With the advent increase in science and technology, organizations are overwhelmed with the need to upgrade massively in their strategies in order to meet up with their set down financial forecast in revenue to be earned monthly and annually.
To this effect, there have been various strategies in marketing by various organizations specially set up to gain massive returns on investment monthly and at the end of the year. However, most marketing strategies created and designed to target a large number of clients involves lots of funds as massive funds are spent to target clients, investors and customers all around the globe.
Due to the financial burden placed on global and massive impactful marketing, issues were then raised on measures to adopt with little or no infringement on financial and marketing budget because some cases have been observed where finances would be spent on marketing and yet yield less result.
Apparently, it’s quite obvious that there are so many things to put into consideration in marketing so as to maintain quite a safe stance at the end of the whole marketing strategies and tools employed.
To ensure massive returns or quite a number of returns on investments made on a program or set of programs, it’s expedient to adopt insanely workable strategies.
Now, how do you increase the MRR and ARR of your SAAS startups without increasing your SAAS budget?
Good question! There are quite a number of ways which are pretty integrated, but before we go into details, we would briefly be looking at MRR and ARR.
What is MRR?
MRR means monthly recurring revenue and monthly recurring revenue can be explained or described as the income a company or organization sufficiently relies on to come into the their financial accounts every 30 days.
In other words, it is the predictable financial returns at the end of each month. These reports are made possible by some method of book keepings, data analysis and analytic tools amongst others.
How is it used?
MRR is used to test performance report and this can be seen in MRR Customer Lifetime Value, MRR Cohorts, MRR momentum etcetera.
What is ARR?
ARR is a term to mean Annual recurring revenue which can be explained as the financial projection for the year.
ARR is used by SAAS and subscription businesses or businesses that have a contract agreement. It is designed to include contractual agreements, some fixed subscription fees which are designed to last for a year.
With ARR, there is a detailed correlation between generally accepted principles revenues especially since it’s a financial forecast for a longer period of time.
What is important about ARR?
- ARR can be obtained from new customers, clients and investors
- ARR can be obtained from existing customers
- ARR occurs through upgrades in program software and also due to its principle methods, it is mostly used in businesses such as B2B subscription businesses, SAAS and related businesses.
Uses of ARRs
- ARR gives a view of the trends in the market
- ARR is used to predict generally accepted accounting revenue
- It helps to observe the trends in average selling price
- It shows the existing contractual agreements of existing customers and new users
STEPS TO TAKE IN INCREASING THE MRR AND ARR OF YOUR SAAS STARTUPS
GET A GOOD TEAM
Increasing your sales start-up can be quite a task especially if there is no proper planning involved. One of the things to take into consideration is to have a team of highly intelligent individuals with the skills and technical know-how on product marketing delivery and market knowledge. With a team of highly intelligent and business savvy individuals, you are sure to have massive explosion in your financial turn-over at the end of the month, more so annually. In an SAAS organization, knowledge is crucial and in order to keep this knowledge well updated and upgraded in software solutions, you surely need a very good team that is reliable, innovative and inventive. Their innovations and inventions sparked up from brilliant ideas will give insights to a whole lot of marketing fails, untouched grounds and profitable marketing techniques.
GET A REVENUE GOAL
Having gotten a group of reliable, responsible and knowledgeable team, a cursory look into the financial and revenue goals of the organization will be adequately tabled for discussion. ‘’A dream will forever remain a dream until it is realized, only then will it become reality’’. To get your dream in this case, your financial goal or revenue goal into a workable and realizable reality, you will have to clearly draft out one or more.
- What are your revenue goals?
- Are they achievable? If yes, what are the steps to take to achieve them? If no, what are the steps to further actualize them?
- How do we go about actualizing them?
All these need to be put into consideration upon clearly drafting your SAAS revenue goals. It doesn’t stop here. Who better to actualize your revenue goals, if not your team? It’s imperative to draft your revenue goals then tender these goals to your team who in turn will adequately and accurately apply the right marketing tools mostly inbound marketing tools to actualize your goals and vision at the end of the month and year. Below are a few inbound tools used by SAAS team to actualize their financial revenue and they include:
- Facebook marketing
- YouTube Marketing
- Blogs and articles with detailed content write ups on products and services
- LinkedIn marketing
- Instagram Marketing
- Influencer Marketing
- SEO (search engine optimization)
- Social media optimization
- Branding or products
- Free trial/ demo for a period of 30 days for new users
- Free premium services on products
- Through the use of referral links
- Through the use of e-mails
- Through short pop-up notifications with catchy headlines and so much more.
WORK ON LEADS
Once you have successfully given your team heads up on your financial revenue and goals, appropriate steps and measures are taken to actualize them. In order to actualize these goals, emphasis is then placed on creating awareness in the market and attracting prospective customers and investors because the increase in customers invariably means an increase in financial revenue. So, your team makes use of the needed marketing tools through strategic planning and infiltrates the market with mouth watering and eye popping features and services that clients just can’t refuse. It doesn’t stop there, they say once you are on a path to success, ‘’you fight to the top and more so fight to remain at the top’’, this is the crucial part.
KEEP YOUR LEADS INTERESTED
Now, you have gotten your clients, what next? You don’t just keep them hopping around aimlessly and hopelessly. Besides, nobody wants to engage in un-profiting and un-educating ventures. You will have to adopt measures to keep them interested in your digital invention with features needed for them to keep on.
Also, there are so many competitors out there in the digital world with constant hands on deck working earnestly and tirelessly to increase their customer base. This alone is enough to keep you on your toes because once you lose a customer or client, you invariably lost a thousand! Now think how that would affect your projections for your start-ups, not-good at all.
To keep your leads well interested, they have to be nurtured through regular follow-ups through e-mails, quick surveys, calls from customer service representatives and also bonuses with exciting offers for upgrades and the likes. Customers too like to receive so much benefits from so little and your organization wants so much from so little also, you as a SAAS start up business owner, will have to put this into consideration. Not to worry, first of, you already share a common ground with your customers in terms of need.
CREATE EXCITING PACKAGES
This is also one of the ways of keeping your users actively involved with your brand. Through the invention of creative and exciting packages that are user friendly with the best of UI/UX experiences, customers and also incoming users are sure to stay and be actively involved. Also, because your customers would like to actively participate and reach a mark with increased benefits, they would also indirectly become a tool used to bring massive returns on your SAAS start-up. Can you beat that? I know right?
Owning a business, knowing the right strategies to become a foremost leading brand in the world is even better. So, in order to adequately meet up to society’s demands, clients and customers need, investors demand and also meet up with increasing your monthly returns revenue and annual returns revenue, the following highlighted points and more need to be put or better still actively taken into consideration.
The world is getting more digitalized by the day, and so the question still remains, how else do you stand out and make massive returns monthly and annually without increasing your budget?