When first launching a SaaS business, it makes sense to start small and make sure your solution really works before rolling it out on a larger scale. One easy place to start is with a local audience, where you have connections and a deeper knowledge of the needs of the market. However, if you focus on a narrow audience for too long, you may be missing a significant opportunity. The unique nature of SaaS gives you the ability to reach beyond your geographic area, and even go beyond your native country to wherever software customers take you. Expanding your thinking–and market–across national borders is not just advantageous; in the competitive, global SaaS industry, it’s absolutely necessary Tweet.
Here are 3 reasons you need to think globally to stay competitive as a SaaS provider:
1) Expanding Beyond Your Borders = Greater Opportunity
Let’s start with the obvious: targeting a global market for your solution means an increased audience, and more potential for business. For businesses that deal in physical products or services, the barriers to global expansion can outweigh the increased market advantage, but that is not the case for your SaaS solution.
Because your solution is cloud-based, the software is typically accessible from anywhere in the world. In addition, digital payment methods have significantly reduced the financial barriers to expanding beyond your own borders. As a result, you can offer your solution to global audiences without much additional effort. With the global SaaS market expected to increase from $49 billion in 2015 to $67 billion in 2018, limiting yourself to domestic audience means cutting yourself off from the huge opportunity offered by the international market.
2) The Competitive Landscape
Even if the potential opportunities don’t move you, the risk of losing market share to your competitors should.
Put simply, SaaS providers around the globe are quickly recognizing the opportunities of a “flatter” world, and are beginning to to expand their services to wherever the market takes them. U.S. audiences have long been accustomed to SaaS pricing models, and global audiences are beginning to follow suit.
For example, foreign SaaS solutions like SAP are now firmly established in U.S. businesses, crowding the competitive space. As a result, thinking globally when it comes to your market is becoming a key – if not the key – factor in ensuring the continued growth of your business.
3) Rising Expectations
Finally, don’t forget about the fact that, depending on the specific nature of your solution, it might be used by multinational corporations who need to access and manage it from a variety of countries.
Think about it from your audience’s perspective: for example, you offer a financial services solution that helps businesses organize their payroll. To attract larger customers – with international operations – you need a solution that can manage payroll for multiple jurisdictions. If your solution stops working at the border, or can only calculate payroll for one type of currency, it is of little use to anyone with operations outside of your native country
Rising expectations, along with the competitive landscape and an increasing lack of borders, are significant factors in why your SaaS company should think globally. Of course, you should not blindly dive into the international market — but developing your software with global audiences in mind can help your business succeed in the long term.
Avangate powers modern Digital Commerce, solving the complexity of online commerce, subscription billing, and global payments for Software, SaaS and Online Services companies. Backed by a proven cloud platform, unmatched expertise and a depth of digital commerce services, Avangate helps digital business leaders drive the fastest path to revenue, maximize the value of every customer, and expand global reach. Contact us for more information about how our digital commerce services can help you grow your business.