What is SaaS Growth?
Software as a service is the idea of - generally - selling a cloud-hosted tool for which companies charge for monthly use. The idea evolves around monthly and annually recurring revenue, charging for the product in this way. What does the SaaS product do? It can do many things. The most common use is replacing a spreadsheet - so gathering and updating data on a specific topic. Another famous SaaS businesses is Canva, a design tool.
Growing SaaS evolves around growing its customer base: the number of monthly subscriptions. Scalability is a ground-thought of this business model. It's about trying to find similarities in the target audience and building a product that fits their needs. The idea is that those needs are similar, if not the same.
People subscribe and pay themselves via the product itself. That means that no - expensive - sales people are required. the product generally aren't incredibly expensive and to really grow the SaaS and become profitable lots of subscribers are required.
That doesn't mean it's easy to find these similarities and to build the product. The complete opposite is true. While developers sometimes build SaaS products as a 'side hussle' they quite often underestimate the difficulty of doing client research and translating those needs in a product they want to use. A second challenge is finding the right marketing strategy.
Especially developers quite often believe that a good product will sell itself. Launching means publishing your website, which holds a 'subscribe' button - but how will people even reach that website? SaaS growth is, in conclusion, more complicated that some might hope.
Lots of SaaS products replace spreadsheets, although there are exceptions.
Business models for SaaS businesses
If we look at the theory, there are roughly three business strategies to grow a SaaS. Product-led growth, sales-led growth and a combination of the two.
Product-led growth is the idea that a product grows itself. In other words, the 'user' learns about the product, and can click a 'subscribe' or 'create account' button on the website. They can pay by credit card. Automation is of the utmost importance for this business plan. Someone signs up and starts to receive automated e-mails depending on their characteristics and product features used.
Sales-led growth evolves around the sales team. Generally, they are products that you wouldn't buy paying with a credit card and where lots of stakeholders are involved in the buying process. Think about a security tool for a bank: the buying team isn't the only party involved in this situation. Compliance and legal also need to have a look at the product. Sales processes for these products are almost always long, and the tools are expensive and tailored to the buyer.
A combination is what they now call 'product-led sales'. It means that a basic version of the product is available for individuals Let's take Canva as an example again: I could sign up to start designing with Canva. But, and here's the catch, maybe my colleagues also have their own accounts. The trick for Canva is to upsell us to a company account that is more expensive but includes specific security options like Single Sign On.
Which one should you choose for your SaaS? Product-led growth seems like the dream: your product and website will be working for you. But be wary: building the right product is complicated. Consumers won't just line up to try and buy your tool, and setting up all automations - and tracking if they have the impact you want them to have - is time-consuming.
A marketing strategy for B2B SaaS
Regarding the marketing strategy, I can keep it quite short: it's about putting your objectives on paper. It's about planting a flag in the sand, one to run towards. That means that you research your target audience through and through, and really understand the problem you are trying to solve for them.
Making a marketing plan for B2B SaaS
What's the difference between a marketing strategy and a marketing plan, you ask? A strategy is about the long-term objective. Who's your dream client? What are their needs? A marketing plan is more tactical and short term: what content will you create and what channels are you planning to use this year to reach your target audience?
There are many marketing tactics at hand, and which one is best fit for your organization depends on what you sell. Some of the options you'll find it you ask ChatGPT are:
However, in my view strategy and tactics have been mixed in this list. If you ask me, the question is always:
What content do you need? What speaks to the buyer, and in what format can you best explain this? Video isn't always the answer, but I am a firm believer that people have different formats via which they prefer consuming content. Some people prefer doing so reading, others like watching videos. It's not difficult to cater to both: start by recording a video on a specific topic, and convert that into written LinkedIn posts or articles.
How should you distribute your content? This is about how you can reach your target audience, including the channel and whether you want to work on reaching them via ads or organically. The latter sounds nicer - quite often people think that sharing posts on LinkedIn or working on SEO is free - but you have to invest a lot of time and effort before you'll see any returns. Paid campaigns can speed things up.
Why the usual B2B SaaS growth strategies will probably not work for you
Most companies don't understand who they try to reach, they aren't consistent and they expect outcomes with the first marketing campaign. Let me give you a few examples:
Key metrics for measuring B2B SaaS growth
The benefit of SaaS businesses, is that you can track anything about B2B SaaS growth. Products are (usually) bought digitally, and so any step of the process - from the marketing campaign to the final buy - can be tracked. (Especially if your product is fit for product-led growth, meaning that it's a self-service product and there is no sales-interference in the buying process.)
