Are you the leader of a growing SaaS company? If so, when was the last time you got a good night’s sleep?
If you can’t really remember, then you’re not alone. Start-ups and high-growth SMBs come with a laundry list of to-dos that are handled by a few core folks working with you. Keeping on top of it all can be tough; the SaaS market is dynamic, and your customers are demanding and digitally savvy.
To uncover the biggest worries in the cloud landscape, we teamed up with SaaStr to survey SaaS company executives as they work to get from $0 to $100M ARR. Out of 514 respondents, we found that their biggest causes of insomnia fell into one of three categories.
More than a third of respondents (35%) cited sales as their biggest worry.
47% of SaaS company leaders feel they suffer from a lack of brand awareness and marketing support. As a result, it’s tough for sales people to get customers’ attention. 38% of SaaS leaders (especially in smaller companies) say they have difficulty getting a meeting with decision makers ― or even a phone call.
As they grow, the focus around sales shifts to finding the best sales talent. 39% of SaaS leaders say they have trouble getting the sales talent they need to close deals and keep revenue coming in.
18% of respondents believe their biggest pain point is customers—how to get them, how to keep them, and how to sell them more stuff.
The majority of respondents (55%) worry about pricing their offerings appropriately. Since the majority of revenue for SaaS companies comes from cloud subscriptions, leaders worry about keeping up renewal levels. To renew consistently, pricing needs to remain competitive with the rest of the market.
Half of SaaS companies—especially startups—worry about not winning enough customer logos. Logos give a new company credibility and a stable of references to draw upon. As they grow, SaaS companies look to become the standard for the “big logo” companies, not just a point solution in a particular department. This helps engaging brand evangelists, obtaining references and viable case studies and lowering the cost of sales. Departments who are using the SaaS solution (on the sly) are usually not willing to be referenceable customers.
Meanwhile, 47% of survey respondents said they aren’t sure how to grow customer revenue quickly and steadily enough. In order to maintain growth, they need to ensure they are fully maximizing the revenue stream from every customer—so larger SaaS companies tend to put more emphasis on customer loyalty. Their focus changes from winning net-new customers to ensuring customer satisfaction, boosting customer retention, and reducing churn.
18% of SaaS company leaders think that product offerings are their biggest pain point. In many cases, the product offering is the company; it is the basis of a successful business. So it’s no wonder that half of respondents worried about product stickiness and usability.
46% of SaaS leaders want to be sure there they have created a seamless user experience for their customers; they see this as mandatory for customers to adopt (and keep using) their products. With regular adoption comes a decrease in customer churn and an increase in brand evangelism—both of which help boost growth and lower the cost of sales.
More established SaaS companies also worry about innovation and time-to-market, because new offerings are critical to keeping up with the rapid pace of technological innovation and competition. SaaS executives must always be thinking of the next new product. A good idea starts a business, but innovation grows it.
40 years ago, Oracle was a start-up, just like you. Since then, we’ve survived all the pains of a growing business—from seed and development, to growth and establishment, to expansion and finally to maturity. We have adapted to the changing industry landscape, and we have innovated to meet the ever-changing needs of our customers.
We understand where your company came from and where it’s going. That is why we’ve partnered with the SaaStr community—to help you get from $0 to $100M ARR, with less stress.
Oracle Cloud is designed to help you effectively manage your high-growth business. With us by your side, you can scale with confidence—managing sales, customers and products as you grow—with fewer sleepless nights.