December 1, 2021
How can data help SaaS companies? Find out how to boost your sales with market analysis insights!
SaaS organisations are among the top firms that are most dependent on data. They often have a team that spends hours analysing internal data. But how can external data help SaaS companies? How can they benefit from market research?
Why is data crucial to SaaS companies?
The answer is pretty simple: the more potential clients you reach, the more subscriptions you get. This leads to higher revenue, and the role of data analytics is to provide answers, i.e., about how to improve any process that is linked to sales.
SaaS organisations know this well – even niche markets can be very competitive. That is why organisations are always on the lookout for future trends. The ones that are one step ahead of their competitors will benefit more. And this is yet another crucial role that data plays for SaaS companies – it helps them identify potentially lucrative directions of development in order to meet incoming trends.
How can conducting a market analysis boost a SaaS company's sales?
External data that is gathered from the market plays an essential role in a company's growth process. After you conduct your research and draw relevant conclusions, it will be easier to:
- Get more subscriptions by finding new clients in newly discovered niche markets
- Discover best practices used by other companies
- Develop your product better by having a better understanding of your clients
Improving or implementing found solutions for any of these three areas will indeed have a positive impact on your company and sales. By being more competitive, the whole organisation will benefit. And conducting a market analysis makes all of this possible!
What specific questions can be answered with a market analysis (from a SaaS perspective)
Whenever a SaaS company runs a market analysis, the main focus is primarily on internal data; however, external data insights can be valuable too.
What types of questions can you answer by relying only on external data?
- Customers: What kinds of clients dominate your market: what are their needs and expectations? What kind of problems can you solve for them with your software?
- Competitors: What are your competition’s strengths and weaknesses? How does your product compare to their solutions? How well are they doing in the market, and what does this mean for your business?
- Sales funnel: How does your funnel differ from that of your competitors? What do your clients have to say (online) about the whole process? What can you improve, and which improvements should come first?
- Marketing: Do you use the same marketing channels as your competitors? Which one is the most popular in your niche, and which one can you abandon?
- Trends and threats: What are potential trends or threats to your business? How can you manage or prepare for them?
Conducting a market analysis is the key to answering all of these questions – and many more! If you feel that your SaaS company is lacking some data research, contact us to get the help you need to boost your organisation!