If there is one industry where growth marketing truly shines, that is the SaaS industry.
From enterprise software to SaaS software, SaaS has come a long way and it’s currently the default kind of software for users. Today, Software as a Service is a $250 bn industry with an expected annual growth rate of 8%.
While these numbers are a good omen for the SaaS industry, you will also find one more metric on the other side of the coin: 9 out of 10 SaaS companies fail. And 6 out of 10 never make a profit.
So why is that?
Often SaaS companies build a failed product because they can’t identify many of the problems users have – and so they can’t solve them. Unsuccessful product positioning, bad pricing strategy, and a lack of vision are usually why many of these SaaS companies don’t find a place in the market.
Also, many of them launch their product without even having achieved product-market fit first or they encounter problems building a Minimum Viable Product (MVP) that matters.
Everything begins with the search for a problem/solution fit.
Next, you need to create your Minimum Viable Product. Minimum is about incorporating only the most rudimentary functions of your program, Viable means that it’s sufficient enough and Product stands for a tangible end-to-end solution that you are going to give to your customers.
After creating your MVP comes the product/market fit, which is the degree to which the product you offer satisfies the market’s demand.
Then, after you optimize your product, you need to examine your channel/product fit. This stage becomes crucial especially if your product is based on a freemium business model.
After creating your MVP comes the product/market fit, which is the degree to which the product you offer satisfies the market’s demand.
Finally, you need to build your growth funnel.
The growth funnel has five stages and the purpose of every SaaS company is to try to give the best answer that every one of these stages implies:
