MRR: Top 20 Strategies to Improve Your Monthly Recurring Revenue

If you want to keep running your business smoothly, you should measure your MRR and make sure it is steady. In this article, we’ll be sharing with you 20 strategies to improve your MRR.

Cash Money
Photographer: NeONBRAND | Source: Unsplash

MRR or Monthly Recurring Revenue refers to the minimum fixed amount of income that your business gains every month.

Additionally, a large part of MRR is relatively consistent and predictable. So it can really help you begin to model estimates of where you’ll be and then can plan your business accordingly on a monthly basis. Thus, increasing your results.

Top 30 Strategies To Improve Your MRR

So you already know what MRR is. Now, we are going to give you some strategies on how you can boost your business growth by improving your monthly recurring revenue.

1. Charge MORE.

This may sound like ridiculous advice but it is worth it! It is because there is no better way to boost your recurring revenue but to charge more for your products or services. And if you are worrying you may lose more customers, no you won’t!

If your product is really valuable, people will still buy them even if you increase your price. Additionally, if customers see your product as a helpful tool that will make them save time and money, they will definitely see its value.
So don’t be afraid, test your prices and measure the different outcomes. If you charge 20% more and lose 10% of your customers, that’s still an 8% gain to your MRR.

2. Upsell

Upselling means promoting add-on features or items to your customers. You can also do it when a customer is just about to buy your product. This may have a bad reputation as a sales approach, but you just have to remember not to be pushy.

Upselling can mean gently suggesting upgrades that benefit your customers and provide value. And most of the time, customers will appreciate it, especially if the add-ons are properly valuable and relevant to your customer.

If you can target your individual users based on their behavior, upselling to existing customers is also a great way to increase your MRR.

3. DITCH the FREE plan!

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Photographer: Isaiah Rustad | Source: Unsplash

Free plans hurt MRR. Period.

Though it is important to let the customers test and try your products, there are no guarantees that these customers will ever convert into paying ones. Unfortunately, it is because when too much is offered for free, customers tend to just stay with the free plan.

So what you have to do? Ditch the free plans or use free trials strategically.

4. ELIMINATE unlimited features.

When you upgrade your product or service, the price should go up too. This means that the price of your product/service should increase as its value increase. If a company lets too many unlimited plans go for cheap, a large section of their customer base will never have to upgrade their subscriptions again.

5. Automate customer acquisition and retention

Customers are the heart of every business. Without customers buying your product, you wouldn’t get any profit. It can be very time consuming and tedious to manually

6. Your USP is Quality!

When you put quality on top of everything, your MRR can never be jeopardized. Your USP will keep on giving value to your brand so you have to focus and always highlight it. When people see the quality of your brand, you do not need to do a lot. It will speak for you and will advertise for you–every single time.

So you need to make sure that the quality and value are clearly conveyed to your clients. If you do, they will remain loyal, they can recommend you, thus increasing your MRR.

7. Give your customers what they need.

Man handing a woman a heart shape
Photographer: Kelly Sikkema | Source: Unsplash

This is directly connected to conveying your USP to your customers well. Your customers buy your product not just because they want it. It is basically because they need it. When they saw your USP, it means that they saw something that will be of great help to them. One important thing to keep in mind whenever you are doing some ads or content is to make sure that customers will have them when they avail of your product because that is what they need.
If not, customers will lose trust and it will tarnish your brand.

8. Overdeliver your customer experience

It is also important to take note of your buyer’s entire journey before making the decision to buy your product or not.

Each customer goes through different stages and it is important that they are properly taken care of. You have to nurture them, make them feel you are always available and you can always help them.

Sometimes, customers stay not just because of the product. They stay because of good service too. And in the SaaS industry, it is important to focus on the product as well as the service because both play an important role to retain your customers.

9. Improve Budgeting & Efficiency

Ten key accounting calculator on yellow desk.
Photographer: StellrWeb | Source: Unsplash

Costs and expenses take away from your revenue. So if you really want to increase your MRR, improving your budgeting and efficiency is the key.

It is understandable that budgeting is really hard. But to do it well, detailed planning and documentation will be a great strategy. Doing so makes you catch pitfalls more efficiently and lessens the chance for surprises within your control.

