Top SaaS Customer Retention Strategies to Reduce Churn and Optimize Growth In the speed-of-light Software as a Service (SaaS) era, winning customers is only half the fight, retaining them is where compounding growth occurs. Slowing churn can quietly eat away at your revenues, but healthy retention drives compounding growth and boosts profitability. Reduce churn in SaaS requires moving beyond the sale point and into consistent delivery of value across the customer life cycle. This manual discusses the best SaaS user engagement techniques, how to empower them with tools, and how to measure the impact so you can grow and retain customers responsibly. The Education on Churn in SaaS Churn is the rate of customers who cancel a subscription over a period. Excessive churn not only depreciates MRR month-to-month, but it also fuels customer acquisition expenses because more work has to be put into replacing the lost customer. There are two types of churn: Voluntary churn: When the customer self-exits, typically due to onboarding problems, value not received, or poor support. Involuntary churn: Involuntary churn is usually brought about by payment failures or declined cards. It is necessary to know the reason why users are churning to execute the long-term customer success strategies for SaaS to minimize SaaS subscription cancellations. Most of the churn is brought about by a mismatch between user goals, expectations, and product value. Best SaaS Customer Retention Strategies 1. Customer-Centric Onboarding Effective onboarding strategies for SaaS lays the foundation for long-term use. Those users not given short-term value will churn more likely in the first 30 days. Top onboarding best practices: Offer instant gratification in walkthroughs or checklists Use in-app tips to guide attention to critical features Offer follow-up emails with helpful tips and video tutorials Assign a customer success manager for high-value accounts A superior onboarding experience cuts uncertainty and creates early product satisfaction. 2. Personalized Customer Experiences SaaS customers require personalization. Personalize communication, dashboards, and support to reflect user behavior and business type. How to create a personalized SaaS customer experience: Use segmentation to send behavior-triggered emails Show relevant features based on role or behavioral patterns Offer personalized product recommendations or upgrades Personalization creates an emotional connection and makes your product indispensable. 3. Engaged Customer Support Reactive support is not enough. Proactive customer support SaaS prevents issues from becoming frustrating. Examples Notify customers to upcoming issues (e.g., payment failures, usage restrictions) Provide training classes on new feature release Engage with top questions via chatbots in real-time Support must be a relationship, not a lifeline. 4. Retention-Driven Marketing Your marketing does not have to end at the sale. A retention-focused SaaS marketing strategy retains users after the purchase. Core tactics: Periodic product update newsletters Case studies of new applications Invite-only webinars and events Marketing to existing customers reminds them of your worth and prevents stagnation. Book Your Free Marketing Consultation 5. In-App Engagement Strategies Customers require reminders to continue using your app, particularly if your product doesn’t integrate into their daily workflow. SaaS user engagement strategies are: Gamification features (badges, progress bars) Push reminders or notifications Personalized dashboards and usage analytics Encouraging more active usage is ultimately retained. 6. Smart Upselling and Cross-Selling Used appropriately, upselling and cross-selling in SaaS not only generate additional revenue but also increase value. SaaS renewal strategies include: Milestone-based offering (e.g., storage limits reached) Bundling complementary features Upselling power users based on account health scores Make sure to ensure these offers enrich, not disrupt, the user experience. 7. Customer Loyalty Programs Encouraging continuous use and recommendations through SaaS customer loyalty programs is another good practice for preventing churn. Examples Credit for inviting friends or colleagues Annual renewal discounts Reward points for performing something (e.g., reviews or surveys) Loyalty programs reward good behavior and get users back. 8. Tight Feedback Loops It is worth getting users to do continuous conversation. Creating feedback loops in SaaS allows you to catch problems early and focus on features users need. Best practices: Run in-app surveys upon onboarding or feature usage Monitor NPS (Net Promoter Score) Host business customer advisory board meetings Listening and reaction build adoption and trust. Tools and Technology to Enable Retention Retention is not a fluke. Leverage tools to automate and simplify your approach. 1. Customer Success Platforms Gainsight, Totango, or ClientSuccess are software platforms that allow for customer health tracking, milestone monitoring, and follow-up settings. 2. Product Usage Analytics Mixpanel, Pendo, or Amplitude browsers provide you with in-depth views of user engagement with your product. Product usage analytics for retention enable you to specify sticky features, drop-off locations, and upsell possibilities. 3. Email Automation and CRM Use tools like HubSpot, Intercom, or Customer.io to automate onboarding, engagement emails, and renewal reminders. 4. In-App Messaging Tools like Userpilot, Appcues, and Chameleon allow you to present tooltips, modals, and checklists in your app for frictionless experiences. These features allow data-driven, scalable retention by user segment. Measuring the Success of Your Retention Campaigns You can’t fix what you can’t measure. Track SaaS retention metrics regularly so you’ll know what works. Most critical to track: Churn rate: Monthly or annual customer loss rate Net retention rate: Adjusts for upsells, expansions, and downgrades Customer Lifetime Value (CLTV): The Worth of a customer throughout their lifetime Customer Health Score: Aggregates usage, engagement, and
Open Source vs Proprietary SaaS: What are the differences, advantages & disadvantages? Software-as-a-Service (SaaS) has become the cornerstone of much modern-day business activity. From CRM software, project management software, to marketing suites, SaaS solutions are being used in nearly every sector. However, companies need to make a crucial decision: open source or proprietary SaaS? Information regarding the open source to closed source model is key when selecting the perfect investment. Both contain certain pros and cons that can affect customization, flexibility, support, cost, and long-term growth. This article provides an extensive SaaS software comparison to help you make the right choice. What Is Open Source SaaS? Open source SaaS is cloud software written using publicly available source code. Businesses can learn, modify, and host the application on their server. The procedure is popular among developers and technically savvy teams who need to have greater control. Transparency is the largest open source software benefit. Since the code is available, organizations can audit the code for security vulnerabilities, modify features as per their need, and contribute to future software development. The majority of SaaS open source platforms are open source and are licensed under MIT, GPL, or Apache. They are put under different SaaS licensing models that offer free or altered use depending on meeting their terms. What is Proprietary SaaS? Proprietary SaaS is software owned, hosted, and created by a vendor who retains full control of the code. The product is accessed by subscribers and is delivered in its entirety over the web. Neither do they have ownership of the source code nor low-level modifications. Proprietary SaaS applications can include pre-packaged functionality, an easy-to-use interface, and technical support connectivity. Maintenance, data security in proprietary SaaS, infrastructure, and software updates are vendor-responsible, offering