SaaS balancing The company is tougher today than it was a few years ago. No matter what stage your company is at, a nearly 70 percent drop in public SaaS stock prices, increasing liquidity constraints, and shrinking company technology stacks make for a more challenging path for the fast-growing sector by default. .
Naturally ambitious SaaS founders and operators don’t want to give up on their growth ambitions even in an economic downturn. There is no reason for them to do this. The reality is that VC funding is not a prerequisite for retaining customers and growing consistently.
However, there is no doubt that traditional growth drivers like digital advertising and large sales teams may be too expensive or unreliable in the current climate. There are still growth opportunities out there, but founders and operators need a new strategy if they want to continue growing through the downturn. The main thing is to focus on size In sustainability Touching the most neglected and low income sources.
If your CX isn’t tailored to global customers, you’re leaving critical gaps in your offering and seeing potential sales fall through the cracks.
As a payment infrastructure provider for SaaS businesses, I’ve helped thousands of software companies over the past 10 years, and we see financial metrics for 30,000 subscription companies. Based on this experience and analysis of our data, I believe there are three growth drivers that are often overlooked by SaaS leaders that every company should examine.
Focus on recession-proof revenue expansion
Encouraging businesses to acquire new customers may seem counterintuitive, but the truth is, delighting existing customers—and generating new sales from them—is easier and much cheaper than acquiring new customers. This is especially true these days, because many buyers are hesitant to spend money to try new devices.
That’s why SaaS companies need to focus on expansion revenue – additional revenue later The customer’s first purchase. This basically means getting your customers to spend more than they did last month. Our data shows that the world’s most successful subscription companies generate 20% of new revenue from existing customers, but many businesses generate close to zero.
This is the result of what we call “sales brain”—a misguided mindset that sees the sale as the end goal rather than the beginning of a long-term process.
Here are a few ideas that SaaS leaders can use to maximize their expansion revenue.
- Add advanced levels to your price, pushing important features to more premium levels. Our research shows that they have the top 1% of developing apps. 16 Pricing tiers, so don’t be afraid to charge for the most popular devices in your platform.