If you are running a SAAS product business or team, there is no denying that your growth strategies will be crucial to your company's success.
Growing at the appropriate rate can mean the difference between being profitable and not.
But what are some things one can do to grow a SaaS product or business?
Here are three sample strategies:
1. Test new features or ideas
New features might seem like something that would only appeal to current customers, but they have a much more significant effect on retention rates than any other tactic.
By testing new features with different customer segments, you can decide which part prefers them best and focus on future development.
Some great examples of SAAS testing are Intercom, which constantly adds new features to their product to see if they can help solve their customers' problems.
Another great example of testing is HelpScout's survey popup feature that allowed them to gather valuable information about why people were leaving and how to improve.
Some SAAS idea testing examples are :
- survey popups on signup forms to find out why people are not converting.
- A/B testing of new product features before they are rolled into production.
Once you have tested the feature with a segment and found it successful, you can roll it out as a permanent feature.
2. Create a free trial.
A common strategy is to encourage users to sign up for a free trial and convert the user into paying customers later.
Incentivize customers with freebies and discounts for those who signup as early adopters of your product.
This also works well with an enterprise business model, where every user is worth way more than the average user.
You can also try to give away a ton of your product for free but put an expiry date on it to incentivize users to upgrade quickly before the offer expires.
This works well if you have either an enterprise or consumer business model where each customer is worth way more than the average customer.
This is a typical product strategy used by companies like Intercom, Zendesk, and Optimizely to encourage users to sign up for free trials.
Firms can also use this opportunity to improve their product based on feedback during trial periods.
3. Build on existing networks
One successful example of building on existing networks is Dropbox.
The service was built to make file sharing easy enough that users could be comfortable storing all their files in Dropbox, even if they needed to collaborate on them or share them with people outside their social networks.
It's usually better to concentrate on only one or two strategies at a time and then evaluate their results than to try to develop the perfect growth strategy for a SaaS product or business.
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