User growth has become the focus of all SaaS businesses (including MyCloudIT) and ISVs. User growth can determine how your business is doing. By factoring in your churn, you can get a pretty good idea about where you stand. Keeping your user growth rate above your churn rate is key.
Something to keep in mind, while marketing and advertising can play a role in user growth, it is typically more focused on gaining the interest of the potential lead. After that, there are several things you can be doing internally to help convert the leads to new users. Let’s take a look at 3 strategies for user growth.
If you don’t currently use Net Promoter Scores (NPS), we’d encourage you to look into it. NPS not only can help with user growth, but with customer retention as well. Your NPS will help you better understand customer satisfaction and which customers fall into the promoter, passive, and detractor categories. By looking through the feedback, you are able to also identify trends such as features or functionality that is missing or if specific types of customers are having issues. You are able to use these patterns to help you look for areas of improvement in onboarding, support, and sales.
And don’t be afraid to set NPS score goals with the entire company. By bringing everyone in, you’ll be able to ensure actions are taken when you identify a trend or determine something needs to be changed in one of your processes.
2. Experiment with Pricing
There are a few things to keep in mind when experimenting with pricing, but overall, this could help increase the number of new users. When analyzing your current pricing, this is a good time to also reexamine your freemium offer, if you have one, and see if it is playing a part in user growth or stalled growth.
A few things to remember:
- Don’t test on your current customer base. Only experiment with small groups of new sign ups.
- Get feedback from your current customers on the pricing experiment.
- Run experiments frequently to continuously evaluate pricing.
3. Identify Key Features You’re Missing
Identifying key features or functionalities that you are currently missing helps keep your product roadmap current; there may be features already on the roadmap that you can move up in development because of large customer demand. And make sure to ask your sales and support teams who interact with the customers one on one. They may know of something many customers ask about, but it hasn’t been added to the product roadmap.
In effort to account for everything and not lose any information, we strongly suggest finding a program that can track the product suggestions, demand, and the status of it. There are many programs out there, so find one that works best for your team.
To wrap up, we want to share a helpful tool you can use to give you a better idea about where you’re at and if you need to look at making changes. The SaaS calculator will calculate your growth ceiling and let you know how much longer you have if you continue as is. If you’re interested in reading more about metrics, check out the SaaS Growth Metrics.