How To Grow SaaS Business In 2025?

The SaaS field has boomed in the past few years. For example, did you know that there are approximately 30,000 SaaS companies in the world? As you can imagine, with so many companies out there, competition is fierce.

However, there are still plenty of opportunities for SaaS companies to grow and thrive, even in such a challenging and rapidly evolving scenario. If you’re leading or running a SaaS business and are looking for ways to expand, beat your rivals, and keep profitable for years to come, then this is the guide for you.

How does SaaS growth differ from traditional business growth?#

To begin with, it’s worth clarifying what we mean when we talk about "SaaS growth" and how it differs from traditional non-SaaS companies.

A non-SaaS company typically measures its growth by looking at both sales and employee numbers. For instance, if a company of ten people turns over $100,000 in Year 1 and wants to double that in Year 2, it may need to hire additional employees to meet that target.

A SaaS business, on the other hand, can scale rapidly and with minimal additional costs. It could very well double – or triple, even – its annual revenues without making a single new hire. This is because the SaaS sales model mostly revolves around new subscriptions and renewals.

So, if a SaaS sales team of three manages to bring in 100 new subscribers in one year, then the turnover will grow, but the need to recruit more people won’t. While this makes SaaS companies more agile when it comes to growth, it also means that customer retention is central to success. 

Strategies to grow your SaaS business#

Now that we have discussed what SaaS growth is, let’s turn to the best practices to follow if you want to grow your SaaS business seamlessly, sustainably, and successfully.

Develop lead-generation tactics#

To grow a SaaS business, you need qualified leads – and, to get qualified leads, you need to know which lead-generation tactics to use. In the world of SaaS, you’ll want to showcase your expertise and leadership to set yourself apart from your competitors and become the go-to solution for your target audience.

Consider, then, tools like webinars, events, case studies, thought leadership papers, and testimonials. All these will enable you to capture precious details from new potential customers – such as their email address and job role – while, at the same time, demonstrating that you’re genuinely one step ahead of the rest.

Focus on customer retention#

Many companies focus on winning new customers, but this is generally a lot more difficult and expensive than actually retaining those customers who have happily bought from you for years. And, as mentioned above, customer retention is key to achieving sustainable SaaS business growth.

Think about what you can do to nurture your existing customers, turn them into loyal fans of your company, and keep them coming back for more. The secret to this? Stellar customer service and support.

To this effect, you could leverage live chat. Having either a friendly chatbot or a human agent who can deal with customers’ queries in real-time is something that customers greatly appreciate.

Another way to retain your customers is through loyalty programs, freemium services, and tiered subscriptions. All of these services can be tailored to the specific needs of your customers and will keep them coming back for more.

Lastly, customers tend to stick with the same brand when they feel a strong affinity with its values, mission, and vision. So, try to build a community of like-minded people who can share opinions, help each other out, and exchange knowledge and resources.

A great place to start is social media – particularly, LinkedIn. Here, you can create a discussion group about something that’s relevant to your SaaS offering, and let interested people come together to interact.

Prioritize marketing#

When you’re so focused on growing your company and boosting your profits, you might lose track of something just as crucial: your digital marketing strategy. The way you promote your offering, in fact, should remain one of your core priorities.

Think about adopting a multi-pronged strategy that incorporates channels and tools such as social media, blog posts, videos, case studies, customer testimonials, and high-quality visuals. If the majority of your users are active on LinkedIn, make that your priority over other channels such as Instagram.

Moreover, aim to create and share great-quality, SEO-optimized content that your target audience will find genuinely interesting, educational, and memorable – and that search engines will reward by placing it higher on their SERPs. 

Another fantastic tool is email marketing – consider harnessing an automated email marketing tool to seamlessly and effortlessly manage your email marketing communications with your subscription base. Personalize these interactions to make your customers feel valued and less like a number.

Grow your team#

When your workload increases, your tech stack becomes more sophisticated, and your product or service offering expands, you’ll inevitably be faced with a pressing need: more skilled people to join your team.

We’re not suggesting building extensive departments of dozens of people, but you’ll definitely need to start hiring a few key roles to support you throughout your growth. Focus on what you’re currently lacking – whether it’s a sales or marketing expert, a product developer, an accountant, and so on – and hire those figures first. 

Cloud-based recruitment software can be extremely helpful in accelerating and simplifying your entire recruitment process. With this tool, you can easily manage each stage of the process, including scheduling interviews at the touch of a button and getting in-depth reports on things like hiring speed and referrals.

Hiring new people, however, shouldn’t come to the detriment of another crucial aspect of your HR processes: growing and developing your current team. Perform regular training sessions and conduct frequent performance management reviews of your existing employees to make sure that their skills are always up-to-date with what your company needs and expects from them.

Outsource Payroll Management for Smooth Team Growth#

As your SaaS company expands, managing payroll becomes increasingly complex—especially if you're hiring remotely or globally. Handling payroll manually can be time-consuming, and mistakes can lead to costly errors. Outsourcing payroll to experts can save you valuable time and reduce the administrative burden on your team.

Expand into new markets#

SaaS growth doesn’t just mean "revenue growth". It can also refer to a real, physical expansion. For example, if your company is performing well in its home country, what about trying to break into the closest available market? 

Start conducting some market and competitor research, identify your potential customer base, and do a bit of networking with investors and interested stakeholders from the region you’re looking at.

Similarly, look at your offering: how appealing is it for the local market you’re targeting? Consider localizing some of the core aspects, such as the language and payment methods, in order for potential customers to become as familiar and proficient with it as they possibly can.

Partner with other SaaS companies#

If you see all other SaaS companies as your arch-enemies, then you’re starting on the wrong foot. What about, instead, trying to look at them as potential partners and supporters on your growth journey?

Joining forces with another SaaS company can help you reach a larger audience, boosting brand awareness – and, ultimately, sales growth – in a notoriously crowded sector.

The key here is to choose a company that’s not at the exact same growth stage as you. For example, if you are only at the startup stage, you could team up with a more mature company that can give you the credibility and visibility that you’re currently probably lacking.

Similarly, try not to work with SaaS companies that offer exactly the same product or solution that you specialize in. Sure, a certain degree of product affinity is necessary, but you won’t want to start doing business with a direct competitor!

How to measure growth#

Your startup journey shouldn’t end once you have put all these best practices in place. Now, in fact, is the time to figure out whether your efforts have paid off, or if there’s anything along the way that didn’t work quite well and needs tweaking. You can achieve this by measuring your growth rate.

To calculate your growth rate, you’ll need two figures: an initial value and a final value. Then, use this formula:

Growth Rate = (Final Value – Initial Value) / Initial Value 

Let’s imagine you wanted to calculate your revenue growth to find out how much you’ve increased your profits in the past 12 months compared to the previous year.

This is how you would do it:

Revenue from April 2021 - March 2022 (Initial Value) = $300,000

Revenue from April 2022 - March 2023 (Final Value) = $425,000

($425,000 - $300,000) / $300,000 = 0.4

Your revenue grew by 40%.

Key takeaways  #

If you’re planning on growing your SaaS company in 2025, then we hope that our guide has given you food for thought. By following our best practices and calculating your growth rate on a regular basis, you’ll be well on your way to achieving the growth and success you want and deserve for your SaaS business!