4 Ideas to Increase the Customer Base of Your SaaS Startup
One of the most pressing challenges facing software as a service (SaaS) business is to attract as many customers as possible. The only way your SaaS startup can grow is when you have more new customers than non-returning ones. If not, you’ll end up being overthrown by your competitors.
The good news is that the potential customer base for SaaS companies is growing with every passing year. SaaS startup founders have access to a client base of 4 million people who use the internet daily. It is now becoming easier and cheaper than ever to develop a SaaS startup.
The secret behind most successful SaaS businesses is a subscription model. Customers are typically charged on a monthly basis for the services, which are delivered and stored within the cloud. This subscription business model ensures that SaaS startups reach profitability over a certain period if they provide constant value and keep their customers hooked for longer.
But most SaaS businesses struggle to find their early set of customers. So, how do you get people to see the value of your SaaS startup? What’s the best way to attract customers on a strict budget? Ultimately, these are the questions that pop-up in the mind of every SaaS startup founder. If you’re in the same boat and are looking for ways to catapult your SaaS business into a success, then keep reading.
Here are some easy-to-implement techniques and ideas to increase the customer base of your SaaS startup:
1. Implement a referral program
It is human nature to trust something that has been recommended by a friend rather than clicking on a random pop-up ad. 84% of the customers find a friend’s recommendation more meaningful and convincing.
This is why implementing a referral program for your SaaS startup can work wonders to increase your customer base. It is a great way to attract more signups to your platform. There are many case studies which support the fact that referral programs bring an instant surge in customer base. The popular SaaS business, Uber, handed out $20 credit to their customers in exchange for referring the service to their friends.
However, if you are a relatively new startup and don’t have the cash to spare, you can offer other valuable services. For instance, DropBox gave away free storage to their customers for referring friends and family.
Implementing a referral program is a foolproof way to increase signups. What’s more, it also keeps your current customers more engaged so that they keep on coming back for more, again and again.
2. Develop a content marketing strategy
Content marketing is essential for driving more organic traffic towards your SaaS startup. Intelligent content marketing strategies can lower your customer acquisition cost and save you money. The secret is to create educational and engaging content for your target audience that increases brand trust. It should have the power to convert readers into customers.
We are impressed with how Moz has created a reputation for its well thought out content. The website has an active blog, lots of authoritative guides, and Whiteboard Friday videos which work together to generate leads.
However, don’t forget to study the basics of content distribution. According to HubSpot’s VP of Marketing, Kieran Flanagan, you should spend 50% of your time on distribution after content creation.
3. Join an affiliate marketing site
Another great idea to increase signups on your SaaS startup is to join an affiliate marketing website. There is nothing as powerful as a top influencer with millions of followers endorsing your SaaS company.
Joining an affiliate marketing website gives you this opportunity, and it’s an excellent way to enhance brand trust and increase your customer base. What’s more, this tactic is essentially low-risk because you only pay your affiliate partners after a successful sale.
One of the most popular affiliates marketing site is Bluehost. You can choose from different influencers who are relevant to your service and gain more exposure. Having online influencers endorsing your SaaS startup will boost brand awareness and drive high-quality traffic towards your website.
4. Implement a transparent and easy-to-scale pricing model
Most SaaS businesses fail to grow their customer base just because their pricing model is too complicated. Users don’t have the time to spend ages trying to decipher all the options and hidden layers.
A messy presentation doesn’t help either. So, the key is to be as clear and transparent as possible. Ask friends or a focus group to take a look at your pricing plan and evaluate its user-friendliness.
Also, don’t underestimate the power of the right pricing model when it comes to attracting more customers. For example, some SaaS startups offer a per usage model where they charge according to the volume of their client’s customer base.
The more common one is the per-user model which depends on the number of people using the software as a service. This model is completely transparent and easy to understand. The subscribers can enjoy the unlimited activity on the software, and the company can also easily forecast costs.
Other SaaS pricing models include different features like per active user, flat-rate pricing, tiered pricing, per feature pricing, freemium and so on. Read this article to know more about how to select the best pricing strategy for your SaaS startup.
Bonus tip
With so many SaaS startups fighting for the customers’ attention, it is easy to get lost. To stand out from the crowd, you need to offer more to entice people to pay. A bonus tip is to offer a free trial to all your customers so that they know what they’re going to get before they enter their card details. You can prove your worth by giving your users a limited-day free trial.
Once your users get a taste of what your business has to offer and how it can help them, it will not be difficult to convert them into paying customers.
Conclusion
The key is to keep on experimenting with minor improvements. You never know which small change can increase turn up rates and entice more users to sign up. Each optimization plays an important role in accelerating the growth of your SaaS business.
Use these ideas for effective customer acquisition strategy and soon you’ll see big rewards. Jump-start the growth of your SaaS business today by trying out these simple ideas to increase your customer base.
Do you have any more ideas on how to boost your customer base and cut down the churn rate for your SaaS startup? Let us know in the comments!
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Mehul Rajput is a CEO and co-founder of Mindinventory which specializes in web and app development. He does blogging as hobby and has written a myriad of articles related to mobile technologies, startup, business, entrepreneur and app development.
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by +422,678 people.
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