David Cummings on Startups

Ways to Grow a SaaS Business Faster

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David Cummings

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Earlier today we were talking about ways to grow a SaaS business faster. SaaS, with almost all recurring revenue, is a great business model once the machine is humming. SaaS is so desirable because it provides consistent cash flow and makes it easy to budget during growth. Thinking about the ways to grow faster, at the most basic level, here’s what we came up with:

  • Sign up customers faster
  • Sign up customers at the same rate but at a higher revenue amount
  • Up-sell existing customers
  • Reduce customer churn

Now that we have the most basic ideas, it is time to work on different strategies for each category.

What else? What are some other ways to grow a SaaS business faster?

Comments

4 responses to “Ways to Grow a SaaS Business Faster”

  1. Lance Weatherby Avatar
    Lance Weatherby

    Provide great service. It makes happy customers, drives word of mouth marketing, and reduces churn. Your LTV goes up while your CAC goes down. Cha-ching.

    Reply
    1. davidcummings Avatar
      davidcummings

      Great point Lance. Happy customers are invaluable.

      Reply
  2. Mark Barry Avatar
    Mark Barry

    Another way of growing a SaaS company faster is to clearly understanding the sales and marketing economics (the cost of sales and marketing in relation to the gross profit created by the sale). David Skok, General Partner at Matrix Partners published a great blog on this entitled SaaS Metrics – A Guide to Measuring and Improving What Matters – http://venturefizz.com/blog/saas-metrics-%E2%80%93-guide-measuring-and-improving-what-matters. David really drives to the heart of this.

    Reply
    1. davidcummings Avatar
      davidcummings

      Thanks Mark. That’s a great article and I’m a fan of David Skok’s posts.

      Reply

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