities that are offered so that both the provider and the customer have a good understanding of the services. The conversion of visitors into paying customers is the primary objective of SaaS businesses, and in order to accomplish this, the product must be user-friendly.
The following are some interactive strategies for satisfying customers:
Offer free trial sessions It takes a lot of work to convert a new customer into a regular one. Users are drawn to free things often, and free trials are no exception. Customers are introduced to the software through free trials. It aids them in deciding whether or not to continue. However, in order for the software to be more productive, these free trials should last no longer than 15 days. Slack, one of the most widely used enterprise collaboration tools, has one of the highest SaaS company growth rates ever recorded.
Make use of referral advertising. Referral marketing can help you rise to the same heights as Dropbox, Uber, Airbnb, and PayPal. These were the people who transformed them from humble beginnings into multibillion-dollar enterprises. Paying more for paid advertising was out of the question for SaaS startups. One of the most effective quick-and-cheap SaaS marketing strategies for generating effective leads is referral marketing. The lifetime value of a new referral customer is 16% higher than that of a non-referral customer. Gifts and rewards. For ordinary and faithful clients, the organization can begin projects to give a few respectable offers and advantages. This not only attracts new users but also deepens relationships with existing clients. Users who are following the brand on its social media platforms may also receive a discount of 10 to 15 percent. Second, try to offer exclusive deals to users who deserve them. Be different, and try to make a different offer that fits the company's criteria. The product's growth can be furthered through the use of a variety of discounts and schemes.
According to 45% of businesses, giving customers gifts strengthens relationships.
5. Impact of forces to be reckoned with
Force to be reckoned with promoting is developing bigger consistently, and there has never been a superior chance to begin utilizing it. In 2019, influencers were utilized by 55.4 percent of businesses and marketing agencies. It is anticipated that this percentage will reach 72.5% by the end of 2022.
People who trust the opinions of influencers typically already have a large, well-established following.44% of Generation Z customers rely on the advice and recommendations of influencers when making purchases.
6. Combining service with enjoyment
SaaS businesses typically attract customers. Easter egg marketing is the practice of hiding jokes or additional features within software for users to discover. When they update their logo, Google enjoys doing this during the holidays. The process of visualizing so-called gaming elements like competing against other people, game rules, scoring marketing strategies, and engaging goods and services is known as gamification. Gamify your tool as a growth hacking software (Source: Image) Salesmachine is a great illustration of software that is both entertaining and well-designed. Salemachine is able to automate customer interactions, offer health scores for customers, and identify your top PQLs. The exquisite design is what sets it apart. It is colorful, simple to comprehend, and provides live analysis at any time.
7. Taking care of public reviews
It is necessary to analyze all customer feedback and insights in order to build the business and shape it.
Not only does it help to improve the product as a whole, but it also helps you learn what your customers want from your brand. A separate FAQ section where customers can upload all possible answers should be provided by a SaaS company. Companies can also use various platforms like Quora to answer all customer questions. 84% of people rely on online reviews. Positive feedback will quickly increase organic traffic to your software and business. Additionally, these well-known Q&A platforms, such as Quora, can assist in raising public awareness of the brand. Customers' concerns should always be addressed, suggestions should be implemented, and feedback should be respected by service providers.
Surveys or online forms can be used to gather feedback in a variety of ways. This acts as a bridge between what customers want and what suppliers do. In addition, it guarantees the supplier's client loyalty.
SaaS businesses are greatly influenced by their identity, or brand names. As a result, maintaining a positive image on social media platforms like LinkedIn and Facebook is crucial. In order to boost social media content, various blog posts and email marketing campaigns are utilized. It is crucial to have a large number of followers on well-known websites. This not only contributes to public awareness but also connects you to the entire world and educates you about social trends. This makes virtual entertainment one of the most incredible ways of advancing SaaS organizations. Be that as it may, it might sound outdated however getting SaaS items highlighted in a public statement is likewise a significant development factor. Reviews and content from SaaS businesses ought to be published on a variety of platforms as well. It is possible to keep users interested by publishing press releases, articles, and reviews on something like the Play Store or the Apple Store.
9. Content marketing strategies
Proper content marketing strategies have been shown to be highly effective business strategies across all industries. In addition, it is an extremely cost-effective growth hack. As you produce more content, you will receive more visitors. This is the ideal situation for any growth hacker because you are bringing in new visitors to your website without charging them anything! But what's the best thing? High-quality content generates more leads than paid advertising, exactly three times more. The Cushion Application is an incredible illustration of this development hack. They produced high-quality content in a short amount of time to boost their online visibility. You can quickly find informative articles of high quality on the Buffer blog about marketing, business, and social media. Additionally, high-quality illustrations should not be overlooked.
10. Leverage the effects of integration on the network
When you get to the heart of the main SaaS problems, you'll find that many users don't see the value in the software and are often reluctant to abandon their current methods. As a result, there is a demand for platform-based software with a wide range of plugins and integrations. The phenomenon known as the "network effect" occurs when more information, data, and content are produced when a product's value to customers increases. A collaboration between technologies may be the cause of this phenomenon. Network effects are to blame for 70% of the value that tech companies generate. Businesses gain a competitive edge and improve overall operational efficiency and quality through SaaS integrations. An integration shop like WordPress, Slack, Salesforce, etc. You could make it easier to connect to well-known platform-based products or create plugins. Begin growth hacking right away!
There is no doubt about the fact that SaaS businesses that want to expand must employ growth hacking strategies. However, a common misconception is that these methods are governed by predetermined rules. Techniques for growth hacking will vary based on the type of business and budget. Growth hacking ought to be a top priority for SaaS companies with low budgets in either case.
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