10. Inbound Marketing

If you are thinking of a way to improve your marketing approach without burning a hole in your wallet, inbound marketing is the answer.

Inbound marketing helps align what is valued by customers with the capabilities of your business. It helps you attract customers by creating valuable content and experiences tailored to them.

You’re right. It is a behavior-based marketing approach. Inbound marketing gives the value that customers are looking for. It shows how you can help solve their problems. Hence, an increase in your conversion rates.

11. Reduce your MRR churn

MRR churn is the enemy of every business. It greatly affects growth and makes it hard to make enough money to invest in your product and your people. So how can we combat churn?

One way to do it is to increase your active users. You have to remember that a lot of active cancellations come from individuals who don’t see the value of your product or service. so to lessen your churn, here are some tactics you can do:

  1. Ask for feedback and recommendations.
  2. Add personalization to every aspect of your customer experience.
  3. Provide great customer service.
  4. Keep nurturing your leads even when they already bought your product.

That’s it. If you can keep churn under control, then the sky’s the limit.

12. Embrace the power of content marketing

Model: @Austindistel https://www.instagram.com/austindistel/  Photographer: @breeandstephen https://www.instagram.com/breeandstephen/
Photographer: Austin Distel | Source: Unsplash

Content marketing–a cheap but effective method to get your tool or service out to a much bigger audience.

Creating content relevant to your audience, posting them across all channels, are effective ways to increase your MRR. Leads who are more educated about your product are easily converted to buying customers.

Remember that social media is really powerful. Repurposing your content can give your endless possibilities for growth and will surely increase your MRR without questions.

Content offers direct value to customers. So you have to strategically plan what type of content you are going to publish and when you should do them.

13. Run perk-based promotions

Have you seen promotional posts or ads that give you a perk when you avail of the product? I’m sure you have. It is undeniably true that customers tend to buy more if they can get more. And that is the power of running perk-based promotions.

Aside from creating brand awareness, it also increases attraction which can lead to your customers sharing them with their own community. As a result, your MRR increases as you get to have more buying customers.

14. Let the Newbies roll in

Content marketing, inbound marketing, and perk-based promotions can definitely increase your reach. This means you have to prepare a strategic approach on how you’ll get them rolling in.

Lead generations do not stop when your leads contact you and check your products or services. You have to strategize what to do next when you acquire them. It is also important that you know when’s the perfect time to put them under the sales team.

Customers usually hate it when they are overwhelmed. So better think of great strategies to acquire your leads and time them right!

15. Maximize and refine your leads

To increase your MRR, you should maximize the leads you are acquiring but you MUST also refine them.

This means that you have to filter your leads and make sure they are quality customers. When you say quality customers, it means that they do not buy just because of the perks or the discounts. Instead, they buy because they see your value and they really want your product.

And when customers buy because of value, they will stay and remain loyal.

16. Giveaways

GIVEAWAY
Photographer: Don Agnello | Source: Unsplash

Okay, you might be wondering how giveaways can help you you want to increase your MRR. You might think it is an additional expense, so it wouldn’t be a good thing.

You are actually right, it can add up to your expenses. But it is worth it. Running giveaways and viral campaigns gives you the power to increase your reach and refine your leads all at the same time.

Running a giveaway doesn’t really mean that you have to spend too much money. You choose to look for partners and sponsors from the same industry so you can get hold of leads that are already interested in your product or service

17. Target untapped markets

Another great strategy that SaaS companies can leverage is targeting untapped markets. I understand that sometimes, the hype of market competition excites us. So what we usually do is target those that our competitors are targeting. It is actually a good thing! But sometimes we tend to forget that there are still other markets that we can focus on.

Imagine how fast your MRR will increase if you compete with your competitors but at the same time focus on their untapped markets? It will not just increase. It will increase fast!

18. Be consistent.

We have come up with great strategies to increase your MRR, so the last thing and most important thing to do is to be consistent.

If you are going to continuously do these strategies and improve them as the competition continues to grow, your growth possibilities are endless.

Conclusion

MRR is the make or breaks metric for any business. With these strategies, grow your MRR and more. Saastronautics’ exclusive SaaS deals can help you automate the most tedious aspects of digital marketing, or identify important metrics about your client, and grow your MRR. Check our latest exclusive offers at https://saastronautics.com/deals

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Joon K Lee
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