1. Maintaining a healthy balance is a must
During the early stages of your SaaS startup, you will often have to wear different hats. For example, you may be in charge of reviewing content for your blog, managing leads, updating lead scoring, interviewing candidates for a job and so on.
As you build your business with a lean team, you have to determine what is important that needs to be done right away and what can wait. Your daily tasks should address the following important goals: build awareness, manage leads, create sales support and build the product.
Even as you focus on getting customers, do not forget to improve your product. Take care of your existing customers even as you prospect for new ones. Always strive to improve your product to align it with the needs of your customers.
2. Set price based on customer behavior and what they value
Growing a SaaS business is slow in the initial stages. However, in the middle age, the business becomes a predictable recurring revenue machine. Don’t be afraid to experiment with yearly plans upfront to drive in cash and reduce early churn. Moreover, strike a balance between users and revenues. If you will be offering support, avoid the freemium model.
Pricing is important as it will affect your short and long-term revenues. Do not price your product based on perceived costs but on customer behavior and what they value. Interact with your paying customers and find out why they are paying for your SaaS product. Are the reasons they signed up the same ones you think? Sometimes, customers may find your service valuable in ways you did not think of.
3. Treat customers like prospects
If you are only interacting minimally with your existing customers e.g. during their renewal period or when you need a reference, you are running your business wrong. You cannot afford to spend lots of money acquiring customers only for them to leave at the back door.