The SaaS product manager's guide to moving upmarket

If you’re reading this, it’s probably because you feel pretty confident about moving to the big leagues. But you may also be asking – how does one move upmarket in SaaS?

This blog post explains how to do precisely that. We’ll share insights into how successful SaaS businesses transition from SMBs to enterprise clients.

We’ll cover:

• What moving upmarket means, plus its benefits and challenges
• Actionable advice to help your SaaS business when moving upmarket
• Tips for measuring success and iteration during the process

Let’s kick things off with a quick explanation.

What does it mean to move upmarket?

Moving upmarket is a strategic shift. It involves going from catering to smaller businesses to engaging enterprise-level companies.

But what exactly does this entail?

And why would a SaaS company embark on such a journey?

To truly grasp the concept of moving upmarket, we need to understand the key players involved:

• SMB (small and midsize businesses): These companies typically have less than 1,000 employees. They're often characterized by limited budgets, simpler software needs, and faster decision-making processes.
• Enterprise companies: These usually boast over 1,000 employees. They have deeper pockets, complex software requirements, and intricate organizational structures. They often require customized solutions and extensive support.

What’s the allure of moving upmarket?

Moving upmarket is about more than just chasing bigger clients. It's about unlocking a realm of possibilities such as:

• More revenue potential: Enterprise companies typically have larger budgets allocated for software solutions. This translates into higher contract values and a more predictable revenue stream.
• Better brand reputation: Landing enterprise clients can elevate your brand's prestige and credibility. Thus, it makes it easier to attract other high-profile customers.
• Expanded customer base: Enterprise clients can increase your customer base and market reach.
• Long-term partnerships: Enterprises often seek long-term solutions. This means they are less likely to switch providers frequently. Their focus tends to be on fostering stable, enduring relationships.

What are the challenges of moving upmarket?

While the rewards of moving upmarket are enticing, the path is not without its hurdles. These challenges include:

• Longer sales cycles: Enterprise sales involve many stakeholders, which means more complex decision-making processes that stretch sales cycles over months or even years.
• Higher expectations: Enterprise clients demand top-notch features. They expect robust security, integrations with existing systems, and top-notch customer support.
• Increased competition: The enterprise market is fiercely competitive. You’ll face off against established players and other aspiring startups vying for the same slice of the pie.

Actionable advice for moving upmarket

To successfully navigate the journey of moving upmarket, here are four key areas where you can take action:

Conduct thorough market research

Begin by identifying your target enterprise customers. What industries are they in? What size are they? What common challenges do they face?

This segmentation enables you to tailor your product and messaging to their needs.

Next, run an in-depth competitive analysis. Who are the major players in the enterprise market, and what are their strengths and weaknesses? Understanding the competition helps position your product and highlight what sets you apart.

Finally, conduct a comprehensive customer needs assessment. Go beyond surface-level assumptions. Truly understand the pain points and challenges faced by your target customers. What are they struggling with? Where are their current solutions falling short?

By aligning your product with their specific needs, you show that you are not just another vendor but a partner invested in their success.

Develop enterprise-grade product features

Enterprise clients have unique requirements that demand a more sophisticated approach.

Elevate your product's security and compliance measures. Implement robust encryption and access controls and adhere to industry-specific regulations. You want to assure your customers that their data is in safe hands.

Go beyond basic analytics and reporting. Enterprise users crave in-depth insights that drive strategic decision-making. Provide them with dashboards, reports, and predictive analytics capabilities. The goal is to help them unlock the full potential of their data.

Build for the future by ensuring scalability. Your product should be able to handle the vast amounts of data and complex workflows of enterprise-level operations. It should also be flexible enough to adapt to their evolving needs as they grow.

Optimize product reliability and UX

Reliability is non-negotiable for enterprise clients. Downtime can result in significant financial losses and damage to their reputation. Focus on high availability, conduct rigorous testing, and implement robust error-handling mechanisms. Ensure your product is always up and running, delivering a frictionless and dependable experience.

