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Why Your SaaS Growth is Stalling | Fix It with Proven Tactics

Growing a SaaS business is brutally hard. Customer acquisition costs are rising, churn can kill momentum, and even with a great product, standing out in a crowded market feels impossible. Do you go all-in on product-led growth? Double down on sales? Tweak your pricing?

The truth is, there’s no one-size-fits-all playbook. The fastest-growing SaaS companies combine multiple strategies—leveraging data, optimizing pricing, refining onboarding, and continuously adapting to market shifts.

Here, we’ll break down the most effective growth strategies SaaS founders need to scale sustainably in 2025 and beyond.

Key Takeaways

  1. SaaS Growth Isn’t One-Size-Fits-All – Different growth stages require different strategies. Early-stage startups need scrappy acquisition tactics, mid-stage companies focus on scaling efficiently, and mature SaaS brands optimize retention and expansion.
  2. The Right Growth Strategy Balances Product, Marketing, and Sales – Product-Led (PLG), Sales-Led (SLG), and Marketing-Led (MLG) each serve different business needs, and the most successful SaaS companies combine these approaches strategically.
  3. Data-Driven Decisions Drive Sustainable Growth – Tracking key SaaS metrics like MRR, CAC, churn rate, and LTV ensures that growth efforts are efficient, scalable, and profitable over time.
  4. Execution Matters More Than Ideas – Choosing the right strategy is just the beginning—iterating, experimenting, and optimizing based on real data is what leads to 10x growth.

Key Strategies for a Successful Growth for Your SaaS Business

It doesn’t matter if you’re PLG, SLG, or MLG, the key is to know when to mix and match different strategies. Like HubSpot, which started with MLG, then added PLG (with freemium CRM), and later scaled with SLG for bigger enterprise deals.

A great product isn’t enough—you need the right growth strategy to scale right. Ready to level up? Let’s break down proven SaaS growth strategies to help you scale smarter.

Set a Clear Growth Goal

Start by defining the key objective driving your SaaS growth. Whether it’s expanding market share or establishing industry authority, having a focused goal ensures alignment with business success.

  • For example, it can be “boosting MRR by 30% in the next quarter by optimizing your product engagement strategy.”

A well-defined goal keeps your strategy focused and measurable, paving the way for sustainable growth.

Challenges & Solutions:

🔴 Vague or unrealistic goals → ✅ Use data-driven targets with clear KPIs.

🔴 Lack of alignment across teams → ✅ Ensure all departments work toward the same business objectives.

Optimize Your Customer Acquisition Channels 

A steady stream of new customers is the foundation of SaaS growth. Here’s how to acquire high-intent customers, or leads:

  • Find Your Target Audience: Define clear buyer personas and identify the channels where they are most active.
  • Leverage Paid Advertising: Drive top-of-funnel traffic using PPC, social media ads, and retargeting (e.g., Ahrefs’ Facebook ads).
  • Use Strategic Partnerships: Xero scaled by targeting accountants and bookkeepers instead of small business owners directly.
  • Launch Referral Programs: Encourage word-of-mouth growth by rewarding existing users for bringing in new leads.

A friendly advice—focus on 2–3 channels that work best for your audience, rather than trying to be everywhere at once.

Challenges & Solutions:

🔴 High customer acquisition costs (CAC) → ✅ Improve targeting and optimize conversion funnels.

🔴 Unclear ROI from marketing efforts → ✅ Use attribution models and A/B testing.

Perfect Your Pricing Strategy 

Your pricing can make or break your growth. 

  • Consider offering tiered pricing plans that cater to different customer segments, and don’t forget to include a free trial or freemium option to lower the barrier to entry. 
  • Nearly half (48%) of SaaS companies use a freemium model, offering free limited use or trials to attract users and drive conversions.
  • Make sure your pricing reflects the value you provide and leaves room for upsells.

Challenges & Solutions:

🔴 Customers undervaluing the product → ✅ Position pricing based on perceived value.

🔴 Churn due to poor pricing fit → ✅ Offer flexible plans and usage-based pricing.

Build a Strong Customer Success Program 

Happy customers are your best growth engine and it relates to a strong customer success programme. Retaining happy customers is more cost-effective than acquiring new ones. 

  • Ensure a seamless onboarding process, provide excellent customer support, and actively help customers achieve their goals with your product. 
  • When customers see real value, they stick around longer and become your brand advocates.

Challenges & Solutions:

🔴 Poor user activation → ✅ Create step-by-step onboarding flows with tooltips and guides.

🔴 Low retention rates → ✅ Implement proactive success management and loyalty programs.

Implement Product-Led Growth Tactics 

Let your product do the heavy lifting! That said, your product should drive user adoption.

