Since its emergence at the end of the 20th century, the software-as-a-service (SaaS) industry has grown exponentially, becoming one of the three primary tiers of cloud computing. Today, there are approximately 30,000 SaaS companies in the world, with an estimated worth of $208 billion by 2023. In such a large and competitive market, cutting through the noise to earn your place in the spotlight can be a difficult task.
Here are four ways PR can help drive your SaaS business to the top of whatever summit you want to climb.
- To attract investment
Using PR to attract investment from funders is an important tactic at whatever stage your SaaS business is at. A tailored PR program can help to establish your credibility if you’re at the very early stages of your funding journey. Equally, for businesses further in the lifecycle, PR can help to retain existing investors, attract new ones and ultimately drive more leads for the business.
As SaaS becomes increasingly commoditised and competitive, standing out and saying something new can be a challenge. This is where creating news – either through utilising proprietary data or commissioning research, is useful. Or through leaning on your business’s founder to tell their story and drive thought leadership opportunities, including at events or in the media.
- Ahead of a merger or acquisition
Despite the global economy still feeling the aftershocks of the pandemic, deal volumes and valuations in the SaaS market remain strong, largely due to the increased focus on digital transformation. For example, the second quarter of 2022 saw 580 mergers and acquisitions, the second-highest transaction count on record. And with the current market conditions within the tech space further opening up the M&A market, PR can help to support both internal and external comms as and when strategic and private equity buyers decide to strike.
The moment a merger or acquisition is on the cards, you should inform your PR agency as this will help to inform the strategy. Tactics will usually involve a focus on the business itself – leveraging growth stories, new hires or international expansion. It can also be a good opportunity to position founders, or other key spokespeople, as entrepreneurial voices with experience in M&As, as a way to sow the seed with potential buyers that a sale is on the cards.
- To retain customers
Your SaaS business might have a star-studded sales team who can ensure that an abundance of leads are captured and moved through the sales process, but what about retention of those customers? According to Woopra, the average annual churn rate for a SaaS company ranges from 32-50%. Investing in a solid PR strategy can help to reduce that. This can include reinforcing your position in the market with award entries, organising a customer event, or developing case studies, your customers want to see success stories and feel inspired to remain with you. In fact, an article published by Harvard Business School states that a 5% increase in customer retention can cause profits to soar between 25-90%.
- To humanise your business
Today, customers expect meaningful connections with the companies and brands they associate with. As a business, embracing a human-centric approach can be worth its weight in gold and help you stand out amongst the crowd. PR can help bring a human element to your connection with your customers. Through expansive social media campaigns that go beyond recycling product press releases, to curated thought-leadership content, this helps put a face to the key players in your business.
PR can help bridge the gap between faceless tech company and a brand with values that customers can feel aligned to. This can ultimately enhance your reputation and build trust.
By utilising the skills and practises of PR, you can rest assured that your SaaS business can stand out from the crowd.