a hassle-free one-stop solution. This is the optimal path for companies that want simplicity and stability, especially when in-house development skills are not immediately available. Key Differences Between Open Source and Proprietary SaaS There are some proprietary software limitations. The most significant difference is customization and control. Open source provides the complete freedom of the codebase, whereas proprietary software locks the users into a single product. In the matter of customization, the customization in SaaS is significantly stronger in open source systems since developers can customize the platform to precise specifications. Open source platforms are more technically demanding to install, administer, and grow. Private platforms don’t have to be used straight from the box, however, and are appealing to businesses that value simplicity over highly customized solutions. Also, pricing models are diverse. Proprietary SaaS features is sold on a subscription basis that may include support, hosting, and maintenance. Open source SaaS may be less expensive to start with, but may require ongoing support and external maintenance. Advantages and Disadvantages of Open Source SaaS Advantages One of the best open source SaaS advantages is that it gives control to you. You can deploy the platform on your hardware, personalize code to fit your business processes, and create custom features not found in mass-market offerings. The cost of SaaS platforms is generally lower with open source since you lack ongoing vendor licensing costs. This is fantastic for startups or businesses walking a tightrope. Open source also gives you the maximum open source flexibility; you’re not locked into a vendor’s roadmap or ecosystem. You decide what to upgrade, when to upgrade, and how to take the platform forward. Disadvantages Despite open source software benefits, it requires in-house technical expertise. Installation, upgrades, and debugging are difficult to accomplish without a capable development team. Support typically occurs via web forums unless you shell out money for expert support. User interfaces can’t match proprietary ones, and documentation is a chance. Pros and Cons of Proprietary SaaS Advantages With proprietary SaaS, the app software company does everything, from hosting and updates to security and backups. The whole deal is attractive to firms that desire reliability without servers to maintain or developers to retain. Easy-to-use design, easy onboarding, and instant customer support access are standard on most platforms. Properly secured proprietary SaaS is a benefit as well because the vendors spend a lot of time protecting data, compliance, and threat blocking. These choices are perfect for those who need to go fast and do not have the technical burden of open source platforms. Disadvantages A major downside is lack of control. You can’t alter the way the software is behaving outside of what’s in the settings. Such restrictions on proprietary software constrain innovation, especially for organizations that need specific process specifications. Another problem is SaaS vendor lock-in. Your business is locked into a single vendor, who can raise price, change terms, or shut off features. Changing to another solution later on is expensive and labor-intensive. Book Your Free Marketing Consultation Deciding Between Open Source and Proprietary SaaS You still get to pick the model that’s appropriate for your company. If your company wants control, customization, and innovation, then open source would be the appropriate selection. It supports extensive configuration, can handle special workflows, and avoids licensing danger. You also get to make the platform decisions according to your internal standards. If convenience, speed, and total vendor support are paramount, proprietary SaaS is probably the answer. It’s ideal for teams that need to “plug and play” without care about code-level changes or infrastructure. For companies with shallow technical depth, convenience and scalability of proprietary products are hard to beat. Scalability of open source SaaS will be heavily dependent on the quality of how it’s hosted and built. Installed properly, it can scale to SaaS for enterprises loads. But it does not happen automatically. Proprietary solutions, however, scale with you day one. Conclusion There is no one-size-fits-all approach for anyone in the open source vs closed source SaaS conversation. Instead, it’s just a matter of your business model, budget, internal capability, and road map forward. If you need something you can install, build on, and deploy wherever you wish, then open source offers uninhibited freedom. If your utopia
Global vs Local SaaS: Key Differences, Challenges, and Strategies SaaS has revolutionized the manner in which organizations develop, deploy, and utilize software. As SaaS growth accelerates worldwide, the majority of start-ups now face a strategic decision: attend to a local SaaS market or develop a global SaaS strategy. While local deployment enables faster traction and familiar markets, the global strategy offers access to scale, repeat revenue, and sustained growth. But globalizing from local is nuanced. SaaS expansion internationally requires a lot more than placing a product in a foreign geography. It requires systematic local adaptation, extensive cross-border saas know-how, and deliberate compliance, support, and localization thinking. This handbook reveals the key differences between local vs international SaaS, explains the most significant global saas challenges, and presents recommendations for you on how to grow your product internationally successfully. Local vs Global SaaS: Definitions To begin with, let us define what we mean by local and global SaaS accurately before we proceed with the differences. Local SaaS A country- or region-specific SaaS product is designed and built for a single or multiple countries or regions. It’s customized to local usage habits, law, language, and payment system. Examples are accounting packages that are set up to cater to local tax requirements or HR packages that are attuned to local employees’ practices. Global SaaS A global SaaS platform has clients in more than one region and country. It must contend with different user needs, currencies, languages, and regulatory environments. Examples of popularly utilized global vs regional SaaS platforms include Salesforce, Zoom, or HubSpot. Key Differences Between Local and Global SaaS It is not a question of scaling saas globally alone to move from local to global Saas; there are foundational differences in infrastructure, go-to-market, and product architecture. 1. Market Concentration Local SaaS addresses local or niche pain areas. The global SaaS addresses universal business pain areas, such as providing a more complete solution. 2. Localization Requirements Local SaaS involves little or no adaptation. Global SaaS involves minimal expenditure in language localization for saas, e.g., UI/UX, support, and documentation. 3. Compliance with Regulations Local SaaS must comply with the laws of a single country. International SaaS must contend with advanced regulatory challenges in global SaaS, including GDPR (EU), CCPA (US), and data residency laws in China or Brazil. 4. Pricing Strategy Local pricing relies on currency alone. Global pricing is a pricing strategy for global saas, i.e., currency conversion, tiered levels of price, and perceived value across multiple economies. 5. Customer Support Local SaaS support personnel typically operate from a single time zone and language. Global SaaS necessitates customer support in global saas 24/7, regional, and multilingual hubs of support. 6. Sales & Marketing Local SaaS acquires customers locally by language and channels. Global SaaS invests globally in demand generation, partnerships, and local salesforces. Book Your Free Marketing Consultation Challenges of Scaling a Local SaaS Globally Saas international expansion is a risky undertaking. The benefits of going global with saas are enticing: diversified revenue, greater brand value, and market dominance, but there are a number of barriers that can topple or ruin growth unless addressed in the right way. 1. Localization and Cultural Alignment Each geography possesses cultural subtleties, business etiquette, and buyer assumptions. Lack of adequate investment in a well-thought-out SaaS localization strategy, beyond language translation, is guaranteed to enrage users and wreck adoption. 