90% of startups fail or go out of business within the first few years, according to Forbes. This tragedy also affects startups that provide software as a service. According to a McKinsey and Company study, SaaS startups require annual growth of more than 20% in order to succeed.
There is a framework used in the SaaS industry called T2D3. The framework states that a SaaS startup must triple its ARR (Annual Recurring Revenue) for two consecutive years before doubling it over the following three years. As a premium mobile app development company India, we believe that this framework makes you sure that the start-up expands at a rate and becomes sustainable for a longer time.
So, if everything goes according to plan, your ARR could increase from $0 to $100 in 6 years. T2D3, however, is simpler to say than to put into practice. Learn how to bootstrap your SaaS startup in 2022 by using the information in this post.
You already had a concept and pre-sold it to your potential clients. At this point, we’ll assume that you’ve already identified a market and a product. Let’s talk about product/market fit, though, for those who are just starting out.
What is it then? Product simply means that you have a good that people in your target market will buy. The product should be feasible, desirable, and viable at the same time.
A viable product is one that you can realistically develop using your experience, expertise, and project funding from bootstrapping. Your SaaS product must solve a problem and be practical in order to be viable. A desirable SaaS product, in the end, means that a sizable enough market desire it.
It is simpler to proceed with a clearly defined strategy once you have determined who your SaaS product’s ideal customers are and have developed a product that meets their needs.
Using SEO marketing, you can cheaply bootstrap your SaaS startup. Content marketing is 62% less expensive than outbound marketing. In comparison to other marketing strategies, it also has conversion rates that are six times higher. Find low-competition keywords that can produce enough traffic to close your gap if you’re just starting out.
Learn the keywords and volume of searches used by your audience by using free tools like Ubersuggest and AnswerThePublic. Then, by concentrating on the bottom of the funnel keywords where customers want to purchase your product, you can determine the keyword intent.
It guarantees that you spend less time persuading leads and more time converting them. However, if you don’t use the right strategy, content marketing might take a lot of your time. Make sure your content is in-depth, supported by case studies and research, and focused on search intent if you want to rank highly.
Also Read : BEST MOBILE APP ONBOARDING PRACTICES IN 2022
Very few website visitors will convert after spending all the time to develop the ideal marketing strategy. if the website’s visitors come from the top and middle of the funnel. Fortunately, you can use Facebook and Google retargeting to reach the customers in a variety of ways.
According to studies, it may take customers up to nine visits to a website before they convert or decide to make a purchase, so you need to get in touch with these people once more. For the retargeting campaign to be effective, your offers must be very targeted to your leads. Customers may be given access to a product demonstration, video testimonial, free trial, or discount.
Your pricing page is where the magic happens to make sure it is completely conversion-optimized. A/B test the various ways, such as offers, plans, CTA buttons, and copy, that you can describe your payment structure.
Customers who are considering your SaaS product may become perplexed while looking over the pricing options. As a result, be sure to offer the fewest possible plans. Make sure the customers are aware of what they will receive from each offer. For instance, an A/B test conducted by HubSpot showed that a red “get started now” button generated 21% more conversions than a green one.
You should always pay close attention to what the customers have to say if you’re a SaaS startup. The best customer feedback strategy includes a variety of feedback at various levels. In-application feedback, exit surveys, one-on-one interviews, and periodic surveys are all options.
You might even start off by asking every new customer how they plan to use your SaaS product and how you can help them—this is the one thing that will never scale. According to research by Appcues, people enjoy being a part of exclusive groups like VIPs or beta-testers. Even creating a Facebook group is a good way to demonstrate your concern for your clients. You will receive a ton of invaluable feedback by creating a community.
You should now take the customer feedback into consideration. According to product/market fit, the best method of bootstrapping a startup is to modify your SaaS product based on customer feedback. Make sure to establish a startup culture that prioritizes feedback for the success of your business.
Customer feedback should be a top priority if many customers want a feature change in your SaaS product or if you plan to improve your SaaS product. Analyze each and every piece of customer feedback you receive. Why do customers want a product to improve, you might wonder. How can the SaaS product be enhanced both now and in the future? Don’t just let the feedback accumulate in a spreadsheet.
Instead, go above and beyond and contact your customers to let them know the product has been improved. Be sure to thank them for all of the feedback that got things started as well.
The seven steps listed above should help you bootstrap your SaaS startup in 2022. Your startup will be much simpler to bootstrap. Digital marketing, though, is constantly evolving. You must study more if you want to stay current.
Bootstrapping relieves the SaaS startup founders of pressure, allowing them to experiment with different methods of brand promotion. In order to successfully bootstrap your SaaS startup in 2022, make sure you adhere to the above steps.
In a business, it is common for customers to become dissatisfied and leave. But that does not imply that they have vanished. Make sure you are in contact with any churned customers. Maintain a file with a list of customer emails and occasionally send them offers for free trials and discounts. As an alternative, you can re-target them through Google and social media.
Next, learn the reasons why your customers leave. To improve the product and prevent the customers from leaving again, identify the typical or primary causes of churning. In this situation, customer feedback is particularly useful.