Build a sustainable SaaS business with continuous growth


SaaS companies have completely revolutionized the technology industry across the globe. It has thrived even during the pandemic and it shows that the SaaS platform will play a vital role in growing businesses across the globe. Enterprises are deploying SaaS solutions over on-premises solutions due to their cost effectiveness and agility and SaaS enterprises have outperformed traditional software vendors across the globe.

The SaaS business starts with a great product solving meaningful real-world problems and its growing adoption has sparked investor interest. According to a report by Motilal Oswal, India’s Software as a Service (SaaS) ecosystem is set to grow rapidly with a $50-70 billion revenue opportunity by 2030, with a 4-5% market share. global SaaS industry. The growing adoption of SaaS has created a need for businesses to accelerate growth momentum while ensuring a strong unit economy.

SaaS companies often achieve early success through aggressive marketing efforts, but end up losing a lot of capital in the long run. Having a great product and a strong marketing and sales strategy doesn’t eliminate other challenges for SaaS businesses. The hallmark of a great company is a very stable customer base and a sales engine that delivers reliable, predictable and growing cash flow over time. SaaS companies must understand the nuances of an increasingly competitive ecosystem and rethink their strategies to ensure long-term sustainable growth.

Here are some of the key factors that help SaaS companies achieve all of this and build a sustainable business:

Renewal is just as important as acquiring new customers

SaaS companies work on a holdback model, as they continue to seek more business, there is often immense upsell and cross-sell potential within the existing customer base. It is important for companies to realize that sales efforts should not only focus on acquiring new customers, but also ensuring that existing customers continue to use the solution extensively and ensure a great experience so that ‘they renew and use more services to further increase the profitability of these customers. Businesses can easily measure the impact of renewal with monthly recurring revenue (MRR) and annualized rate of return. This helps create a much more predictable stream of income, making financial planning, investing, and sustainable growth more feasible. It’s important to strike the right balance between customer lifetime value (LTV) and customer acquisition cost (CAC). An ideal LTV:CAC ratio is 8:1 as it will ensure that the payback period of any acquisition is less than 12 months. This will allow companies to build a business on solid fundamentals

Easy integration

Seamless integration is the key to a long-term customer relationship. SaaS companies largely work on the freemium model, where initially services are offered for free during the trial period. Getting potential customers to try a product is only the first step, it’s a SaaS company’s job to make them understand the product and make it easy to use. Every day that passes by a potential customer who does not use the platform increases the risk of churn, it is also a task for customers to download data, integrate software and train their staff on the use of the solution. There is little time to convert potential customers into paying customers, so it is important to add value to the customer’s business and its impact must be visible.

Product innovation

There is a reason why 95% of new products fail in the market while some companies succeed with their product ideas. The answer is product innovation. It means introducing something new. It can also mean a gradual improvement of something that already exists. To be specific, developing or improving products that solve problems for consumers, businesses, or society as a whole is product innovation. Such innovation can also be tangible and offer radically new technologies. But why is it important for a SaaS company? The simple answer is that a good product portfolio drives growth, brings profits and sustains the business.

A robust network of integrations

A business is like well-oiled machinery where every different business unit needs to interact and share information for smooth operations. It is imperative that SaaS companies connect their applications to customers’ existing applications, either on-premises or in the cloud, or both. It must also connect to internal applications and tools that power the SaaS product itself. Therefore, it is important to build an integration network that easily integrates into users’ workflows and becomes increasingly necessary for their processes. At Unicommerce, we have a network of over 160 integrations, making it extremely easy for any seller to sell across country and international markets.

Build internal automation

A SaaS company focuses on automating processes for other companies, but it’s also important to streamline and automate its internal processes. As competition intensifies in the SaaS ecosystem, it’s important for businesses to automate processes to drive growth and get maximum return on investment. Businesses can deploy marketing automation to generate qualified leads and reach target audiences in an effective and engaging way. As the business matures, customer service, sales, and product teams will need accurate data to get a more holistic view of your customers. Therefore, the customer relationship management solution plays a central role. It makes it possible to aggregate and analyze data from the various departments of the organization. Unified insights can help personalize interactions, proactively reduce churn, and enable upsell opportunities.

Invest smartly in digital marketing

These days, SaaS companies must constantly market their products and services to potential customers. Businesses need to smartly leverage digital marketing and improvise their marketing strategies and tactics to stay relevant in the modern business market. The consumer is already online and looking for solutions, as a SaaS business it is important to leverage digital marketing to build brand image and build public relations to drive sales. The right content and targeting the right customer can help you optimize your marketing budget to generate maximum ROI with minimum investment. Various marketing solutions are available to make data-driven decisions based on marketing analytics, trends, and customer interests and preferences.


A sustainable SaaS business means better profitability and a better reputation in the market. It also leads to higher employee satisfaction and enhances investor appeal. It’s a huge challenge to build a sustainable SaaS business by implementing everything in the rulebook. But in the long run, the slightest effort counts and the long-term rewards are worth it.



The opinions expressed above are those of the author.



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