2. Legal and Regulatory Complexity Countries differ greatly in how they approach data, digital services, and taxation. The complexity of SaaS regulation worldwide, like GDPR or on-premises hosting of data, is complemented by other legal nuances. 3. Operations Infrastructure International SaaS businesses need to contend with dispersed infrastructure, servers, cloud infrastructure, and performance worldwide. Latency, uptime, and redundancy become issues that are of paramount importance. 4. Payment Gateway and Currency Processing Going global will most likely mean including local area payment mechanisms and dealing with many currencies. Global transactions will even be restricted in certain markets. 5. Brand Perception and Marketing Something that will be effective in a particular territory will not work at all in another. Brand voice, case studies, and even product positioning will need to be tailored by market. 6. Time Zones and Support Hours Customer support for international SaaS must be supported in multiple time zones. It is usually necessary to employ and train a multi-lingual support staff or farm out regionally. Local SaaS Company Global Strategies To accomplish scalable SaaS global expansion, local SaaS businesses must adopt a phased, planned strategy. Here are important strategies for assisting your shift from local to global: 1. Begin with a Pilot Region Instead of executing a global expansion in multiple directions simultaneously, start with one or two markets in foreign countries. Identify places with decent SaaS penetration, linguistic affinity, or similar regulatory regimes. 2. Localize with Investment Develop a holistic language localization strategy for SaaS that extends beyond the user interface: Translate onboarding procedures, documentation, and email messages Localize product graphics to the local context Localize terms of law, units of measurement, and currencies 3. Change Your Pricing Model Your SaaS pricing model should take into account buying power and expectations in each market. Include localized price bands if they are present, country discounts, and other payment models. 4. Create International Partnerships Work with resellers, agencies, or integration partners in the region who comprehend the behavior of customers in that region. They can help in local market adaptation in saas and quicker market penetration. 5. Construct Global Infrastructure Readiness Host your application in local data centers near your global users. Simplify the performance, security, and data compliance with local data laws. Utilize CDN (Content Delivery Networks) and cross-border cloud services like AWS or Azure. 6. Locally or Regionally Hired Employ local sales and marketing staff who understand the local cultures and customer aspirations. Train customer support staff for multilingual support and time zones. 7. Regulatory Readiness Work with regulatory specialists to be current on international
Vertical vs Horizontal SaaS: Major Differentiators, Advantages, and Illustrations SaaS keeps growing leaps and bounds, but platforms aren’t all equal. Increased competition for SaaS startups and B2B marketers in the last couple of years has been in the guise of vertical vs horizontal SaaS definition, two radically different product strategy, market targeting, and growth paradigms. Understanding these paradigms is something everyone involved in SaaS go-to-market strategy should be aware of, especially to understand B2B SaaS product positioning, scalability, and niche targeting. This is a vertical SaaS guide, how it contrasts with horizontal SaaS, and why one fits better based on your model, purpose, and users. What Is Vertical SaaS? Vertical SaaS definition is that it is software developed to tackle one vertical industry or a single market. These applications have been coded on the basis of industry workflows, compliance considerations, and features. A single vertical SaaS app will not do it all for every firm; it is built to tackle one sort of problem that is industry-specific SaaS. This vertical SaaS will typically address a business such as healthcare, law, construction, real estate, or education. A sample of vertical SaaS for healthcare might offer HIPAA-compliant patient portals, scheduling, and electronic health records packaged together. With focused intensity, vertical SaaS examples businesses can concentrate on one industry and build high levels of customer trust. What Horizontal SaaS? Horizontal SaaS, however, faces a huge number of industries as it addresses general business requirements. Applications are not industry-specific but generic applications and are used by the majority of business types. For horizontal SaaS examples, marketing tools such as Mailchimp or file transfer apps such as Dropbox are the archetypal horizontal SaaS offerings. Salesforce, Slack, and Dropbox are products that any company can utilize, whether a chain store retailer, a hospital, or an IT firm. Horizontal SaaS platforms are usually architected to scale in terms of a massive user base and feature sets that are malleable enough to enable different industries to customize their experience. Differences Between Horizontal and Vertical SaaS The most significant difference is intent and focus in the marketplace. Vertical SaaS focuses on industries directly. Vertical SaaS digs very deep into process, regulation, and customer culture of an industry. Horizontal SaaS goes wide, it focuses on problems that are generic in nature, like working with customers, file sharing, or being a team. Vertical SaaS is going to be the one that’s easier to onboard in. It’s vertical because it’s performing the same action, doing the same thing, and speaking to the same integrations, all of which are present in that vertical alone. Horizontal SaaS requires more custom effort from the end user because it has to operate across multiple verticals. The second major divergence is the customer-retention axis. Vertical SaaS platforms will tend to be more customer-retentive due to the highly specialized nature and high switching costs. Horizontal platforms will tend to be competitive but can enjoy the advantage of having a larger addressable market. From a viewpoint considering the segmentation axis of SaaS marketplaces, vertical SaaS offers depth, while horizontal SaaS offers breadth. Strengths of Horizontal SaaS Challenges of horizontal SaaS are many but the biggest advantage of Horizontal SaaS is vertical expansion to industries. Since the product is resolving universal problems, i.e., communication, CRM, or accounting, it can be sold to any business of any sector that will require it. Brand awareness is strength too. A lot of horizontal SaaS for small businesses like QuickBooks or Mailchimp are already consumer brands since they’re going so broad a demographic. Horizontal SaaS offerings also leverage volume. They are massive scale, and cost per customer acquisition decreases over time. The onboarding is typically self-service, so they can grow very fast without the need to maintain a light-weighted sales organization. Second, horizontal SaaS platforms are extremely flexible. They are building blocks upon which companies can construct themselves as per their individual needs using APIs, plug-ins, or integration. The downside is competition. Since among vertical SaaS vs horizontal SaaS market size, the size of the market of horizontal SaaS is bigger, it is broader in extent. The competition here will need to innovate to stay ahead of the curve and not become commoditized. Book Your Free Marketing Consultation Advantages of Vertical SaaS Vertical SaaS solutions, being more specialized in application, are of extremely high value on account of specialization. As