  • Build viral features that encourage sharing and collaboration. 
  • Add in-app tutorials and tooltips to help users discover value faster. 
  • The easier it is for users to succeed with your product, the more likely they are to upgrade and refer others.

Challenges & Solutions:

🔴 Users dropping off before activation → ✅ Optimize onboarding and highlight key benefits early.

🔴 Slow organic referrals → ✅ Add incentives for referrals and social sharing.

Focus on Customer Retention and Expansion 

Keeping existing customers is way cheaper than finding new ones. 

  • Develop a solid retention strategy through regular check-ins, feature updates, and personalized communications. 
  • Look for opportunities to expand accounts through upsells and cross-sells once customers are successful.

Challenges & Solutions:

🔴 High churn rates → ✅ Monitor churn signals and engage at-risk customers early.

🔴 Limited upsell opportunities → ✅ Use AI-driven insights to identify upgrade-ready customers.

Create a Data-Driven Growth Engine 

Get serious about your metrics

  • Track SaaS metrics like MRR, churn rate, CAC, and LTV. 
  • Use real-time dashboards to make informed decisions about where to invest your resources. 
  • Set up dashboards to monitor these metrics in real-time and act quickly on any concerning trends.

Challenges & Solutions:

🔴 Too much unstructured data → ✅ Focus on actionable KPIs that drive growth.

🔴 Slow decision-making → ✅ Automate reporting and leverage predictive analytics.

Leverage Partnerships and Integrations 

Don’t go it alone! Expand your reach by integrating with complementary SaaS tools and forming strategic partnerships.

  • Partner with complementary businesses and build integrations with popular tools your customers already use. 
  • This opens up new distribution channels and makes your product more valuable to users who can connect it with their existing workflow.

Challenges & Solutions:

🔴 Low adoption of integrations → ✅ Ensure seamless UX and educate users on benefits.

🔴 Lack of distribution partnerships → ✅ Target companies with overlapping customer bases.

Scale Your Operations Efficiently

As you grow, make sure your operations can handle the increased load. 

  • Automate repetitive tasks, document your processes, and build scalable customer support systems. 
  • Keep an eye on your unit economics to ensure you’re growing sustainably.

Challenges & Solutions:

🔴 Operational inefficiencies → ✅ Automate repetitive tasks and streamline workflows.

🔴 Scaling too fast → ✅ Monitor unit economics to ensure sustainable growth.

Develop an International Growth Strategy 

Once you’ve got solid traction in your home market, consider expanding internationally. 

  • This might mean localizing your product, adjusting pricing for different markets, and building regional partnerships.
  • Start with markets that share similar characteristics to where you’ve already succeeded.

Challenges & Solutions:

🔴 Cultural & regulatory barriers → ✅ Adapt messaging and comply with local regulations.

🔴 Uncertain demand in new markets → ✅ Start with regions similar to existing successful markets.

Remember, growth isn’t about implementing every strategy at once. Pick the ones that make the most sense for your current stage and resources, then execute them well before moving on to others. 

Maintain a balance between rapid growth and sustainable operations. 

What Type of SaaS Growth Strategy Should You Choose 

Choosing the right strategy isn’t about picking one—it’s about knowing when to focus on each for maximum impact. Now, let’s go over the approaches you can take for your growth strategy. 

1. Product-Led Growth (PLG): Let Your Product Do the Selling

PLG is all about letting users experience value before they pay. Think free trials, self-serve onboarding, and viral growth loops. PLG companies grow 50% faster than traditional SaaS businesses.

  • Best for: B2B & B2C SaaS startups with fast adoption and a scalable user base.
  • Why it works: Users get immediate value, reducing friction in adoption and conversion—leading to faster, cost-efficient growth.

Key tactics:

🔹Freemium & Free Trials – Offer free access to core features, then encourage upgrades to premium plans.

🔹 Seamless Onboarding – Use AI-driven guides and interactive tutorials to help users quickly understand and adopt your product.

🔹 Virality & Network Effects – Design features that encourage users to invite others, driving organic growth (e.g., Calendly, Zoom).

🔹 Usage-Based Pricing – Charge customers based on their actual usage, making pricing flexible and attractive.

Industry Example: Atlassian hit $1.2B ARR with zero sales reps in its early years!

Need help with your Product-Led Growth engine? Book a meeting with us and you won’t have to look back. 

2. Sales-Led Growth (SLG): Win Big with High-Touch Sales

SLG relies on direct sales, demos, and account-based strategies—ideal for complex, high-ticket SaaS deals.

  • Best for: Enterprise SaaS & B2B solutions with long sales cycles
  • Why it works: High-touch sales help close large, complex deals that self-serve models can’t, ensuring higher revenue per customer.

Key tactics:

🔹Outbound Prospecting – Sales teams proactively reach out to key decision-makers to generate leads.

🔹 Account-Based Marketing (ABM) – Create highly targeted campaigns tailored to high-value enterprise accounts.

