Rethink Commerce Blog

5 Ways to Increase your SaaS Customer Acquisition Rate

Posted on April 9th, 2015 by
An effective strategy for customer acquisition and user retention lays the foundation for your brand’s longevity in the marketplace. The biggest challenge that SaaS business owners face today is the rising cost of customer acquisition. If you want to grow your SaaS business, you have to understand how you are attracting and converting visitors into customers. Here are some points you should keep in mind on ways to increase your acquisition rate.

1. Make a great first impression

What does every customer want from a business? A product or service that makes their life easier and exceeds their expectations. That means, to garner new customers and to maximize your ability to add new buyers to your growing client base, you need to make a fantastic first impression on the marketplace. This first impression needs to be backed by solid user experience and service support that demonstrates to the customer that they made the perfect decision by choosing you.

2. Understanding the market

Knowing what is happening in your competitive market space, how your customers evolve and what they are seeking from you – these are all key pieces of information you should be aware of at all times. Knowing your audience is the very first step in ensuring that your business, its products/services are delivering what the customer needs. When you provide a solution(s) to your customers needs, you enhance the likelihood that potential buyers will choose you over your competitors. Result, your customer acquisition rate is increased. A great side benefit you earn from keeping updated with your consumer preferences, is that your current customers are also likely to prefer staying with you, ideally moving deeper into your sales funnel by subscribing to more of your products. In this way, you also improve your user retention levels quite significantly.

3. Leveraging all the tools available to canvas customers effectively

To increase user acquisition, it is important for your business to be visible and to make an active effort at drawing in potential customers existing everywhere. Making use of multiple channels to reach out to and communicate with your audience allows you to maximize market coverage and thus also customer acquisition. The impact of using multiple channels for communication can significantly improve your brand recognition and reputation in the marketplace too and these further help your customers decide in your favor more easily and quickly.

4. Know who your customer is

If knowing your marketplace is an important first step for better customer acquisition, being familiar with your customer profile is another critical one. Being aware of your typical customer’s profile also helps you target other members of the audience who are most likely to convert into your customers, improving your SaaS customer experience and enhancing your conversion rate. Build a profile or persona of your ideal customer, understand what he/she likes or dislikes to leverage any opportunities for drawing them deeper into your conversion funnel.

5. Leverage the power of referrals

The SaaS business model is based on great service, its ability to keep customers loyal and also prompt them to act as your ambassadors in the marketplace. This places a powerful tool in your hands, the tool of referrals. By ensuring that your customer service levels always match or exceed the expectations of your customers, you give them great reasons to recommend you to their friends and acquaintances. This referral power of your client base needs to be leveraged to the maximum for your business to grow at a fast pace and for your customer acquisition rate to improve significantly year over year.

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Raj Badarinath

VP, WW Product Marketing and Alliances

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