So what should you be tracking? These are more or less the options:
Understanding these metrics is important for any SaaS business aiming for sustainable growth. But remember, these numbers are guides, not gospel. Your specific industry and business model might require a different focus.
That being said, when you listen to LinkedIn gurus they'll point out these metrics and many more. But you can argue that lots of them are vanity metrics to make marketers look good, or metrics that work well for businesses with lots of traffic. That doesn't make them fit for smaller organizations that start from scratch. If you only have ten clients, a churn rate doesn't necessarily say anything about your product.
So if your business is still small, please don't use these metrics to measure your B2B SaaS' growth. Instead, try to always combine the numbers with quantitative research - meaning: interviewing your clients, prospects and ex-clients. And when I say interviewing make sure that you only ask questions. Don't treat it as a sales conversation.
B2B SaaS Growth has to admit having "borrowed" this image from another company. I have no connection to them whatsoever.
Options for B2B SaaS growth by business model
Now, let's explore some of the most talked-about strategies for SaaS growth. Remember, these are tools in your toolkit, not commandments etched in stone.
1. Product-Led Growth (PLG) in a B2B context
While often associated with B2C SaaS, product-led growth has emerged as a powerful strategy for B2B SaaS companies as well. This approach focuses on using the product itself as the primary driver of customer acquisition, retention, and expansion, even in complex B2B sales cycles. Key elements of B2B PLG include:
Even in B2B, product-led growth can be a game-changer. When done right, it can dramatically reduce acquisition costs and accelerate your growth trajectory by allowing decision-makers to experience value before committing to a large purchase.
2. Customer success: The art of making customers happy (and profitable)
In the B2B SaaS world, customer success is not just a department; it's a growth engine. Prioritizing enterprise customer success can lead to:
Implement proactive customer success strategies tailored for B2B clients, such as regular business reviews, personalized onboarding for teams, and data-driven insights to help customers achieve their business goals.
3. Expansion revenue in enterprise accounts
Focusing on expansion revenue – increasing the revenue from existing business customers – is often more cost-effective than acquiring new enterprise clients. Strategies to drive B2B expansion revenue include:
By continuously delivering value and offering opportunities for business customers to expand their usage across teams and departments, you can significantly boost your B2B SaaS growth.
4. B2B content marketing and SEO
Content marketing plays a crucial role in B2B SaaS growth by:
Develop a comprehensive B2B content strategy that includes in-depth blog posts, whitepapers, case studies, and webinars tailored to your business audience. Optimize your content for search engines to increase visibility and attract qualified B2B leads.
5. Strategic partnerships and integrations in the B2B ecosystem
Forming strategic partnerships and developing integrations with complementary B2B tools can accelerate your SaaS growth by:
Look for partnership opportunities within your industry and prioritize integrations that add significant value to your B2B customers' workflows.
6. Data-driven decision making for B2B growth
Leveraging data and analytics is crucial for optimizing your B2B SaaS growth strategies. Implement robust analytics tools to:
By making data-driven decisions, you can continuously refine your B2B growth strategies and maximize their impact.
7. Efficient B2B customer acquisition
While retention and expansion are crucial, acquiring new business customers remains a key driver of B2B SaaS growth. Optimize your acquisition strategies by:
Focus on reducing your customer acquisition cost (CAC) while maintaining a healthy ratio between CAC and customer lifetime value (CLV) in the context of larger, more complex B2B sales.
8. Internationalization and localization for global B2B markets
Expanding into new geographic B2B markets can be a powerful driver of SaaS growth. Consider:
Conclusion: The future of B2B SaaS growth
The B2B SaaS industry continues to evolve rapidly, with emerging technologies like AI, machine learning, and blockchain presenting new opportunities and challenges for growth. Staying ahead of these trends and continuously adapting your strategies will be crucial for long-term success in the B2B SaaS space.
Remember, B2B SaaS growth is not a one-time achievement but an ongoing process of optimization, innovation, and adaptation to business needs. By implementing the strategies outlined in this guide and remaining agile in your approach, you can position your B2B SaaS business for sustainable, long-term growth.
Ready to accelerate your B2B SaaS growth?
If you're looking to take your B2B SaaS business to the next level, I'm here to help. With years of experience in driving B2B SaaS growth and a deep understanding of the latest industry trends, I offer personalized advisory services to help you overcome challenges and seize opportunities in the business software market.
Book a consultation today to discuss your B2B SaaS growth strategy and unlock your business's full potential.
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