they are built around deep insights into the needs of a single specific industry alone, they solve hard problems that commodity software cannot. An example construction firm software product would be a contractor management feature, regulation compliance for safety, milestone tracking, and project bidding, all of which are highly specific to how construction firms operate. It is something that is helpful to vertical SaaS firms. Buyers see them as a more substantial partner than softwares suppliers are viewed. It means longer terms, improved retention, and top-tier pricing. Speed to value is also benefits of vertical SaaS. The product is designed with the customer’s business processes in mind specifically so there is faster implementation and simpler adoption. Vertical SaaS growth trends are also growing very sharply. As more companies need more tailored experiences, niche SaaS solutions are becoming increasingly popular in highly niche and heavily regulated industries. The only drawback is that the total addressable market is smaller than horizontal SaaS. But market depth and loyalty could be much greater. Which One Should You Choose Horizontal or vertical SaaS will be based on some things like your vision, resources, target market, and experience. Choose horizontal SaaS if your solution product targets an issue that touches more than one industry, for example, file storage, task management, CRM, or collaboration. It is your beverage of choice if you are looking for high growth, high visibility, and a self-service mode. Use vertical SaaS if you are an industry specialist and can offer solutions specific to the industry that general software cannot. If you have a niche with multi-step processes or regulatory requirements and want to be a
How SaaS Companies Make Money: The Business Model Defined SaaS has transformed software development, delivery, and profitability. SaaS stands for Software as a Service. SaaS enables companies to deliver cloud-based applications to customers over the internet, in most cases, on a subscription basis. But instead of merely selling software, SaaS businesses operate on other models of revenue centered around recurring revenue in SaaS, customer retention, and long-term expansion. Whether you are an investor, a marketer, or an entrepreneur in the tech industry, knowing how revenue is generated in SaaS is vital. In this article, we explore the main sources of how SaaS generates revenue, the most in-demand monetization models, SaaS key financial performance indicators, and trends that are changing this fast-rising industry. What Is a SaaS Business Model? A SaaS model provides computer programs via the cloud rather than the traditional installed software versions. The user typically employs a program or web interface to use the product and pays regularly, monthly, quarterly, or annually. The model benefits the customer and the vendor in the following manner: Lower initial cost for customers Vendor’s scalable architecture Simplified management and updating Upselling opportunities within SaaS To businesses, subscription model SaaS provides steady revenues and better customer relationships. Instead of transaction volumes, retention and lifetime value become the key. Sourcing Large Revenues for SaaS Companies While the subscription model is the main source for most SaaS companies to generate revenue from, there is a second one. Well-established SaaS companies diversify revenues with more than one monetization stream: 1. Subscription Plans This is the source of core recurring revenue. Companies offer tiered seats, features, or prices by usage. An example is as follows: Basic (freemium or low-price) Professional Enterprise This model locks in recurring revenue for SaaS, levels cash flow, and aids in long-term planning. 2. Freemium to Premium Conversions The freemium SaaS model offers free, limited functionality to users and later tries to convert them into paid plans in the future. This is most suitable for quickly expanding user bases. 3. Upselling and Cross-Selling Upselling additional features, add-ons, or ancillary products increases SaaS customer lifetime value. For example, a CRM software upsells additional automation features or adds marketing modules. 4. Professional Services Some SaaS software has consulting, implementation, or training services, oftentimes in B2B settings. They are revenue and client success drivers. 5. API or Usage-Based Billing A select few charge on a per-number-of-API-calls, data-consumed, or per-transaction basis. This applies to developer-focused SaaS or infrastructure products such as Twilio, AWS, etc. Monetization Strategies in SaaS Effective SaaS pricing strategies depend on several of the right pricing methods being chosen. Some of the most established approaches in use at present by SaaS firms are outlined below: 1. Per-User Pricing Paid by the number of customers. It’s reasonably well-suited to scale with firm size, but will level off team adoption. 2. Tiered Pricing Plans grow with sets of features. Tiered pricing is best for upselling and moving customers into higher-priced plans. 3. Usage-Based Pricing Such as “pay-as-you-go,” the model is cost-value aligned. It’s employed by infrastructure software and SaaS that operate with variable workloads. 4. Flat-Rate Pricing Single price for all. Such a method is extremely simple and easy, but does not include revenue from over-consumption. 5. Freemium Strategy Offering an ad-supported version with limited functionality to capture users. The strategy is to promote some of these users to a paid one through monetization of value. Book Your Free Marketing Consultation Savvy SaaS Metrics Driving Revenue In attempting to understand how SaaS startups make money, it’s important to monitor SaaS financial metrics that are performance indicators, retention and profitability: 1. Monthly Recurring Revenue (MRR) / Annual Recurring Revenue (ARR) These are the pillars of SaaS profitability, giving visibility to revenues in the future in the long term. 2. Customer Lifetime Value (CLTV) It determines how much revenue is driven by a customer over their lifetime. Upselling to drive CLTV growth and product stickiness is on the priority list. 3. Customer Acquisition Cost (CAC) It puts a number on getting a new customer. To be viable, CLTV must be 3x CAC. 4. Churn Rate Churn rate in SaaS is the percentage rate at which customers unsubscribe within a given time. Lesser churn implies more consistent revenues and improved growth rates. 5. Net Revenue Retention (NRR) It accounts for upgrades, downgrades, as well as churn to figure out how much revenue is being retained from current customers. 100% or more NRR reflects good growth. 6. Conversion Rate In freemium or trial-based models, it is important to gauge which of the users are transitioning into paid customers. 7. Efficiency of SaaS Sales Funnel Monitoring how the leads move through the SaaS sales funnel, from awareness to activation and on to purchase, aligns marketing and sales activities in an effort to maximize performance. Challenges in SaaS Monetization SaaS has many benefits, but the SaaS business model is not without some problems that are holding back growth and SaaS profitability: 1. High Churn Rates It costs less to keep a customer than it does to acquire a new one. SaaS high churn rate can be expensive and hurt scalability. 2. Price Sensitivity Subscribers would prefer to compare products side-by-side. If your SaaS pricing model doesn’t bring value, users will abandon it quickly. 3. Tardy ROI Since SaaS income builds up gradually, SaaS companies must spend initially on product creation and customer acquisition before they generate profits. 4. Customer Support Burden Serving a large number of repeat clients involves maintaining lean support staff and onboarding infrastructures to avoid churn. 5. Scaling Infrastructure As user bases grow, platforms must add server capacity, uptime stability, and security, features with high costs. Trends in Future SaaS Revenue Models The SaaS trend is evolving through customer requirements and technology advancements. New trends include: 1. AI-Powered Personalization SaaS
