Boost SaaS Sales with UX to Drive Product-Led Growth

Are you trying to go for product-led growth for your SaaS product? Or want to understand how improving the UX of your SaaS product will boost your product-led growth? That requires understanding the UX part with greater details. Requires better analysis, research and exploration. It appears complex, doesn't it? No need to worry. We have done this for you. Here is the detailed blog that will answer all your questions. Let’s explore.

The SaaS model is really a great leap for the business to get fast growth, however it has its challenges like customer acquisition and retention, etc. To overcome such challenges you have to improve the user experience of the product. It can be done by implementing SaaS integration services. And in order to boost the SaaS model’s revenue you must go for a Product-led growth approach which keeps the product at the front of marketing.

Product-led growth is a very popular strategy in the market to boost growth with lower acquisition cost and churn rates. This method is centered around the product itself. It is widely used by SaaS companies because their product is their core component. As per the reports 58% of the SaaS companies have implemented a product-led growth approach. Let’s start with understanding what product-led growth is.

What is Product-Led Growth?

When a business is completely driven by the product, then you can say that business is following a methodology known as Product-led growth (PLG). In this method product is the main reason for customer acquisition, retention, activation, scalable expansion and satisfaction.

In the non-PLG businesses, the sales department is the core component to increase revenue, whereas in PLG businesses, the product itself is a revenue generator of its own. It is the central idea of SaaS companies, because they too completely depend on their software. In order to boost SaaS sales, we need to focus on UX to drive PLG.

Why Product-Led Growth For SaaS?

Product-led growth methodology is really beneficial for SaaS companies. It really saves a lot of time and money for the brands. Every team will be determined to make a superior product which will stand at the top of the market leading to higher customer retention rates, sustainable growth, lower customer acquisition cost and best customer experience.

Higher Customer Retention

As we know, the PLG model is centered around continuously delivering the value with the help of the product, it helps brands in having higher customer retention rate. This is because customers feel they are receiving higher value products for the price they pay, which keeps them sticking to the brand reducing churn rates.

Sustainable Growth

As per the reports, the SaaS companies with PLG model had growth rate of 50% whereas on the other side traditional SaaS companies had only 21% growth rate. This shows that the PLG model is made for scalability. Because of its freemium or free trial methods, a small percentage of free users convert into paying ones, significantly increasing growth rates.

Lower Customer Acquisition Cost

The best thing about the Product-let growth model is that the product markets itself. You must have come around various products that offer free trials of their premium services. And you might have also bought premiums of some of the products. Here, they got a new premium customer without spending much. This reduces their customer acquisition cost, you can do it too to your SaaS product and save a lot of time and money spent on marketing.

Enhanced Customer Experience

Congratulations, you saved a lot of time and money by lowering your customer acquisition cost. You can use these valuable resources to enhance the customer experience of the SaaS product. The PLG model is designed to allow users to understand the product completely before purchasing it, improving the overall customer experience.

Benefits of UX in Product-Led Growth

UX plays a key role in Product-led growth for SaaS companies. If the UX design of your product is great you will automatically see the increase in customer acquisition and retention rates. With benefits like sense of ownership, the snowball effect and data-driven product development you will see your product grow.

Sense of Ownership

Both intuitive UX and product-led growth give a sense of ownership to the users. Imagine combining them for your next product. It will allow users to understand and adapt to the product at their pace. This will help you make informed decisions based on the demands and needs.

The Snowball effect

We know that word-of-mouth publicity is the best way to grow and promote your product and brand. Shift the focus and resources from traditional marketing to betterment of the UX and you’ll see the snowball effect happening. It will start as small but will quickly become big forming a self sustaining loop of customer acquisition.

Data-Driven Product Development

As per Mckinsey’s report, brands with data-driven product development acquire customers 23 times more than their competitors and also increase their profit by 8%. Product-led growth models can help you identify pain points, gain user insights. Understand user behavior and more. It will help in enhancing the UX design of the product.

How UX Can Boost SaaS Sales to Drive Product-Led Growth

UX can become the engine to drive product-led growth to boost SaaS sales. We know that user experience (UX) of the product determines its success rate. If the UX is good it will have better adoption rate, lower churn rates, reduced cost of acquisition and other benefits. Here’s how UX can boost SaaS sales for product led growth.

Focus on Converted Customers

According to Pareto principle, 20% of the customers generate about 80% of a company’s revenue. Focusing UX of your product-led growth on those 20% of the customers will help you understand their behavior and gain valuable insights about their unique requirements & pain points.

Boost Customer Retention

Focusing on those 20% customers doesn’t mean that we should ignore the rest of the customers, but rather compare the feedback and behavior of both. It will help us determine why the rest did not convert and how to convert them, boosting the customer retention rate of the product.

Prevent User Churn

Imagine 90% of potential customers who could purchase your SaaS product leave because of bad UX. Sounds pretty concerning. According to reports, 90% of the users stop using the product because of bad user experience. Prevent user churn by improving the UX of your SaaS product with the help of data-driven insights.

Minimize Time to Value (TTV)

We live in the fast moving world, where the attention span of an average internet user is 8.25 seconds. And guess what, who our potential customers are, yes it's the internet users. If it takes less time for customers to experience the benefits of the product, then they will adopt the product quickly. You can educate customers, deliver value in phases to reduce TTV.

Where Does TheFinch Design Come in Between?

Overall, we can say that the product-led growth can be really helpful for businesses who invest in their products more than marketing. PLG is a go to strategy that is backed by a robust SaaS product. However, the product is backed by the UX. You should also focus on the UX of your product before entering the game of PLG. You can hire us to help you improve your product’s UX and drive the SaaS sales with the PLG model. At XYZ, we have experts of both UX and PLG models, who will boost your growth. Contact Us for more details.