The Software as a Service (SaaS) industry has been on an upward trajectory, with a market size of $186.6 billion as of 2022. Projections indicate that by 2030, the industry's value is set to skyrocket to $700 billion.
If you're a SaaS business owner, this is the perfect opportunity for you to tap into this market growth. One way to do so is by building and nurturing a thriving online community platform.
Why should you care about this?
Here's the scoop: a recent Forrester report spilled the beans that a whopping 60% of businesses already own a branded online community while more than 30% of organizations attribute a chunk of their revenue to the influence of their online community platform.
It’s clear that SaaS businesses that invest in building and nurturing online communities are not just adapting to the evolving landscape—they are positioning themselves for sustained success in the years to come.
Read on as we dissect the advantages that a robust online community can bring to your SaaS business, from fostering customer loyalty to influencing purchasing decisions. And explore how you can find the ideal online community platform for your SaaS venture.
Tailor-build your own branded community!
What are the advantages for your SaaS business from building a thriving online community?
Market Research and Feedback Loop
Online communities offer a direct line of communication with your user base.
A Microsoft's report says 77% of customers look favorably upon brands that actively seek and embrace customer feedback. It's like having a direct line to your users' thoughts. And get this, 90% of communities believe their feedback actually shapes the decisions companies make.
That's the power of community-driven improvement, turning users into valued contributors and allowing them to share their experiences, offer suggestions for improvement, or highlight any issues they encounter.
The feedback driven by an online community platform is often more detailed and nuanced than what you might receive through traditional channels like surveys. For instance, Salesforce, a leading CRM SaaS provider, has a "Success Community" where users can ask questions, share feedback, and participate in discussions.
By actively participating in discussions and monitoring conversations, SaaS businesses can gain valuable insights into user needs, preferences, and pain points. This information is instrumental in making data-driven decisions for product development and enhancements. It allows you to iterate on your SaaS solution based on real user experiences, ultimately leading to a product that better aligns with customer expectations.
Customer Support and Retention
A thriving online community can serve as an extension of your customer support infrastructure. Users can seek advice, share experiences, and troubleshoot issues within the community. According to a report, 75% of respondents of branded communities agreed or strongly agreed that the online community platform has helped improve customer experience.
This not only enhances the overall customer experience but also contributes to higher retention rates. The sense of community fosters loyalty, making users more likely to stick with your business over the long term.
Additionally, 57% of those with a branded community said that the community has led to an increase in brand SEO. This underscores the broader impact an online community platform can have on brand visibility and recognition, contributing not only to customer support but also to the overall growth and success of your SaaS business.
User-Generated Content and Innovation
Online communities act as fertile grounds for the generation of user-generated content (UGC). This content can range from reviews and testimonials to innovative ideas and use cases.
Harnessing the power of UGC not only adds authenticity to your brand but also fuels innovation.
One approach is to designate certain discussions, tutorials, or resources as premium content, accessible only to paying members.
This exclusive access creates an additional incentive for users to upgrade to premium memberships, generating revenue while providing added value.
Subscription models within the community, offering enhanced access or privileges for a fee, represent another avenue for monetization. Members willing to pay for advanced discussions, expert Q&A sessions, or special interest groups contribute to the sustainable revenue model of the community.
Users within the online community platform can share insights, best practices, and creative solutions, creating a collaborative environment that benefits both the SaaS provider and its user base.
Immediate Engagement and Integration:
The desire for community engagement is strong, with 4 out of 5 users ready to immediately become a part of brand communities. This instant integration speaks volumes about the potential of online communities to forge quick and meaningful connections with users. Not only this, research by HubSpot found that an online community can help brands improve engagement by up to 21%.
By providing an online community platform for immediate engagement, SaaS businesses can create a sense of belonging that goes beyond the transactional nature of their products or services.
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Driving Revenue Growth
Over 30% of businesses reported that their online community significantly influences their organization's revenue. As the SaaS industry continues to expand, establishing a robust online community platform can become a crucial driver for revenue growth.
Revenue from enterprise online communities worldwide from 2012 to 2019
The engaged and loyal user base within the community is more likely to convert into paying customers. The sense of community creates a deeper connection to your brand, making users more willing to invest in premium features or subscription plans.
Additionally, the online community platform provides a natural space for cross-selling and up-selling opportunities. As users interact and discuss their needs, they may discover additional features or products offered by your SaaS business that address their challenges, leading to increased sales.
Brand Advocacy
Brand experience plays a pivotal role in influencing users' choices, and this is where online communities shine. A staggering 82% of community site visitors expressed a willingness to engage with brands that actively participate in online communities. This statistic underscores the importance of fostering a sense of community around your SaaS brand, making users not just customers but enthusiastic participants in a shared ecosystem.
Not just this, an online community platform can even turn your satisfied customers into enthusiastic fans of your brand. When users have positive experiences with your SaaS product, they are more likely to share their experiences and recommend your product to others within the online community platform. These advocates become promoters who vouch for the reliability, effectiveness, and value of your solution.