SaaS Churn: Mitigating Customer Turnover and Maximizing Retention Churn is perhaps the most important business metric for SaaS businesses. Customer loss to competitors or de-adoption can wipe out sustainable revenue growth in the long term. Incremental retention rate improvements can lead to phenomenal growth in recurring revenue, company value, and customer lifetime value. Having understood what is SaaS churn, monitor the right churn metrics, and take measures to minimize churn and maximize retention, you’ll build your subscription business on stronger grounds. In this, we’ll take a look at what exactly churn is, how to measure it, and effective steps to minimize it, and improve customer loyalty in SaaS and maximize retention at each step. What is SaaS Churn? Churn in SaaS is the percentage of clients who do SaaS subscription cancellations within some time frame, most commonly a month or year. It is also known as the customer churn rate and is either lost revenue or lost customers. It is so easy to calculate the monthly churn rate: sql CopyEdit churn rate formula (%) = (Customers Lost During Period ÷ Total Customers at Start of Period) × 100 For instance, if you began the month with 500 customers and 25 departed, your monthly churn would be 5%. Churn can also be measured as a percentage of revenue, or, as it is sometimes referred to, revenue churn or net revenue retention (NRR). NRR is recurring revenue retained that accounts for expansions or upsells, giving a fuller picture of retention performance. How to Measure Churn Effectively? Churn is not a metric. Segmentation and measurement of various types of customers at their lifecycle are required for proper user churn analysis. Some of the most important metrics include: Customer Churn Rate: Tracks the percentage of customers within a specific period. Revenue Churn Rate: Compiles recurring revenue lost as a percentage of first total revenue. Voluntary vs Involuntary Churn: Segments’ reason for churn. Monthly vs Annual Churn: Monitors trends over time to spot seasonal or subscription-duration effects. Net Revenue Retention (NRR): Accounts for upsells, cross-sells, and expansions minus lost revenue. By examining these metrics and analyzing which customer segments churn most, you’ll gain invaluable insights into customer lifecycle management and identify the most effective SaaS retention strategies. Strategies to Minimize Churn and Enhance Retention It’s not a matter of lowering churn, it’s a matter of showing value in each and every interaction point. Some effective ways of lowering SaaS churn are: 1. Enhance Onboarding Experiences New customers are most susceptible in their first days or weeks. Poor onboarding is the leading cause of early churn. Develop a seamless, frictionless onboarding process that guides new users to the “wow moment.” Product tours curated for every user, tutorial emails, and welcoming in-app tips will have customers discovering value in no time. 2. Prioritize Customer Success A single unified customer success team can track account health, observe usage, and react early to customers who appear to be disengaged. A successful customer lifecycle churn management tool puts the customer in the best possible position to get the right support, training, and check-ins, before they become cancellation drivers. 3. Personalize Customer Experience Customers love personalization. Use past behavior history and goals to personalize product experience and communication. Personalized recommendations, milestone reminders, and feature suggestions drive stronger loyalty and better retention. Book Your Free Marketing Consultation 4. Get Customer Feedback Gather customer feedback regularly, particularly at milestone lifecycle stages, and pay close attention to it. Actively incorporate it into your product plan so that your customers can hear themselves. By listening to what hurts them, you can address problems in the bud before they become churning causes. 5. Provide Flexible Plans Fixed pricing and contracts deter customers. Try flexible price plans, annual payment discounts, or “pause” terms to accommodate different budgets and lower cancellation. 6. Boost Engagement Regular value-added content engages customers. Product update announcements, expert webinars, training sessions, and success stories highlight additional features and enable customers to optimize subscription value. Regular engagement boosts retention and loyalty. 7. Offer Customer Support Customers tend to leave after open cases of support or a poor support experience. Provide multiple channels of support, live chat, help center, phone support, and monitor first-response and resolution rates very intensely. Supported happy customers stick around. 8. Enhance Product-Market Fit Customers occasionally leave because they weren’t a good match. Periodically review customer bases and make sure messaging is aligned with actual product strengths. Focus on acquiring and retaining the type of customer who requires what you’re best at. How to Minimize Involuntary Churn Whereas involuntary churn is usually the result of dissatisfaction or misfit, involuntary churn is the result of non-failed payments, i.e., expired credit cards or failed transactions. It can be prevented by proper measures: Automatic Payment Retries: Use dunning measures, which retry failed payments after a few days. Payment Reminders: Alert customers when their credit card is expiring. A gentle reminder avoids declined payments. Provide an Alternative Payment Method of Choice: Provide customers with an alternative payment method of choice, such as PayPal, Apple Pay, or direct debit, to increase success rates. Leverage Payment Dunning Software: Payment dunning software will send reminders to customers automatically after they fall behind on a transaction, so follow-up is convenient and the administrative cost is minimal. Conclusion Reducing SaaS churn is crucial to thrive in the long term with SaaS. Understanding what SaaS churn rate is, monitoring user churn behavior regularly, and applying tested retention and dunning tactics will minimize loss and facilitate sustainable growth. Proactiveness in the detection of at-risk customers enables you to catch them with the right communications and incentives before they go away. In addition, frictionless payment and renewal, with multiple payments
How to Price Your SaaS Product: Strategies & Models That Convert Pricing a SaaS product is the one thing that must be resolved within any software organization. Get it right, and you’ll be on a sunny growth path, enjoying stable recurring revenues, customer retention, and long-term growth. Get it wrong, and you might end up with pricing that repels customers or leaves much money on the table. Creating the perfect SaaS pricing strategy is an art and a science of balancing business goals, competitive forces, and customer value. This article discusses the successful SaaS pricing models, the successful strategies behind them, and optimization techniques that help drive conversions and successful scaling. What is SaaS? SaaS Software is an abbreviation for Software-as-a-Service and refers to a style of on-cloud software distribution under which customers are charged an ongoing fee, typically monthly or annually, to use software operating on some other party’s server. The repeat customer revenue model does not compel customers to buy hardware or install the program on their machines. Instead, they simply access it from a browser or app. SaaS companies have reliable cash flow, recurring revenue, and chances to cross-sell and up-sell, all relying on successful SaaS product monetization. Why SaaS Pricing Matters? Your SaaS pricing strategy affects every element of your business, customer acquisition and retention, cash flow, and business value. Your SaaS pricing strategy, when done so clearly, will allow you to differentiate your product as premium, mid-market, or value-priced, allowing you to grow the customer base that you wish to serve. In particular, B2B SaaS companies must realize that their customers aggressively test value, scalability, and ROI. Pricing consistent with customer needs immediately can accelerate conversion rates and reduce churn, and poor or unresponsive pricing repels customers. Primary SaaS Pricing Models Some popular SaaS pricing models companies employ based on their business goals: 1. Subscription Pricing Strategy Subscription pricing strategy is the most common model in which clients pay a periodic fee, annual vs monthly pricing, for continuous utilization of the service. The majority of companies provide discounts on long-term contracts to create initial income and improve cash flow. 2. Usage-Based Pricing Also referred to as “pay-as-you-go,” usage-based pricing charges customers according to what they use, i.e., the number of transactions, API calls, or usage hours. Given developer tools and infrastructure solutions, this model increases with customer success and growth. 