How to Grow a SaaS Company with a SaaS Growth Strategy
Revenue Architects for Software and SaaS Companies
Ready to apply a B2B SaaS Growth Strategy?
To Grow a SaaS Company, start with Data Driven Insights
What's the most effective way to grow a software-as-a-service company? That's a question best answered with data.
Research findings published in the Business Growth Report found that the highest growth SaaS companies (i.e., the Best-in-Class which achieved the top 15% growth) excelled using a mix of 9 revenue growth programs.
These 9 programs stood apart from all others in their ability to deliver the most significant and sustained revenue impact. A relative comparison showing how these 9 programs were applied by each software company growth archetype is displayed below.
Here are some of the research insights that share how these programs impact company growth.
Growth Strategy
The growth report research shows software companies that actively managed a SaaS Growth Strategy achieved 2.75 times greater year over year revenue growth than those who did not. The Growth strategy is not your business plan. It's the selected revenue programs and sequenced roadmap to achieve targeted revenue results in the shortest time and least cost.
As demonstrated by the performance results of the Best-in-Class SaaS firms, advancing your SaaS growth strategy can increase annual revenue growth by 1.9 to 2.9 percentage points and EBITDA margins by 2.5 to 3.4 percentage points.
Product Innovation
Product innovation significantly impacted SaaS revenue growth. Software publishers with the highest new revenue streams invested 17-21% more funds into transformative innovation. On average, about 34% of their innovation budget was directed to transformative innovation. By comparison, software publishers with lower new revenue streams and more moderate revenue growth allocated more than 90% of their budget to incremental innovation, which is typically limited to software updates.
Product innovation research published in the Business Growth Report found that shifting the innovation budget allocation toward more transformative innovation can achieve an increase in annual revenue growth of 1.8 to 2.9 percentage points and EBITDA margins by 2.2 to 3.3 percentage points.
RevOps
The research found that while only 14 percent of software companies managed revenue centrally using a Revenue Operations (RevOps) model, 87 percent of that small cohort was made up of the highest revenue growth companies (i.e., top 15 percent). This inverse relationship reveals that about 9 out of 10 of the highest growth SaaS companies manage revenue responsibility differently than all other lower growth companies.
The data show that centralized RevOps revenue management increases annual revenue growth by 1.3 to 2.4 percentage points and EBITDA margins by 2.3 to 3.4 percentage points.
Corporate Culture
Software publishers that cited corporate culture as an active part of their growth strategy achieved an average of 40% higher revenue growth than those who did not. They also achieved 15% higher revenue per employee and 8% lower staff churn. The data that linked company culture to business growth found that creating an intentional and proactively designed growth culture can grow annual revenue from 1.7 to 2.5 percentage points and EBITDA margins by 2.2 to 3.1 percentage points.
SaaS publishers that realized the highest revenue growth assembled a combination of the 9 most impactful revenue growth programs. That helped them outperform competitors and achieve their SaaS growth strategy.
These 9 programs are solidified into evidence-based best practices that provide prescriptive implementation frameworks to be replicated by others seeking to achieve similar growth results.
Growing your SaaS Business is our Business
Our singular focus is to help clients implement best practices that accelerate revenues and profits.
Our evidence-based revenue growth best practices are validated by SaaS industry research and top performers. They include prescriptive frameworks, purpose-built measurement systems and integrated technology automation.
And to de-risk our programs, our services include program management, organizational change management and governance.
Johnny Grow Signature Services
Company Growth Strategy
Companies with data-driven growth strategies achieve 2.8 times higher annual sales growth than those without
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RevOps
SiriusDecisions reports organizations that deployed RevOps grew revenue three times faster than those that didn't
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Rev Tech Stack
Growth technologies and organized RevTech stacks achieve double digit ROI and scale company growth
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Product Innovation
Create competitive differentiation that increases margins, accelerates revenues and grows companies
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Customer Growth Strategies
Increase customer expansion and retention; two factors that deliver significant and sustained sales growth
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Corporate Culture
Build a growth culture to drive double digit improvements to labor productivity, customer engagement and sales growth
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Sustainability
Sustainability programs to lower carbon emissions, reduce operating costs and grow revenues
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M&A
Use M&A to accelerate organic growth, leapfrog competitors, create new revenue streams and quickly boost top line revenues
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Business Automation
Simplify, streamline and automate business processes to improve productivity, lower cost and drive operational excellence
Learn MoreResearch Shows What the Highest Performers Do Differently
The Business Growth Report answers the question of how to grow a SaaS company. It analyzed and ranked the growth strategies, methods and technologies that delivered the biggest impact to company growth.
The report identifies what the highest growth companies (i.e., the top 15 percent) do better and differently than all other lower growth companies – and how they do it.
It provides data-driven findings and insights that allow others to replicate their extraordinary results.
Software Company Growth Insights
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How to Create a Hypergrowth SaaS Growth Strategy
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Visit the SaaS Best Practices Hub for more research findings, best practices and enabling technologies