How PLG Companies Can Optimize Their Sales with SubscriptionFlow
According to a report by Statista, in 2021, the net worth of the SaaS business market was $152 billion, and it will reach a worth of $208 billion by 2023.
So, the SaaS market is growing.
Good! Businesses are expanding, and people are getting employment.
But here, you need to bump the breaks. The expansion in the market means more competitors and sharing of customers and clients.
You will have to fish your customers in the same highly competitive market. SaaS product-led growth (PLG) companies that aim to meet their sales target (SaaS sales optimization), will need to focus on the product value and then market it accordingly.
Also, PLG and SLG (Sales Led Growth) both need to be taken side by side. The sales team will help you monetize the value, capability, and performance of your SaaS product. Only then you will achieve your revenue targets.
Also Read: Product-Led Growth for Your SaaS and B2B Business: A Strategy that Thwarts Traditional Growth Models
Product-Led Growth & Customer Segmentation
When it comes to product-led growth, businesses put their product at the centre and make their sales targets around the customer’s perception of the product (value-based pricing). Here, they also segment the customers depending on the usage of their product.
- Some customers are inactive even if they are onboarded
- Some customers commit to get onboard but go inactive
- Some customers are active throughout
PLG is incomplete without segmentation of the customer base because the intent of the customer provides the foundation on which you base PLG strategy. By opting for PLG, you are completely dependent on your SaaS product for more sales and revenue. However, you need an understanding of the entire customer base so that you can improve the growth of your product.
SubscriptionFlow offers retention management where you get a clear visualization of the health score of customers. If the customers’ health score is not good, then your PLG strategy needs improvisation.
You have done your part.
Let SubscriptionFlow take it from here!
subscription management software.
Shorter Sales Cycle
Yes, PLG will help you shorten the sales cycle. And a shorter sales cycle means more sales which means more revenue. Here is how PLG will shorten the sales cycle to give a boost to the sales of a SaaS product:
1. Customer Onboarding
When your focus is product-led growth, there is no need to manually onboard customers. The SaaS application has a built-in helping mechanism for onboarding in the form of messages, popups, user guides etc. All the resources that you otherwise needed to onboard a customer can now be reserved.
2. Better Sales Funnel
As onboarding is easy when SaaS companies opt for PLG, the opening of the sales funnel is wider. You do not need any demos, videos, or such things to onboard more and more customers. The product is developed in a way that it provides users with what they want. It is better to go for freemium or free trials in case of product-led growth.
Lower Cost to Acquire Customers
In the SaaS business industry, you will find many people emphasizing customer retention rather than customer acquisition. Especially, when the economic downturn is rampant, the focus should be retention not the acquisition of more customers.
So, PLG assists in customer acquisition which is part of sales. You will save a significant amount while acquiring customers. you will not need to hire more sales representatives to be all-time available for customers. Also, customer service and customer care departments will be at ease. So, PLG is one of the sales optimization sales practices. You can channel their potential for other tasks rather than mere tending to the customers.
Improved User Experience
Customer experience is the backbone of any SaaS business. Customers come back only when they are offered the optimal customer experience. In the SaaS business world, the applications and software that the customers purchase sometimes are so arcane that they cannot be understood. Resultantly, SaaS companies either send user guides or conduct training which is good. But in the case of PLG, you do not need to bother about such things because the product is self-explanatory. The user interface, chatbots, popups, messages, emails, and much more make users self-sufficient or educated enough to use your SaaS product.
And you save your time and resources that can be spent on many more business activities.
Account Expansions
When it comes to the sales of SaaS product-led growth, account expansion has significant importance. for instance, the SubscriptionFlow—retention management platform provides you with a complete map of the customer journey. This customer data is gold in the digital world. And the value of this gold depends on your data analytics and reporting—again SubscriptionFlow has mastered the art of data mining, analysis, and reporting.
So, get the data insights, and sell the add-ons, newer versions, and a lot more as per your cross-sell and upsell strategy. Product-led growth makes it more feasible to convince customers for account expansion because you identify the pain points of the customers and offer them SaaS solutions accordingly.
Also Read: How SubscriptionFlow Helps SaaS and Subscription Business Market To Gear Up for Recession Calls
Conclusion
Now that the recession is being forecasted, it is the best time for SaaS businesses to start working on their product-led growth. And when it comes to the most important phase of this journey—data analysis, then SubscriptionFlow is all available to facilitate SaaS businesses. This platform is capable of data mining, analysis, and reporting so that you get the customer health score. Based on this health score, you can not only strategize for retention but also make better product-led growth.
schedule a demo with SubscriptionFlow now to know more about a lot more features for your PLG-focused SaaS business.