3. Freemium Pricing Model The Freemium pricing model provides a low rung of the software at no cost and charges a premium for the others. It may drive fast adoption and reduce customer acquisition cost, but conversion rates from paid to free should be monitored closely to ensure sustainably. 4. Value-Based Pricing In value-based pricing SaaS, organizations price their services based on the value that they bring to customers and not based on their cost. This allows them to capture a higher percentage of value created and requires an intimate understanding of customers’ pain points and willingness to pay. 5. Tiered Pricing SaaS price points offer different degrees of packages at different charges, and clients can choose the one that suits them best. This facilitates market penetration and allows for upgrades as companies grow. 6. Cost-Plus Pricing In cost-plus pricing SaaS, business organizations calculate the cost of delivering the software and then add a certain margin. Although the method is straightforward, the process will low-ball what customers will ultimately pay if the value proposition is massive. 7. Dynamic Pricing Dynamic pricing in SaaS adjusts prices based on demand, seasonality, or buying behavior, often through AI-based decision-making. The practice is not yet widespread in B2B SaaS, but it can generate the most revenue per customer possible. Book Your Free Marketing Consultation SaaS Pricing Strategies That Convert To convert and retain, you require more than a basic price model; you require proven SaaS pricing tactics. Below are a few tactics that work: Anchor High to Drive Conversions To position your highest-priced plan first on the price page makes the alternative options comparatively lower, one of the optimum psychological pricing techniques. Offer Yearly Discounts Engaging customers with multi-pricing rather than single-pricing by offering discounts can improve cash flow, reduce churn, and increase long-term loyalty among customers. Optimize the Price Page Your pricing page optimization matters. Nicely call out benefits, use testimonials or logos for trust, and offer live chat for questions. Keep your prices simple to avoid decision fatigue. Test Tier Names and Features Your list of features must meet customer needs at more than one level. Try to test out different feature name options, benefit copy, and trial duration to find out what will work best. Competitive-Based Pricing Use competitive pricing analysis to see how your product will compare with the competition. Attempt to differentiate by feature, service, or result, don’t simply price lower than the competition. How to Select the Ideal Pricing Model for Your SaaS The ideal pricing strategy for B2B SaaS depends on your target buyer, product maturity, and goals. Here is a quick checklist to guide your decision: Understand Customer Value: Are customers paying for features or results? That will determine whether value-based, usage-based, or subscription will be optimal. Measure Usage Patterns: Usage-based works well for varied usage (e.g., data software). Tiered pricing works well for stable, predictable usage. Test Price Elasticity: Would customers pay extra to have improved features? Test multiple SaaS pricing tiers and monitor conversion rates. Match with Go-To-Market Motion: Enterprise buyers prefer to purchase annually versus monthly, but SMBs prefer flexibility. Have Scalability in Mind: Choose a model that scales with customers, e.g., SaaS price points or seat-based pricing. Testing & Optimizing Your Pricing Pricing is never “set and forget.” Persistent testing is crucial to long-term success: A/B Test Price Points: Experiment with small price increments to see what customers will tolerate without higher churn. Track Usage & Customer Reviews:
Top 10 SaaS Trends to Watch in 2025 The SaaS business is changing at a rapid rate, reengineering business processes, communication, and growth. Cloud computing has developed as the leading technology over time, and SaaS is part of this movement. The SaaS business is expected to cross $1 trillion in 2025 on the basis of bleeding-edge technologies, changing user requirements, and growing demands for digital-first solutions. For companies to remain competitive, one has to be aware of the SaaS trends 2025 that will lay the groundwork anew. From AI-powered automation to skinny vertical SaaS solutions, SaaS’s future is all about intelligent, responsive, and highly integrated platforms. What is SaaS? SaaS Software as a Service is only one of the software distribution models in which the programs are maintained on the cloud and made available to users on the web. Rather than buying and installing software on dedicated devices, subscribers subscribe to programs that the service provider maintains and updates. It lowers IT costs, enables simple access, and facilitates collaboration anywhere. SaaS solutions are being embraced in almost every sector HR and accounting, customer relationship management, and healthcare. Technology will keep accelerating, and the future of SaaS will all be about even more automation, vertical solutions, personalization, and SaaS integration with AI with next-generation technologies. Top 10 SaaS Trends to Watch in 2025 1. AI-Powered Personalization Artificial Intelligence (AI) is not a luxury anymore, it’s an imperative to SaaS development these days. In 2025, AI will redefine personalization at a much larger scale. Platforms will provide smart user experiences, dynamic features, recommendations, and workflows that learn based on user preferences and behavior. AI-powered personalization will prevent churn and increase customer interaction. SaaS dashboards will become intelligent, real-time, adapting to the individual user role and requirement. Recommendation systems, predictive search, and chatbots will become the norm. Software: More and more software will be a dynamic software component and less of a static software component with AI in SaaS continuing to advance. 2. Vertical SaaS Will Flourish Instead of generic software, vertical SaaS platforms are made specifically for a particular business like logistics, real estate, education, or law. Focused on specific issues, such programs have better workflows, compliance mapping, and industry-specific integration. Monitor expansion in healthcare SaaS software handling electronic health records, telemedicine centers, and automated billing. Real estate SaaS software will provide end-to-end functionality like property listing, contracts, and client management. The growing need for specialization will drive the use of vertical SaaS solutions quickly, and they will become a leading source of driving SaaS product innovation. 3. Low-Code/No-Code Platforms Bring Everyone into the Game Low-code SaaS platforms will force developers, coding skills aside, more and more to develop custom tools and SaaS market growth 2025. Low-code development of apps makes app development democratized and enables marketing, HR, and sales departments to solve their issues without the need for developers. Graphical builders and drag-and-drop functionality will reside on a SaaS platform. Companies can quickly prototype and deploy internal tools at minimal cost. Create. This trend speeds up innovation by providing greater numbers of people with creation power across an organization. 