In today’s highly competitive SaaS market, it is essential for companies to expand their business into new markets in order to stay ahead of the competition. With the advent of new technologies and the ever-changing landscape of the business world, companies must be able to adapt quickly to new market trends to maintain a successful business.
Implementing market expansion strategies can be a great way to reach new customers, but it’s important to do it right if you want to see meaningful results.
When Should SaaS Companies Start Developing Market Expansion Strategies?
There are a few factors to consider when deciding when to start working on a market expansion strategy. First, you must ensure that your product is ready for a new market. It should be stable and have all the features and functionality that users in the new market will expect.
Second, it’s important to have an in-depth understanding of the new market you’re considering entering. What are the unique needs and challenges of users in that market? What kind of competition will you be up against? Answering these questions will help you develop a more targeted expansion strategy.
Finally, you need to have the resources in place to support a successful expansion. This includes things like financial resources, staffing, and marketing experience. Without the necessary resources, it’s likely that your expansion attempt will produce minimal results.
Once you get the green light to develop a market expansion strategy for your SaaS company, implement these five best practices to maximize results.
How to Develop a Market Expansion Strategy.
1. Define Your New Target Market.
Before you launch a new product, it’s essential to take some time to validate your target market. Who are you trying to reach with your market expansion? What needs do they have that you can fill? What motivates them? Once you have a clear picture of your target market, you can start to develop a marketing strategy that will resonate with these individuals.
If you don’t take the time to define your target market, you run the risk of alienating potential customers and failing to connect with the people who are most likely to buy your product. By taking the time to understand your target market, you can set yourself up for success from the very beginning.
Once you’ve defined your target market, you can start developing your market expansion strategy.
2. Research Your Competition.
Completing an in-depth competitor analysis is vital when determining the feasibility of any market expansion strategy. Many SaaS companies make the mistake of assuming that their product or service will be successful in a new market simply because it has been successful in their existing market. However, this is not always the case. It is important to consider the new market’s specific needs and wants and the existing competition.
When thoroughly researching your competitors you want to ask questions such as:
– What are they doing well?
– What could you do better?
– How can you differentiate yourself?
Answering these questions will help develop market expansion strategies that give your SaaS company a greater competitive advantage.
3. Develop An Informed Pricing Strategy.
Pricing is always an important consideration, but it’s especially important regarding market expansion strategies. This will help ensure that your products are priced correctly for the new market and that you can compete against other businesses offering similar products. There are several factors to consider when creating a pricing strategy, including the cost of goods, taxes, and any change in operation costs you may incur.
In addition, you will need to research the prices of similar products in the new market and assess the purchasing power of consumers in that market. By considering all of these factors, you can develop a pricing strategy that will help you successfully enter the new market.
4. Expand Into New Channels & Engage New Audiences.
Successful market expansion strategies require reaching new audiences in new ways. Things like social media, advertising, marketing, and outbound sales are effective lead generation initiatives that can help you reach a new audience and obtain qualified meetings.
It’s important to note, though, that marketing takes time. You’ll need to develop search engine optimization (SEO) strategy, produce engaging short- and long-form content, and then give that content time to be indexed by search engines. It takes many companies up to three months, if not more, just to get content out the door.
If you want to see results faster, then invest in outbound sales.
Following the Purple Sales methodology, for example, we help our clients launch outbound email sequences by the second month of our engagement. This quick-start empowers companies to gather valuable data on their target territory that not only informs their effective market expansion strategy but also generates qualified meetings.
5. Build Partnerships That Can Accelerate Sales Growth.
In today’s business world, building strong partnerships is key to accelerating the growth of your brand. By building lucrative partnerships with other providers, you have the power to tap into greater resources to further extend your reach.
For example, partnering with a team of market expansion experts would be a logical choice if you’re expanding overseas. Partnership opportunities like this can help you reach new customers and close more sales with less risk.
In today’s competitive marketplace, it’s more important than ever to have a sales team that can effectively promote your brand and close deals. However, building an in-house sales team can be a big investment, and it can take time to train new employees and get them up to speed.
Outsourcing sales to a reputable agency can help you accelerate the growth of your brand by giving you access to highly trained professionals who are ready to hit the ground running. In addition, sales outsourcing can save you money in the long run by freeing up internal resources that can be better used elsewhere.
Here is what SaaS companies look forward to when leveraging a market expansion program to accelerate growth in new territories:
– Low risk: Services depend on providing you with guaranteed-backed results.
– Keep working as normal: No disruption to normal operations and increased access to reliable remote B2B lead generation and sales services.
– Remote work process: No additional spending is needed for hiring
– Continuous improvement: Ethical data collection and usage
– Sales with compassion: Increased closing rates without the use of predatory sales practices
So if you’re looking to take your SaaS company to the next level by expanding into new markets, consider taking advantage of this new hybrid sales model.
Developing Winning Market Expansion Strategies.
Even the best SaaS products and services fall flat if they’re not marketed correctly. Without a solid plan, you could waste time and money on initiatives that don’t reach your target market.
Developing successful market expansion strategies requires careful planning and execution. But by following these best practices, you can give your SaaS company the best chance for success in reaching new markets and customers. Contact us to discuss how we can help with your market expansion and business traction today!