User experience can make or break your product's success. Design intuitive interfaces that are easy to navigate and understand. Provide documentation and training resources so users get the most out of your product.

Invest in top-notch customer support. Enterprise clients expect prompt responses and expert assistance when they encounter issues. A dedicated support team with deep product knowledge can go a long way toward building trust and customer satisfaction.

Adapt your sales and marketing strategies

Selling to enterprise clients is different from selling to SMBs, so assemble a dedicated enterprise sales team. Ideally, members should have experience in consultative selling and building relationships with decision-makers. They should be able to articulate your product's value proposition clearly and persuasively.

Consider creating tiered pricing models that cater to different enterprise budgets and needs. Offer flexibility and customization options to accommodate their unique requirements.

Revisit your marketing strategy and tailor it to resonate with the enterprise audience. Focus on their specific pain points, use cases, and industry trends. Develop leadership content and use industry partnerships to position your product as a leader.

Implement strong onboarding and support systems

The onboarding process is your chance to make a stellar first impression. Start by providing dedicated implementation support. You’ll want to guide your enterprise clients through the setup and configuration process. Offer training programs to ensure their teams can use your product effectively.

Prioritize customer success by actively engaging with your clients. Regularly check in to gather feedback and address any concerns. Building strong bonds with your enterprise customers will foster loyalty and long-term success.

Offer round-the-clock technical support. You want to ensure your clients can always rely on your product. Consider providing a dedicated account manager who can act as an advisor and advocate for their needs.

Tips for measuring success and iteration when moving upmarket

Moving upmarket is a journey of continuous improvement and adaptation. Here are two key strategies to help you gauge your progress and refine your approach:

Track key performance indicators (KPIs)

Keep a close eye on the metrics that reflect your success in the enterprise market. Think customer satisfaction scores, retention, and growth rates within your enterprise customer base. These numbers tell a storyabout how your product clicks with your target audience.

Embrace feedback loops by actively seeking input from your enterprise customers. Listen to their challenges, suggestions, and aspirations through surveys, interviews, and testing sessions. Use this feedback to inform your product roadmap and iterate on your offerings.

Continuous improvement

The enterprise landscape is constantly evolving, and so should your product. Regularly update and enhance your features based on feedback and the needs of your enterprise customers. This shows your commitment to their success and keeps your product relevant.

Don't rest on your laurels as you gain traction in the enterprise market. Expand your customer base by actively seeking out new enterprise opportunities. Invest in ongoing product development, marketing, and sales efforts to fuel your growth trajectory.

Next steps

A successful upmarket move hinges on more than product features and marketing prowess. It's about delivering an outstanding, end-to-end customer experience, including impeccable billing.

Imagine this: You've landed a lucrative enterprise deal, only to be met with billing errors, confusion, or delays. Such hiccups can tarnish your brand reputation, erode customer trust, and jeopardize renewals.

In the high-stakes enterprise world, flawless billing is not a luxury — it's a necessity.

Enter Orb.

Orb is a done-for-you billing platform that reduces the complexities of enterprise-grade billing. Moving upmarket can feel daunting, but with robust billing, it won’t feel like such an uphill battle.

This is how Orb helps:

• Effortless integration: Orb integrates with popular tools like S3 and Segment, making it easy to get up and running quickly. Your usage data can be easily ingested from your app or data warehouse.
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• Precise usage tracking: Whether you're tracking API calls, storage usage, or any other metric, Orb simplifies the process. You have the flexibility to define the usage metrics that matter most to your business. The result is more accurate billing calculations.
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• Flexible pricing plans: Orb supports a wide range of pricing models, from granular per-unit charges to tiered pricing based on usage levels. Our Plan Builder lets you create the ideal pricing structure without a single line of code.
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• Automated billing cycles: Orb takes the pain out of billing by automating the entire workflow. From usage tracking and fee calculations to discounts, invoicing, and adjustments, Orb handles it all. Our system saves you time and minimizes the risk of errors.

Schedule a demo with Orb to see how we can help your SaaS business thrive with your enterprise customers.