In the previous post of SaaS business series, we have discussed the monthly recurring revenue and its different types. Now, we are getting to the main part that how to increment your MRR. That’s because it is a direct reflection of your business profits and helps in understanding your current business strategies.
To grow your MRR in the SaaS business model, you can try a number of trusted strategies. Below an overview of the most popular business strategies have been mentioned so read out carefully.
#1. Focus on product quality
In the SaaS business model, the product quality needs to be front and centric. It is a primary factor when your customers turn to get a subscription. However, after making sure that your product quality is top notch, you have to convey this message clearly to your customers. By having a Unique Selling Proposition, you can stand your product on its own.
To implement this strategy, constant communication is important. You don’t have to use power words to impress your customers, you just have to inform about your product and services to customers and how can your product change their life positively. Offering high-quality services with clear communication channels is the perfect way to increase your MRR growth.
#2. Raise your principal targets
Every SaaS company faces the challenge of product underpricing. It happens when solid pricing policy isn’t present to the backup business model or when business owners become self-conscious about their price range. The selection of underpricing will reduce the perception of your services in front of the public. So, as long as, you are offering quality products under the price, you don’t have to worry about losing your customers.
#3. Use effective expansion tricks
To increase revenue from your current customers is a vital part of a self-sustaining SaaS business structure. For this, you have to adopt good expansion tricks. Like, offering upgrades on your current product range will increase the number of customer retention. This will be a cheaper process than capturing new customers.
Upselling on SaaS model can be achieved using the following tricks;
- By offering premium service plans.
- By offering extra fees with increased fees.
- By offering specific/customized upgrades to different types of clients or subscription tiers.
- You can construct an advertising department to suggest your lucrative upgrades.
#4. Establish a healthy relationship with customers
This is common knowledge, but still, SaaS companies have been ignoring this strategy constantly. The frequent generation of valuable leads to increase customers acquisition numbers creates the problem of revenue allocation from your current customers only. The ideal manner to attract new customers is by targeting groups and by focusing on your marketing strategies. Your MRR will definitely increase if you use an effective customer acquisition strategy.
#5. Divide your features
If you have distributed all your business services features under one plan, then you are giving no room to your customers for expansion. Mostly, all the elements in the SaaS package are put aside so that customers can pick as per their choice. So, you should establish a core service; a baseline product stripped from all additional features. Then, offer those extras as different packages, or as add-on services.
By doing this you can bring more revenue to your SaaS business model. That’s why always offer upgrades on your service plans to people who want them.
Now, you know the strategies to increase the revenue of your SaaS business model. By following all these tricks, you can grow your MRR effectively, so now don’t wait for upstart growing your business right away.