4. Predictive Analytics Will Guide Strategy SaaS applications today provide reporting; SaaS applications tomorrow will provide foresight. With AI and machine learning, SaaS products will provide profound insights based on predictive models. These will guide marketing, finance, HR, and ops choices. Predictive software will detect customer churn, detect sales opportunities, and predict supply chain challenges. Marketing automation will recommend the best time to send an email or execute a campaign depending on how individuals act. Businesses that spend money on predictive analytics in SaaS will achieve a strong strategic advantage with data-based insight. 5. Automation Will Be the Default Since human beings getting things done at a breakneck rate is about to become a relic of the past, in 2025, SaaS software will provide end-to-end automation of business-as-usual tasks, anything from onboarding and billing to data entry and email reminders. SaaS products will provide Robotic Process Automation (RPA) for process automation. Automation will cross-organizational fences, wasting valuable time with cross-functional collaboration. As SaaS automation trends keep advancing, businesses will have more time to focus on strategic activities and less time on repetitive work. Book Your Free Marketing Consultation 6. Easy AI Assistance Across All Functions AI will be integrated into every SaaS tool, not just for feature enhancement. Look for AI in all layers, from backend processes to user tools. AI will be used on sales platforms to anticipate leads and suggest next-best actions. HR SaaS apps will screen candidates automatically and search for sentiment. Voice and text AI assistants will provide real-time assistance in apps. Software vendors will create better, intelligent, and context-based apps by turning their attention to integrating SaaS with AI. 7. Security and Compliance Will Drive Innovation With more and more common data breaches and with tighter and tighter new regulations (e.g., GDPR and HIPAA), SaaS providers are prioritizing security in the number one position. Security will be second only to performance or usability in 2025. Multi-layer encryption, live protection, and access controls will be the standard. Compliance reporting will be built into tools to make audits and certificates simple. Businesses will choose platforms that lead in SaaS security trends, ensuring their sensitive data and operations are protected around the clock. 8. Dynamic and Transparent Pricing Models Users are demanding more flexibility in how they pay for SaaS products. In 2025, rigid monthly pricing will give way to outcome-based, usage-based, and hybrid pricing models. Companies will pay based on data usage, API calls, or business outcomes. Transparency-priced calculators and tailor-made add-ons that can be constructed modularly will enable customers to select what they truly require. These SaaS pricing models will enable organizations to match expenses with perceived value obtained, resulting in long-term customer satisfaction. 9. Retention will Trump Acquisition Customer acquisition is costly and growing more
What Is SaaS? A Beginner’s Guide to Software as a Service Ever since the beginning of the age of computers and digital technology, companies and individuals have depended increasingly on software to carry out day-to-day tasks, communicate with each other, keep information stored, and perform processes automatically. Some of the most significant advances in history have been the invention of cloud-based software, that is, Software as a Service (SaaS). Precisely what is SaaS, anyway? How are folks using it, and why is it so globally popular among so many different types of industries? This beginner’s guide contains everything you ever wanted to learn about SaaS from the way it works to its advantages, examples, and problems prior to implementation. What Is SaaS? SaaS meaning is “Software as a Service,” which is an on-demand delivery model for software where a third-party company owns the software and hosts it on the internet to customers. Rather than installing and maintaining software on individual computers or internal servers, customers can access web browser-based SaaS applications on a pay-per-use basis. The SaaS definition can be employed to articulate a wide variety of software solutions, from productivity suites like Google Workspace to customer relationship management (CRM) solutions like Salesforce. Unlike traditional software, which has to be installed physically and updated periodically, SaaS provides perpetual access, ongoing updates, and minimal setup. History of SaaS traces back to the 1960s when mainframe computing rendered sharing of software on use inevitable. The modern SaaS model which started gaining momentum in the course of the late 90s was pioneered by Salesforce through offering web-based software. SaaS has since become a ubiquitous application structure of business establishments of any size implementing software. How Does SaaS Work? To learn about SaaS, consider renting software instead of purchasing it. SaaS applications are stored on the provider’s servers. The provider does all the work: hardware, software updates, security, and infrastructure. Users just log in over the web to access the software. The SaaS model is usually accompanied by recurring fees, annual or monthly. Both the user and producer benefit from the model. Producers get stable revenue, while users avoid front-end expenses and pay when they use. One of the advantages of SaaS includes: Multi-tenancy: Various users share one infrastructure but maintain their data segregated. Automatic updates: Features and fixes are provided without involving users. Accessibility: Individuals can utilize software from anywhere they are accessing the internet. Scalability: Simple to scale up or down usage depending on the requirement. Advantages of SaaS Advantages of SaaS are many and have made it present in nearly every sector. Below are the main advantages: Cost-Efficiency: No hardware or software acquisition cost. There is a subscription fee, which spreads the cost over time. Ease of Use: The majority of SaaS solutions are easy to use and don’t demand technical expertise to become operational. Availability: Clients can access software through any device that is networked, which allows working remotely and communicating. Scalability: The companies are easily able to scale up and down with no concern for infrastructure. Security: The best security features are readily available, including encryption, backup, and compliance certification of the SaaS vendors. Automatic Updates: The security patch and updates are automatically applied. Integration: SaaS applications will typically integrate with other company software to enable process streamlining. There are SaaS pros and cons, but even with those pros. Some of the cons include the absence of control over customization, reliance on internet connections, and vulnerability to data security breaches if left unattended. Book Your Free Marketing Consultation Common Use Cases of SaaS SaaS applications today touch nearly all personal and business operations. Below are some of the most utilized SaaS businesses and software: ● Collaboration & Communication Remote work necessities include tools such as Slack, Zoom, and Microsoft Teams. ● Customer Relationship Management (CRM) Salesforce, HubSpot, and Zoho CRM are programs that manage company sales pipelines and customer relationships, similar to how Clinic Management Software helps healthcare providers streamline patient interactions, appointments, and administrative workflows. ● Accounting & Finance Easy-to-use bookkeeping software is offered by cloud-based solutions for small and medium-sized businesses, such as QuickBooks or Xero. ● Project Management Asana, Trello, and Monday.com make task management and collaboration with a team extremely simple. ● Marketing Automation ActiveCampaign and Mailchimp make email marketing, email