Growth is a crucial part of every SaaS marketing strategy, but sometimes it can take time for people to figure out how to get the growth they need. Many companies approach this problem by looking at their product on a matrix and considering which option fits best with their business model. The most common form of this analysis involves using Ansoff’s growth matrix, which George Ansoff developed in 1957 as his doctoral thesis at Stanford University. This article will explain Ansoff’s growth matrix and how it can help you plan your SaaS marketing strategy!
Ansoff’s matrix helps marketers consider four options for distributing a new SaaS product.
Ansoff’s growth matrix is a tool used by SaaS marketing agency experts that helps you to consider four options for distributing a new SaaS product. It allows you to identify which option is best for your business and how it fits into the overall strategy for growth. The first option is market penetration, which means having many customers who use your product but do not necessarily purchase additional services from you or recommend it to others. It could be through word-of-mouth advertising or referrals from satisfied customers who want to spread the word about how excellent your service is.
The second option would be product development, where you focus on increasing existing users’ usage levels while refining existing features. As per the growth marketing agency experts, it can be done by improving functionality or adding new functionalities that didn’t previously exist within the basic functionality offered by other companies offering similar products on marketplaces such as Amazon Marketplace or eBay Marketplace. The changes could include adding new features like video streaming capabilities, so users don’t need additional equipment when using their favorite device from any manufacturer! Hence, they work better as part of the overall user experience (UX).
Market penetration
The second step is to increase market penetration or the rate at which your customers use your product. It can be done by focusing on current customers and increasing sales to them, as well as through existing channels (such as email marketing). In addition to increasing customer retention, you should also focus on improving customer satisfaction and increasing revenue per customer contact point (RPC).
Product development
As a marketer, you want to ensure that your company has the resources necessary to develop the right product at the right time for it to succeed. As per SaaS marketing agency experts, product development is creating new products, improving existing ones, and expanding or contracting your product line. Several factors will determine how well you can execute this:
- New Product Development: This includes new-to-the-market ideas and current products that may have been abandoned or are undergoing expansion. The goal here is not just to have something new but also to have something meaningful enough so that people will buy into it and continue using it long-term. If there’s no demand for a particular feature or functionality within an existing product, then there’s no reason why anyone would want their money spent on it!
- Product Improvement: This category involves improving existing products by adding new features or fixing bugs while maintaining core functionality (elevating them above competitors who do not offer these features). These changes should always be made with care because they can negatively affect sales if done incorrectly. However, if done correctly, these updates could improve overall profitability since consumers might prefer one brand over another due to simplicity.
Market Development
Market development is a strategy used by growth marketing agency experts for various companies to increase market share by targeting new market segments. It expands your business’s product line, geographic boundaries, or time horizon. You can use Ansoff’s growth matrix to analyze the impact of market development on your SaaS marketing strategy as per the SaaS marketing agency experts.
Diversification
Diversification is a risky strategy, as per the SaaS marketing agency experts. You need to have a lot of money and time to diversify. Diversifying is only sometimes the best option for startups since it involves taking on more risks than you can afford to diversify your portfolio and make more money. Diversification might even hurt your business by diluting the power of your core products or services (which depend on high margins).
There are some instances where diversification makes sense. If you’re running a SaaS company with multiple products that require different user bases or geographies, or if you want to expand into new markets but don’t have enough resources right now
A growth matrix can be used to plan and analyze your SaaS marketing strategy.
A growth matrix is a way of thinking about how to grow your business. It can be used to plan and analyze your SaaS marketing strategy, but it’s not just for startups. For you to succeed in the growth matrix, there are three things you need:
- Your product (you should have a great one)
- Key customers (you need them for your product to work)
- Competitors (they will make sure that no one else gets ahead of you)
Conclusion
In summary, Ansoff’s growth matrix has been used by most growth marketing agencies to plan and analyze various companies’ SaaS marketing strategies. The matrix helps you choose the right combination of market penetration and product development. However, it is necessary to note that this is not an exact science, so there may be times when you need to make changes in your decision based on feedback from customers or other factors (such as competition).
Effective product marketing by SaaS marketing agencies is essential for business owners who want to grow their operations. Growth Marketing Agencies like Voxturr help businesses to achieve rapid growth in any competitive market. Even though there are numerous obstacles in the future, scaling is still doable with these top growth hacking techniques provided by any growth marketing agency like Voxturr.