- Word-of-Mouth Marketing: Positive recommendations within the community can lead to organic growth as members share their experiences outside the community.
- Trust Building: Prospective users often trust recommendations from their peers more than traditional marketing. Advocacy within the online community platform helps build trust in your brand.
- Increased Conversions: Potential customers are more likely to try out a product recommended by someone they trust, contributing to increased conversion rates.
Maximized Customer Lifetime Value (CLV):
Customer Lifetime Value (CLV) is a critical metric for SaaS businesses, representing the total revenue a customer is expected to generate over their entire relationship with the company.
By fostering an engaged online community, you create an environment where users are more likely to explore additional features, services, or subscription tiers.
Engaged community members often demonstrate a higher level of loyalty and are more open to upsells or cross-sells. This increased usage and adoption of premium features contribute to a higher CLV, as users find ongoing value in the extended offerings of your SaaS product.
Customer Loyalty:
An online community provides a platform for customers to actively engage with your SaaS brand and with each other. It's a space where users can discuss their experiences, ask questions, and share insights. This interaction goes beyond the transactional nature of a customer-business relationship. Users feel a sense of belonging to a community that shares common interests or uses the same product.
This engagement fosters loyalty because customers are not just buying a product; they are part of a larger community. They become emotionally invested in your brand and are more likely to remain customers over the long term. As they connect with other users who face similar challenges or have similar goals, the online community platform becomes a valuable resource that enhances the overall user experience.
Consider the community engagement in the Adobe Creative Cloud community forums. Users actively participate in discussions about software features, share creative projects, and troubleshoot issues. This engagement not only enhances user satisfaction but also creates a network effect, where users find value in being part of a community that shares a common interest in creative design.
Capitalize on New Acquisition Channels
An active online community can serve as a powerful acquisition channel for new customers. Engaged community members are more likely to share their positive experiences with your SaaS product, effectively acting as advocates and influencers within their networks.
According to a Nielsen survey, 92% of consumers trust recommendations from friends and family over other forms of advertising.
By encouraging community members to share their success stories, testimonials, and recommendations, your SaaS business can tap into a trusted and organic referral network. This word-of-mouth marketing through the online community platform can attract new users, providing a cost-effective and authentic acquisition channel.
How Graphy Community Platform can help your SaaS Business build a powerful Online Community?
Graphy, as an all-in-one online community platform, offers a comprehensive set of features that can help you build a powerful online community for your SaaS brand. Here’s how:
1. Diverse Community Building Features:
Forums: Graphy Community Platform offers dynamic forum capabilities where users can seamlessly engage in discussions, share insights, and seek solutions. This feature promotes organic conversations, creating a vibrant hub for knowledge exchange.
Live Interaction: Bring your community to life with real-time interactions. Graphy Community Platform facilitates live discussions, Q&A sessions, and events, enhancing the sense of immediacy and connectivity within your user base.
Gamification: Elevate user engagement through gamification. Graphy Community Platform introduces playful elements like badges, rewards, and challenges, turning community participation into an enjoyable and rewarding experience.
Multiple Communication Channels: Recognizing the diverse preferences of your audience, Graphy supports multiple communication channels. From text-based discussions to video interactions, users can choose the mode that suits them best.
Fully Customizable: Tailor your community's look and feed with our robust customization options. Ensure your brand identity is seamlessly integrated into the community experience, creating a cohesive and immersive environment.
Shop and Coins: Graphy Community Platform go beyond conventional online community platforms by introducing a virtual marketplace. Users can earn and spend virtual coins on exclusive products or features within the community, fostering a unique and interactive economy.
2. Graphy Community Platform vs. the Competition: Affordable Excellence
While numerous community platforms exist, Graphy Community Platform stands out as an affordable yet feature-rich solution for SaaS brands:
Affordable Pricing: Graphy Community Platform offers a competitive pricing model, making it accessible to businesses of all sizes. Enjoy the benefits of a comprehensive community platform without breaking the bank, allowing you to allocate resources strategically.
Comprehensive Features: Graphy combines a plethora of community-building features under one roof. Unlike other platforms that may require additional integrations or subscriptions, Graphy provides an all-inclusive package for your community needs.
User-Friendly Interface: Navigating Graphy Community Platform is intuitive, ensuring that both administrators and users can seamlessly leverage its features. The user-friendly interface promotes active participation and reduces the learning curve associated with adopting a new platform.
Scalability: Whether you're a startup or an established enterprise, Graphy Community Platform scales with your business. As your community grows, Graphy provides the infrastructure and features like app-in-app integration to accommodate increasing user engagement and evolving needs.
Graphy Community Platform empowers your brand to create an immersive and engaging space where users connect, collaborate, and contribute to your SaaS success story.
Book a demo to build your own branded community!
