The SaaS market has expanded at a fast pace in the past decade, with providers expected to generate $157 billion in sales over the course of 2020.
With more and more high-quality operators emerging to offer a variety of services to businesses and consumers alike, there is a whole heap of competition in this segment. So what are the elements that separate the best performing SaaS companies from the pack?
Compelling websites
Not all SaaS websites are created equal and this is an especially important aspect because a site will not only be a storefront for the service but will also often double up as the point of access for users once they have signed up.
Well designed SaaS websites are able to grab the attention of first-time visitors with effective use of content, CTAs and service information while also being intuitively designed so that it can act as the dashboard for the service itself.
Of course, a website that is well optimized to appeal to prospective customers and existing users is vital to almost every modern business, but it is particularly pertinent in the context of rapidly growing SaaS companies.
Customer retention
Some providers might boast of head-turning customer acquisition figures, suggesting that there is a good head of steam building up behind their service. However, this may overlook the fact that they are also hemorrhaging users shortly after they have signed up, and it is known that retaining customers is actually more conducive to growth over time.
This is certainly true of the SaaS market, where the firms that are consistently managing to impress with profit reports are those that pay attention to keeping current customers onboard, rather than only worrying about where their latest crop of conquests will come from.
Marketing spend
Even though customer retention is important, it is also clear that the SaaS companies which have the biggest clout at the moment are not afraid of throwing plenty of resources at their promotional efforts.
The more money that is spent on marketing, the greater the sales growth that can be achieved in short timeframes. It is clearly important to make sure that there is enough cash available to dedicated to increased advertising expenditure, but there is no denying that it is a trait of many up and coming providers.
Mission-critical products
This is arguably the most important weapon in the arsenal of any ambitious new SaaS company since it is by making its services indispensable to customers that solid growth is possible.
It is no surprise that the biggest SaaS services are mission-critical to businesses, managing everything from data storage, backup, and security to employee collaboration and communication.
That is not to say that there is no room in the market for cloud-powered software solutions that have less crucial functions; it is simply the case that the companies which are making the most significant impact at the moment are those which play a key role for customers.
