#2: How to solve for the state of SaaS in 2023
So what are growing SaaS businesses doing about growth in 2023?
Our data shows that faster, growing companies are getting an increased portion of their revenue from existing customers by upselling to larger plans, selling new products, new services or new add-ons. Yup, you guessed it: expansion revenue. This comes at a lower cost and greater growth efficiency.
Additionally, OpenView's data reveals a correlation between PLG tactics and enhanced growth efficiency, characterized by a quicker CAC payback period for the business.
Product-led companies that we are tracking are adding on sales teams in an effort to mature. Some do this early on, but certainly by the time they get to 15 or 20 million of ARR, they will have a sales team on top.
This hybrid motion is happening across every single segment. When you look at the different growth levers that drive fast growth, one thing that stands out is those tracking and using this hybrid strategy.
Ultimately, internationalizing your product and marketing is critical. This includes using multiple payment methods, different pricing models, and adjusting willingness-to-pay by region. As shown by the data, these tactics demonstrate a clear correlation with accelerated growth.
With the state of SaaS in 2023, firmly in our minds, let’s get onto some key Paddle Billing updates revealed at Forward.