Technology Companies' Challenges
Determine the challenges that software-as-a-service (SaaS) and technology companies are facing when seeking new users or clients. Determine also the roadblocks that are preventing them from reaching their growth goals. The information will be used to develop a marketing strategy for these companies.
Technology Companies' Challenges
- The saturation of the SaaS sector is making it a challenge for companies to get customers to buy their products.
- With an estimated 34,727 software products under 745 verticals, it will be a challenge for companies to stand out in order for their potential customers to find them.
- Pouring all the company's efforts in acquiring new customers entails high costs.
- One of the biggest challenges in the sector when it comes to acquiring new users revolve around the cost of customer acquisition.
- Companies have to spend on campaigns to acquire new customers but they need to be strategic about this in order to acquire customers faster than the churn rate.
- To achieve further growth, SaaS firms will need to regularly acquire new customers that they can retain for as long as they want.
- Another challenge that SaaS firms are facing when it comes to acquiring new customers is the long period needed to convince the latter to purchase the solution being offered. SaaS offerings are typically expensive when recurring charges are factored into the subscription payment scheme.
- SaaS companies are also finding it challenging to acquire new customers due to the latter's fear of data or privacy breaches.
- Furthermore, potential users might not fully understand how the complex SaaS solutions being offered to them can meet their needs.
- With regard to business growth, the progress of SaaS companies is often hindered by the lack of collaboration between the marketing and the sales division. Based on a report, around 90% of marketing qualified leads (MQLs) were not converted into sales qualified leads (SQLs) as these MQLs were identified as such in the very early phase of a purchaser's journey.
- Another roadblock for a SaaS company to achieve its growth targets involve being too hasty to scale.
- Recruiting the right talent, establishing new partnerships, going into new territories, acquiring more clients, and other expansion endeavors need to be planned well in order to avoid costly mistakes when expanding the business.
- Another growth obstacle is the practice of some SaaS companies to compete in the market based on price.
- This practice may seem profitable but may result in bankruptcy.
Proprietary Research Available
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Proposed next steps:
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Our initial research provided some of the challenges and roadblocks that technology and SaaS companies are facing when finding new customers or when trying to meet their business goals. Given that there are available resources on this, we propose to continue with the research to provide 3-5 additional challenges that technology or SaaS firms are facing when trying to acquire new customers. We will describe the challenges and how these are preventing the companies from acquiring new customers. We will also provide 3-5 additional roadblocks that these firms are facing when striving to reach their target goals. We will describe these roadblocks and how are they hindering the progress of the companies.
We also recommend undertaking additional research to provide 2-3 trends in the technology industry such as the use of marketing automation and CRM platforms. For each trend, we will indicate what the trend is, why it is a trend, and provide examples of companies that are manifesting this trend. We will also indicate whether these companies are realizing a return and value when riding these trends.
We also propose proceeding with the research to provide 4-6 best practices from SaaS or technology companies on how they overcome challenges or roadblocks when trying to find new customers or when striving to reach their business goals. For each best practice, we will explain what the practice is, why is it a best practice, and any available success metrics.