SaaS Growth Strategies

February 2022

Welcome to The Cirrostratus Group February newsletter.

I've talked in many past newsletters about the impact of Artificial Intelligence (AI) on SaaS. This article crisply articulates how AI is impacting SaaS. One quote from the article sums it up very well. "When SaaS is combined with AI capabilities, it enables businesses to extract better value from their data...".

The article also highlights other AI enabled SaaS capabilities such as automating and personalizing services, improving security and providing improved and customized customer experiences.

Looking for ideas on how to improve the growth rate of your SaaS business? Great ideas below!

Paul Ressler

The Cirrostratus Group

Traits of Fast Growing SaaS Companies

Openview Partners has taken the data from their SaaS provider surveys and analyzed it to understand some of the key traits of fast growing SaaS companies. Here are some of the highlights:

Efficient at acquiring new customers
More likely to use usage based pricing
Successfully retain and expand existing customers
Intuitive and easy to implement and use

From a metrics and financial perspective these traits imply:

Low Customer Acquisition Cost (CAC)
Negative Customer Churn percentage or Customer Retention Percentage about 100%
Low support and professional services costs

There are lots of good thoughts and information in the article.

SaaS Growth Strategy - Communities

Whether you currently have a community for your product or are considering one this article has some excellent practical examples of how to grow and leverage your community. Although a community requires some time to develop it can be a real asset in achieving low customer acquisition costs. But, most importantly, it helps with growing existing customers. Both of these are key traits in fast growing SaaS companies as outlined above.

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