Building a SaaS growth strategy
A Strategic blueprint for SaaS growth: Part 1/2
In this two-part SaaS growth series, I aim to deliver a roadmap for SaaS companies looking to either construct a new growth strategy from scratch or pivot their existing approach for expedited growth.
In this first post, we’ll delve into the essentials of crafting your growth strategy and laying down clear objectives to drive it.
The essence of a SaaS growth strategy
A growth strategy isn’t merely a wishlist; it's an orchestrated plan of action. While crafting one isn’t rocket science, it necessitates close collaboration among key executives and stakeholders. It also requires both time and intellectual rigour. Utilizing a tried-and-true framework can streamline the planning process, helping you focus on the most impactful elements.
From opportunistic to strategic growth
A well-defined growth strategy transforms your approach from being opportunistic—essentially reacting to whatever opportunities come your way—to being proactive and intentional. This shift is pivotal; it puts you in control, enabling you to build the business you envision rather than settling for ad hoc developments.
Goals: The cornerstones of your growth strategy
When defining your objectives, it’s crucial to think long-term. Where do you want your SaaS company to be in 3-5 years? These overarching goals serve as your North Star, shaping the strategic decisions that follow.
Here are some goal-setting guidelines:
Revenue and market share: Are you looking to double your revenue or perhaps aiming for a specific market share percentage?
Customer acquisition and retention: Do you aim to lower churn while increasing customer lifetime value?
Product and service improvements: Are there key features or services that need to be developed to make your offering more competitive?
Asset accumulation: Are there technologies, talents, or intellectual properties that you aim to acquire?
Your subsequent moves should be congruent with these objectives. This alignment ensures that every decision, big or small, contributes to the bigger picture. Moreover, goals should be S.M.A.R.T – Specific, Measurable, Achievable, Relevant, and Time-bound – to allow for periodic reassessment and adjustment.
Let’s take a look at a product-led growth strategy case: Atlassian
Atlassian, the company behind popular products like Jira, Confluence, and Bitbucket, serves as an excellent example of a SaaS business that has successfully executed a global growth strategy.
Founded in Sydney, Australia 2002, the two founders started the company through bootstrapping and held a credit card debt of $10,000. In 2022, the company generated $2.80 billion in revenue and it has over 10 000 employees today.
Self-serve, do-it-yourself software
Before the SaaS business model even existed, Atlassian adopted a "no-sales" strategy from the outset, focusing instead on building robust, user-friendly products.
They invested heavily in content marketing and SEO, driving potential customers to their site, where they encountered rich educational resources and free trials.
Community-driven growth
Atlassian recognized the power of community early on. They developed a range of ways for users to interact, share best practices, and even contribute add-ons to their marketplace.
This created a virtuous cycle where community members became evangelists, contributing to organic growth.
Price tiers for all budgets
To cater to businesses of all sizes, Atlassian introduced a tiered pricing model.
This allowed smaller companies to get started with a basic version, with the option to upgrade as they scaled, effectively capturing both SMB and enterprise markets.
Localizing for global reach
Atlassian also adopted a comprehensive localization strategy that went beyond language translation.
They adapted their payment systems and customer support to cater to regional preferences, ensuring a smooth customer experience across different geographies.
Measurable success
Atlassian went public in 2015 and boasts strong financial performance, showcasing the effectiveness of its unconventional, customer-centric SaaS growth strategy.
Conclusion
Embarking on a growth journey without a well-defined strategy is like sailing without a compass—you might move, but not necessarily in the direction you desire. In this first post, we've laid out the groundwork for setting up a growth strategy for SaaS companies aiming to go global.
In the next part of this series, we'll dive into how to differentiate your SaaS business in an increasingly competitive market and explore some key growth strategies.
Check out the second post in this series on SaaS growth models and metrics.
