According to research, the software as a service (SaaS) market is worth $170 billion. Specialists also predict that the demand will grow due to the increased adoption of cloud applications. If you are a SaaS business owner or manager, you should leverage the high demand and use it to grow your business.
Prioritize customer needs and ensure your product meets their demands. Further, use effective ways to avoid churn and source capital to scale.
Here, we provide the ultimate guide to increasing monthly recurring revenue (MRR). We’ll also discuss how a solution like Crowdz can help you leverage MRR.
1. Boost Confidence in Your Product
One ideal way to increase your monthly recurring revenue is by cultivating customers’ confidence. When your target market trusts what you offer, they will likely be loyal to your brand.
Boost your customers’ confidence by addressing concerns regarding your product. Check reviews about your software on downloading platforms to determine the aspects clients would like you to change. You can also get this information on forums that review solutions or on your Google Business page.
Other ways to boost your customers’ confidence and grow your business with MRR are:
- Respond to client reviews
- Share customers’ testimonials on your website and social media
- Offer reliable customer service
- Improve the user experience
When boosting confidence in your product, you should also focus on your target market. Offer free demos to increase awareness about your product and its benefits.
This method will educate your customers and help them discover how they can solve various issues with your solution. Further, it presents an opportunity to test the software and clarify misinformation about its features.
Offering free demos or consultations will help you convert more leads into customers. Besides, you can increase MRR without incurring losses associated with free trials.
2. Automate Customer Retention
Client retention plays a significant role in increasing your monthly recurring revenue. Still, this process can be time-consuming, especially if you have many clients. Automate some retention processes to lower churn and increase your MRR.
For example, send post-sale emails to appreciate your customers and guide them on using the software. Such will make them feel valued, which can encourage loyalty.
If you run a SaaS business that sells to other enterprises, you likely deal with clients with a heavy workload. Automating some processes will help your customers streamline workflow. Besides, it encourages engagement with your tool, increasing your monthly turnover.
3. Encourage Referrals
Another way to increase your monthly recurring revenue is by boosting the number of referrals. You may obtain these from product reviews or references by your current clients.
Develop a referral program to encourage your clients to refer you to others. Since your customers understand your product and its benefits, they can easily encourage others to subscribe to your packages.
One strategy you can use to encourage referrals is by offering discounts. Besides, reward customers a percentage of your revenue when a new client subscribes. Another way to reward clients that refer others is by giving them a one-month free subscription for every referral.
Implementing a referral program will encourage customers to help you generate leads. In the long run, you will increase MRR at a lower marketing cost. A referral program also allows you to build long-lasting relationships with your customers and avoid MRR fluctuation.
4. Upsell Your Product
Upselling your product is an effective way to boost MRR in your SaaS business. This process involves promoting additional features included in a premium package. It also includes influencing clients to upgrade to the next plan for added benefits.
Develop upselling strategies by studying your clients and assessing how they could benefit from additional features. For example, you can determine how their needs changed after scaling. After that, use various strategies like email marketing and newsletters to encourage them to opt for a better package.
Content marketing is another way to upsell your product and increase monthly recurring revenue. Determine the issues your clients face when using a basic software package and use blogs to highlight the benefits of premium plans. Besides, include a call to action in the content to generate more leads and encourage customers to upgrade.
Upselling additional features to clients has many benefits. First, it allows you to generate more MRR from existing clients. Besides, you target customers willing to pay a higher amount for extra features.
5. Generate More Leads
Using the proper channels to get more business leads will help you increase MRR over an extended period. Determine the platforms your target customers mainly use and use them to increase product awareness. Besides, use paid ads and social media marketing to boost traffic to your sites.
Once you generate leads, use demographics to determine the people you should target. For example, use companies’ revenues and market outlook to assess if they will likely need your services in the long run.
If your product targets individual users, use aspects like age and income to focus on loyal customers. Such strategies will help you avoid wasting time and effort on leads that will churn after a short period. It also allows you to tailor your product and boost monthly recurring revenue.
Grow Your SaaS Business with Crowdz
Increasing your recurring revenue will help you grow your SaaS brand. Still, waiting for customers to renew plans can make it tough to get lump sum funds and sponsor some projects.
At Crowdz, we provide a platform where you can trade your unpaid invoices for cash. With our solution, you can grow on your terms and leverage recurring revenue. Contact us now for a demo.