segmentation, and lead nurturing easy. ● E-Commerce Both Shopify and BigCommerce allow businesses to create storefronts online without being experts in web development. ● Human Resources BambooHR and Gusto help in automating Human Resources services, such as onboarding, payroll, and benefits services. ● File Storage & Sharing Google Drive and Dropbox enable one to save business and personal files in the cloud. SaaS in healthcare is fast developing in the niche markets with electronic health record (EHR) systems, telemedicine software, and patient scheduling applications Key Considerations Before Choosing a SaaS Product There are numerous benefits of SaaS, but choosing an appropriate one requires vigilant consideration. The following are key things to consider: Data Security and Privacy: Consider how the SaaS provider approaches data backup, data security, and regulatory compliance (e.g., GDPR, HIPAA.). Pricing Model: Find out how much it will cost in total: subscription fee, fee per extra user, license to watch. Integration Capabilities: Ensure that the SaaS product fits into your existing equipment and infrastructure by not causing too much of a wrench in your operations. Service Level Agreements (SLAs): SLAs have guarantees of uptimes, support response, and support that is important to the mission-critical applications. Scalability: Go with a platform that scales along with your business and has scalable pricing plans. SaaS vs PaaS vs IaaS SaaS is one of the three basic models of the long list of cloud computing. The other three models are PaaS and IaaS models. SaaS (Software as a Service): pre-installed software over the web (e.g., Gmail, Dropbox). PaaS (Platform
Product-Led Growth (PLG) in SaaS: Strategy, Benefits & Best Practices In the fast-changing and competitive SaaS landscape of today, Product-Led Growth (PLG) is now among the most successful ways of scaling SaaS companies. Compared to traditional paradigms of marketing and sales, PLG trusts in enabling the product itself to be responsible for user acquisition, retention, and expansion. By doing this, the process puts the product experience at the center of the customer journey, and it results in more natural and scalable growth. This guide explores what PLG is, why SaaS cares about it, its basic building blocks, most popular benefits, and best practices to make it successful. What is Product-Led Growth (PLG)? Product-Led Growth (PLG) refers to a business strategy where the product itself is the key driver of customer acquisition, activation, and retention. In a PLG model, users self-discover and start using a product themselves, typically through a freemium in PLG or trial, isolated from contacting sales or support teams. This is a reversal of the old funnel. Instead of sales or marketing efforts first, users experience the value of the product directly. It’s a bottom-up strategy with an emphasis on a user experience that effortlessly turns free users into paid customers. One famous product-led growth example is Slack, which was broadly adopted through its clean design, easy onboarding, and ability to solve communications pain points directly without needing a long sales pitch. Why PLG Matters in SaaS? SaaS companies exist on scale, automation, and retention. PLG just perfectly fits these needs. Traditional go-to-market strategies outsourced sales and expensive marketing may struggle to keep pace with the expectations of current B2B and B2C buyers. They would rather “try before they buy,” educate themselves, and self-onboard. This is where PLG shines. It allows users to learn the product value upfront, with more control and confidence. Contrast product-led vs sales-led growth, PLG offers a less expensive and more scalable path, especially for companies targeting global markets or SMBs with low contract value. Core Elements of a PLG Strategy To build a successful PLG motion, SaaS companies need to be sensitive to several fundamental building blocks: 1. Frictionless Onboarding A successful PLG onboarding experience allows customers to learn and gain access to the core value of the product in an instant. Think guided tours, templates, interactive walkthroughs, and contextual tips that reduce time to value (TTV). 2. Self-Serve Infrastructure One of the basic foundations of the self-serve SaaS model, it is about allowing customers to sign up, upgrade, bill, and even cancel without ever having to talk to sales or support. One of the most significant considerations for reducing customer acquisition cost (CAC) and maximizing scalability. 3. User Activation User activation in PLG is the moment when a user receives a beneficial consequence from the product. Activation matters since that’s where the periodic user is turned into a potential long-term customer. Activation metrics help in bringing forth friction points in the user experience. 4. Product Qualified Leads (PQLs) Product qualified leads (PQLs) are users who have experienced notable product value and are very likely to be paying customers. Unlike regular MQLs or SQLs, PQLs are based on usage patterns and in-product signals. 5. PLG Metrics Track the appropriate product-led growth metrics to refine your strategy. These are activation rate, time to value, expansion revenue, product engagement score, churn rate, and PQL conversion rate. Book Your Free Marketing Consultation Benefits of Product-Led Growth Embracing PLG releases numerous strategic advantages for SaaS businesses: ● Lower Customer Acquisition Costs Since users can onboard themselves and experience the product without any direct intervention from sales, CAC declines significantly. ● Lower Time-to-Value (TTV) By making it easy for users to view immediately how the product can help them, PLG makes the adoption period shorter from sign-up. ● Higher Retention and Expansion Heavy users are more likely to stick around, add on features, and upgrade plans. ● Scalability PLG makes it possible to onboard thousands (millions) of users simultaneously without requiring proportional sales efforts, and it’s ideal for explosive growth. ● Improved Customer Experience PLG places the power in the user’s hand, allowing them to find out, experiment with, and purchase on actual product experience. This results in increased satisfaction and trust. The following are only a few of the benefits of product-led growth, but collectively, they can be a gigantic competitive advantage for SaaS companies today. Best Practices for Implementing PLG in SaaS To successfully convert or launch with a PLG motion, remember the following tested and proven best practices: ● Design for the End User Create product features and design for what the end customer needs, not just the buyer persona. This fosters adoption and advocacy on the grassroots level, subsequently influencing top-down buying decisions. ● Simplify Sign-Up and Onboarding Use one-click sign-ups, minimize unnecessary form fields, and get users to their “aha moment” as quickly as possible. A strong PLG and onboarding experience is essential in locking value early. ● Leverage Freemium or Free Trials Afreemium model in PLG allows users to learn about the product without friction. Make your free version provide real value, but holds back enough premium features to necessitate a step up. ● Measure and Refine PLG Metrics Track each touchpoint from onboarding to feature adoption to locate where users drop off and what drives activation. Use product-led growth metrics to refine and tailor user experiences. ● Enable Viral Loops and Referrals Attributes such as “invite a team member” or “share a report” enable users to proliferate the product within and between organizations, fueling organic growth. ● Bring Teams Together Around the Product PLG necessitates cooperation between product, marketing, sales, and customer success. Everyone needs to be aligned on common metrics, e.g., PQLs and activation rates. ● Create SaaS Growth Strategies Around Usage Different from traditional strategies that focus on campaigns and leads, SaaS growth tactics for PLG are built around driving growth, engagement, and usage from within