🔹 Demo & Consultation-Driven Sales – Offer personalized product demos to showcase value and close complex deals.

🔹 Lead Scoring – Identify and prioritize the most promising leads for conversion.

Heads up: It’s costly and slower compared to PLG—enterprise sales teams can spend up to 40% of revenue on sales & marketing! The average SaaS sales cycle is 84 days, but deals over $100k can take 6+ months.

3. Marketing-Led Growth (MLG): Get Noticed & Attract Customers

MLG fuels growth through SEO, content marketing, ads, and brand authority—great for standing out in crowded markets.

  • Best for: SaaS with strong differentiation & scalable marketing channels
  • Why it works: A strong inbound marketing engine builds brand trust and attracts high-intent leads consistently, reducing reliance on expensive outbound sales.

Key tactics:

🔹 SEO & Content Marketing – Publish high-quality blogs, case studies, and guides to attract organic traffic and build authority.

🔹 Performance Marketing – Run targeted paid ads on search engines and social media to quickly acquire new customers.

🔹 Community & Social Proof – Engage with niche communities (LinkedIn, Reddit, industry forums) to build credibility and trust.

🔹 Webinars & Thought Leadership – Host educational sessions and share expert insights to position your brand as an industry leader.

Pro tip: MLG takes time—consistent effort brings long-term rewards.

Measure The Impact of Your Growth Strategy 

You can’t scale what you don’t measure. Data-driven SaaS companies grow 30% faster than their competitors because they track, analyze, and refine their strategies based on real insights.

But with so many metrics out there, where should you focus? Here’s what to focus on:

  • Revenue Growth Rate – Track the percentage increase in revenue over time using financial reports. A steady rise signals healthy business expansion.
  • Customer Acquisition Cost (CAC) – Divide total marketing and sales expenses by new customers acquired. Lower CAC with high retention means efficient growth.
  • Customer Lifetime Value (CLV) – Calculate average revenue per customer multiplied by their lifespan. A higher CLV than CAC ensures long-term profitability.
  • Churn Rate – Measure the percentage of customers lost over a period. High churn indicates gaps in retention and customer satisfaction.
  • Gross Margin – Subtract the cost of goods sold (COGS) from revenue and divide by revenue. A higher margin reflects strong financial health.
  • Market Share – Compare your revenue against the total industry revenue. Growing market share shows competitive strength and brand dominance.
  • Net Promoter Score (NPS) – Survey customers on their likelihood to recommend your product. A high NPS means strong loyalty and organic growth potential.
  • Website Traffic & Conversion Rates – Use analytics tools to monitor visitor numbers and their conversion into leads or customers. Optimized engagement improves acquisition.
  • Monthly Recurring Revenue (MRR) – Sum up revenue from all active subscriptions per month. Increasing MRR ensures predictable, scalable income.
  • Annual Recurring Revenue (ARR) – Multiply MRR by 12 to project long-term revenue stability. Growth in ARR reflects a strong business trajectory.

10x Your SaaS Growth with the Right Strategy

Scaling isn’t just about applying tactics—it’s about choosing the right strategies at the right time. What worked for others won’t always work for you. The road to 10x growth is different for every SaaS company.

Many SaaS founders hit a crossroads, knowing where they want to go but unsure of the best path. That’s where having an experienced partner can make all the difference.

At Liberate Labs, we’ve helped numerous SaaS companies navigate their growth journeys through our Product Led Growth (PLG) approach and growth marketing—turning your product into a powerful engine for acquisition, conversion, and expansion.

Book A Call Now!

FAQs

Frequently Asked Questions

What is the Rule of 40 in SaaS?

The Rule of 40 states that a SaaS company’s revenue growth rate (%) plus profit margin (%) should be at least 40% to balance growth and profitability.

The 3-3-2-2-2 rule sets aggressive growth expectations for SaaS companies. Starting from $1M+ ARR, you should triple revenue for two years, then double it for the next three. Investors see early-stage SaaS growing just 20% per year as a failure.

The best customer acquisition strategy for SaaS is a mix of product-led growth (PLG), outbound sales, and inbound marketing, tailored to your ideal customer profile (ICP).

To reduce customer acquisition cost, improve your organic acquisition (SEO, referrals), optimize paid channels, and increase free-to-paid conversion rates.

To improve customer retention and reduce churn, deliver better onboarding, proactive customer success, and continuously align your product with user needs.

A good churn rate for SaaS is around 5% annually, meaning you retain 95% of customers each year. However, this varies by company size, market, and industry—larger, established companies aim for lower churn, while smaller ones may see higher rates.

To check if your SaaS pricing is right, analyze if your customers see clear value, LTV is healthy, and conversion rates aren’t suffering—otherwise, test tiered pricing or usage-based models.

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