Sweet and Saas-y: Growth Hacks for SaaS Businesses

Sweet and Saas-y Growth Hacks for SaaS Businesses

Creating and growing a business from scratch can present many difficulties. This applies to SaaS, companies especially as this kind of business model does not commonly expand rapidly.

It is difficult enough to create a strong value proposition that generates interest from the targeted market which can often deter the notion of a company becoming an overnight success.  

EVAMAX has always emphasized the importance of assisting companies at all stages of development in acquiring the financing and benefits they need. It will help them advance to the next step of their operations. 

Listed below are a few growth hacks for SaaS businesses referenced from Entrepreneur.com. 

Providing a valuable incentive 

Many SaaS businesses, whether they are a start-up or already a developed company, will give something away in order to create interest around their service. The incentive provided must hold enough value and interest in order to convince consumers to use that particular service. 

Generic and common incentives, such as 30-day free trials or a MacBook giveaway, may create interest initially but will not be sufficient. It is vital to consider how you can get your customers involved and what you can do to get these consumers to market your product for you. 

Related: Top Ten Software Development Companies According to the GoodFirms

Dropbox, for example, initially used a referral program in which they gave away extra storage for each colleague you invited to join. Similarly, PayPal implemented a referral program where consumers were awarded $10 for each successful referral. 

By offering an incentive that directly relates to the service your business provides, companies are more likely to attract and retain customers as well as successfully grow the business. 

Related: Going International: Tips on Expanding Your Business Globally

Using the ‘freemium’ model to your advantage 

Offering your service or other components of your business for free is a great way to gain initial interest. Sometimes, a company’s value proposition or the actual service itself can be complex and difficult to understand. By offering certain aspects of your service for free, potential users can identify the value in what you are providing.

For example, Evernote, a software application for note-taking and organization, offered their service for free to grow and communicate the intended value proposition to its consumers.

After overcoming many challenges in the developmental stages of the business, they still utilize the freemium model today by providing their service for free while offering pricing plans for power users. 

All in all, consumers love free stuff and using the freemium model to your company’s advantage can pay off in long term benefits. 

Related: CRM Blockchain Startup Receives Funding to Launch New Platform

Creating compelling content as a means of differentiation 

For SaaS companies who plan on building their business with content, they must be fully committed to consistent and quality publishing. Without full engagement and focus towards creating quality content, consumers will be disinterested and you will not see the desired results.

The way you plan and deliver content can be a huge differentiator between your company and competitors. For example, Buffer app is a software application that enables customers to manage their social network accounts through building both their audience and brand.

When they first entered the industry, there were several other competitors in the social media tool market.

Related:Canadian Innovation Grants are Transforming Businesses Nationwide

As a means of differentiation, they created valuable content and shared it on social media which ultimately attracted a huge client base over time. Building an audience can take time but will pay off when you have developed a loyal following of consumers interested in your service.

By compiling a strong clientele through processes such as email lists, you can communicate your service and the value it provides to larger and interested audiences. 

Related: CryptoNumerics Financed Millions to Launch Big Data Analytics Tools

Partnering with competitors to strengthen your business 

In scenarios where it may be difficult to innovate or differentiate from competitors in the market, partnering with a competing company can sometimes be the best thing for your SaaS business.

When there are industry giants taking up a large majority of the market share, becoming a direct competitor with them can often create the path of most resistance. 

Related: CRM Blockchain Startup Receives Funding to Launch New Platform

A real-world example would be when Airbnb first entered the rentals, temporary homes, and vacation home market. Craigslist had already proved to be an industry giant and was dominating the targeted client base.

Rather than investing significant amounts of money into differentiation techniques, Airbnb placed their focus on coding their listings onto Craigslist.

Essentially, they asked users to upload their personal listings onto Craigslist so they were able to reach the large consumer base Craigslist had already developed. Now, Airbnb finds itself at the forefront of the rentals industry.

By leveraging the platform of industry giants, companies can find ways to ‘hack’ their way to growth and expansion. 

Related: The Benefits ERP Software Has To Offer Your Business

Promote exclusivity 

From a psychological standpoint, people always want to be apart of the crowd and current trend. Nobody wants to be left out of what the ‘cool kids’ are doing, which can ultimately attract consumers assuming you provide a compelling reason for people to use your service. 

Exclusivity can prove to be an excellent strategy, especially for SaaS businesses, as it allows you to scale your company without taking on the feeling of pressure.

For example, Edgar, a social media scheduling and automation tool, uses exclusivity to help bring value to their brand. From the company online home page, you are only allowed to create an email address in which you can request an invitation to join the service.

Edgar fosters a process in which the service is only available if you are shared access, creating an atmosphere of exclusivity that makes non-users feel like they are missing out. 

Applying to grants and funding 

In a time of rapid technological advancement and innovative growth, the government, venture capitalists, and others are more inclined to provide benefits and financing to companies than ever before.

As a matter of fact, the Canadian federal government offers one of the most generous tax incentive programs in the world through tax credits, tax deductions, and cash refunds. 

Related: Provincial and Territorial Research and Development Tax Credits

This applies to companies amongst a variety of industries who are partaking in innovative activities or projects seeking technological advancement. By acquiring financing and funding, SaaS companies will be more successful in scaling their services to the targeted market.

Related: Three Ways to Apply For a Business Grant in Canada

There is a significant amount of resources needed for companies to operate, especially for start-ups and developing businesses, that are essentially available for free. Businesses who take advantage of the grants and funding they are eligible for are more likely to be successful in growing their company. 

If your business is partaking in innovative projects or activities promoting technological advancement, contact EVAMAX today for a no-obligation consultation regarding the entitled benefits you are potentially missing out on.

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