— July 14, 2017
McKinsey research shows that any SaaS company that grows at 20% has over 90% chance of extinction in the next 5 years. In other words, failure to attain at least a triple digit growth rate for software companies is not a good sign. So how can SaaS companies improve their customer acquisition rates? Here are a few ways SaaS companies can achieve better growth rates.
1. Build engagement
Before someone can reach their wallet and make a purchase, they have to engage with your brand in the first place. It is very unlikely that a first-time visitor will make a purchase the very first time they come across your website. According to McKinsey majority of buying decisions (70%) are attributed to customer experiences with the brand. In simpler terms, cultivating customer engagement with your brand can increase your sales by 70%.
2. Know your customers
The first marketing strategy of any marketer is to know their customers. What are their problems? What type of devices do they use to access the internet? What do they search for, how and where? Doing this will help you to segment your customers accordingly; hence, help you to craft an appropriate marketing message. So you have to create a message that is customer-driven.
3. Aim for targeted traffic
Sometimes traffic is useless if it is not targeted. What is the point of having 10,000 visitors with a conversion rate of 0.001%? It is better to have a traffic of 100 visitors with 20 conversions. When it comes to metrics, look for engagement and usage because that is they only way to know whether you are getting the right traffic.
4. Create a compelling value preposition
Try to explain your value proposition to your potential customers. When potential customers come your website, you only have a small window of opportunity to convince them to buy. So be sure to create a compelling value preposition. Explain how your product is going to solve their problems and why they need it NOW. If possible, talk to your customers to find out what they truly want.
5. Go for partnerships
The harsh reality of today’s business environment is that brands can no longer operate in isolation. So it is critical for businesses to create sustainable business models by building partnerships with other brands. Your company can gain new market shares by developing the right synergies, marketing joint ventures and strategic alliances.