So, with five growth points to consider, which do you focus on first?
Software companies like HubSpot, Shopify and Slack didn’t get there overnight - they introduced each new strategy over time, building up to the ultimate Five Star approach.
But what does that path look like for your software company?
Through our research, we found it - almost always - follows the same pattern, depending on whether you’re a product-led or sales-led organization.
The five-star growth strategy for product-led SaaS
Product-led software companies, like Slack for example, will first maximize and then monetize their user base.
Introducing Freemium pricing models - where anyone can sign up - means that these companies can reach a global audience from day one to optimize their software for all the traffic and users that are outside their home market - that’s a tick for internationalization (✔).
As their user base grows, product-led software companies tend to grow best by selling through team plans and enterprise deals to maintain high year-on-year revenue growth. This takes on the moving upmarket strategy nicely.
Overlaying a sales-assisted motion to a product-led approach is what we call B2B growth sales. It can help you hit those five growth stars, and more. More on this specific strategy further down - don’t you worry.
The five-star growth strategy for sales-led SaaS
Sales-led organizations, like Salesforce for example, will first need to find the pricing model that can be negotiated in a sales process, (including the value metrics their market understands). Hello, monetization ✔.
From there, the focus shifts to maximizing the size of the deals within that sales model with bigger and bigger accounts. You know what that means? They’re moving upmarket.