It really is possible to double your SaaS business" monthly recurring revenue.
Recurring revenue is a core pillar of any SaaS business. By optimizing your website and marketing for your best customers, you can set up your product and content marketing so you can potentially double your monthly recurring revenue (MRR) growth rate. This is one of the fastest ways of growing your SaaS business.
If you want to take things even further and improve your revenue growth rate, however, you need to go one step further with recurring revenue. You need to double down on it by using SaturnOne’s content marketing analytics to identify super users and implementing strategies that target them specifically.
Here are seven steps you can take today in order to double your recurring revenue and accelerate the growth of your SaaS company.
You see, SaaS companies have three types of customers which you should be aware of as a Content Marketer or entrepreneur:
1. CAC (Customer Acquisition Cost) > LTV Customer For example, CAC is $100 while LTV is $50. So the company loses $50 here, a bad customer.
2. CAC = LTV For example, CAC is $100 while LTV is also $100. So the company is on break even here, not counting the very real support costs.
3. CAC < LTV) For example, CAC is $100 while LTV is $200. So the company profits $100 here, a good customer.
1.One way to do this is by looking at the customer lifetime value (LTV) inside the Content Attribution section of SaturnOne’s first page. For example, your average cost of acquisition per customer is $500. And your goal is three times that value which is a $1,500 LTV client. That would be your main criteria: look for a $1,500 LTV client.
In order for the SaaS company to survive and thrive, the CAC must be lower than the LTV. A CAC that is less than one-third the LTV is necessary for most SaaS businesses to bootstrap and/or be profitable.
2.Next step is to find out which content is frequently visited by these customers ($1,500 LTV). When you use analytics tools like SaturnOne’s Content Marketing Journey Analytics, you would be able to see right away which content, blogs, channels, platform, countries and even browsers are performing the most in terms of customer engagement and conversion.
3.The least active group might be visiting a different set of content or that their visits are less frequent. So we need to nurture these types of customers ($500 LTV) and educate them to convert them into CAC < LTV customers.
4.We can focus on the content that is most visited by using the content attribution (inside SaturnOne) and by tracking the customer journeys and segmenting them according to the three (3) types of customers. Focus on:
By helping our clients optimize for their best customers, the benefits are:
You tailor-make your web funnel experience for your customers based on these insights.
SaturnOne functions to help clients measure all three types of customers by studying and measuring contributory factors on their website such as blog articles, context ads, social networks, video services, email marketing, SEO services, and so on.
The rest of the steps which you can do to help double your MRR:
5. Onboarding Experience. The next step is optimizing the onboarding experience. Anytime someone buys your SaaS product or more so subscribes to it, you need to optimize the onboarding. Whether it's a free trial or you're going right directly into the paid version, you need to optimize the onboarding. If they get onboard and they start using it right away, you're off to the races and you're doing an amazing job.
However, when someone buys your product and they're subscribing right away but they don't use it for the first week, what's going to happen? They're probably going to cancel after a few months and your lifetime value of your customers (LTV) is going to start decreasing.
You need to make sure they're onboarded right away and they're using it. Ask them about their experience. You could follow up by email, you could track your onboarding experience, you could add chat, you can look at what people are doing and do more of the things that make people happy and do less of the things that are confusing people on the onboarding experiences.
In other words, what you need to do is look to see what people are doing, who are getting all the way through and look at all the people who aren't getting all the way through and see where they're getting stuck.
6. Based on that, optimize by FIXING it. The second thing you need to look at is how often are people logging in. If they're not logging in often, they're not using your SaaS subscription product, that means they're probably going to churn. Usage causes a higher LTV, non-usage causes a lower LTV.
7. Send email reminders, send reports, send text messages, get them engaged. A good way to get them engaged other than sending reminders is by continually fixing your product. The way you fix it, which gets into the third way, is by surveying people. Survey your users. Find out what they love, what they hate, and what you can improve upon. For more detailed information on the subject, DOWNLOAD the FREE eBook now.
By taking all the money (budget) you’re spending on the less profitable customers and using them on the more profitable ones, whether focusing the money on content production, promotions, focusing on the right channels, you would increase the probability of doubling your MRR.
See how SaturnOne optimizes your marketing by getting a DEMO NOW.