Proven Ways to Grow a SaaS Startup Client Base

In any industry, understanding how to nurture and grow your client base is crucial. 

However, in some sectors, like the SaaS landscape, you’ll struggle to get anywhere if you can’t keep your clients from churning. 

Even if you have an amazing idea to sell, you won’t get far unless you know how to cultivate repeat clients, ones who are ready to advocate for your brand. 

Running a successful SaaS business means creating a client base full of committed, loyal customers. 

The more you can impress your audience, the more you boost your chances of earning a source of consistent, reliable income. Your loyal SaaS clients may even help you to find future customers through word-of-mouth advertising. 

So, how do you grow a successful client base?

Start by Knowing Your Audience

First, you’ll need a clear, specific view of who you’re trying to attract to your company. 

When you’re first getting started in SaaS, it’s tempting to focus your attention on a broad audience. You might think you can sell your accounting software to anyone who deals with cash flow.

 However, narrowing your focus makes it much easier to successfully market and sell your product. 

Think about the unique features of your product or service and the problems they can actually solve. 

For instance, maybe your accounting software is particularly well-suited to small companies and freelancers – or you have a great system for managing payroll in a company with remote and in-office workers. 

Knowing who your product is best suited for allows you to make your message resonate.

You can build your knowledge of your customer by:

  • Researching your competition: Who are your competitors targeting, and what do you offer that they don’t?
  • Speaking to people: Surveys and polls with existing or potential customers can give you an insight into who might be interested in your products. 
  • Creating personas with help from your team: Invite your team members to help you build an insightful set of user personas.

Thorough market research is the cornerstone of effective marketing.

Sell a Solution, Not a Product

As mentioned above, part of building a successful client base as a SaaS company is knowing what kind of unique features you offer and who they’re going to benefit. 

There are plenty of SaaS companies out there offering all kinds of great software solutions. What really makes a customer stand up and take notice is your ability to resolve their issues.

Now you know who your target audience is, think about the kind of problems they want to fix with your software. 

How is your employee-monitoring software going to boost productivity and reduce expenses for SMBs? 

 Why is your video conferencing software so much better at keeping remote team members connected than other competing brands?

Don’t just list benefits; let your customers know exactly which issues your solutions will fix for them. 

Offer a Scalable Pricing Model

If your customers love the services and features you offer with your SaaS solution, the thing that’s most likely to drive them away (aside from bad customer service), is a poor pricing strategy. 

Many SaaS companies struggle with choosing the right pricing model. 

To make your service as scalable as possible, you might start with a free trial service to get people excited about the features you can offer and prove your value.

 After that, look at the tools available from your competitors, and ask yourself how your solution compares. This will provide a base point for your pricing structure. 

If you sell different packages for companies of varying sizes, then make sure it’s easy for your customers to determine how much they need. 

For instance, do different packages come with unique features, or do you offer all features at each price level, but for different numbers of users?

You want to be able to serve your customers and grow.

Create a Feedback Loop

In the SaaS landscape, the majority of your income will come from repeat customers. This means you don’t just need to focus on finding new clients but keep your existing customers happy too. 

With that in mind, make sure your loyal clients have a voice. 

leading causes of churn in saas
Source: Retently.com

Regularly request feedback and testimonials from your existing customers. You can even offer discount codes and freebies to anyone willing to share their experience. 

Collecting information about what your clients like and dislike about your software will make it easier for you to implement meaningful changes to reduce churn. 

A strong feedback loop is also excellent for boosting your SEO with digital authority and attracting new customers through social proof. 

Remember, when you do get feedback, respond to it as quickly as possible. Even negative reviews deserve a thought-out response.

Measure and Prevent Churn

Finally, maintaining and running a successful SaaS business requires regular measurement and tracking strategies. 

You should have tools in place to help you track metrics like “Cost of Acquiring Customer” or “CAC.” You can calculate this by dividing the amount of money you spend on marketing and reaching customers by the number of clients you acquire. 

Churn is another important thing to measure because it shows you if you’re doing a good job of keeping clients happy. 

If you’re delivering the experiences customers want, then your churn should be low and steady. 

If you notice that more customers start to leave your business in rapid succession, this could be a sign that something’s going wrong with your software. 

Reach out to your audience to find out what the problem is, conduct exit interviews, and get to the bottom of your churn issues as quickly as possible. 

Sometimes, something as simple as adjusting a feature or changing your pricing structure slightly can make a huge difference. 

Growing a Strong Startup Client Base

Developing a strong startup SaaS client base can seem like a daunting prospect at first, but it’s crucial if you want to run a successful company. 

The better you are at attracting and retaining customers, the more your organization will be able to develop and grow. 

Remember, listen to your customers, measure churn, and focus constantly on delivering the kind of experiences your customers want most.

Ashley Wilson
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