What is SaaS Market Expansion? 

Market expansion is a strategy employed by SaaS (software-as-a-service) companies to present their products or services to new regions.
The goal behind this strategy is to broaden their reach by identifying new customer segments and income streams. 

Market growth strategies for SaaS can be broken down into these four types. This includes market expansion (also known as market development), according to the Ansoff Matrix. 

• Market Penetration: sell to more clients in your existing market.
• Product Development: keep to your existing market but generate new products to sell. 
• Market Development: selling your current product or products to new markets.
• Diversification: develop new products to sell in new markets.

These growth strategies are some options to consider: 

• Geographic Expansion: Begin to target new territories or shift your focus to new geographic regions within your current country of operation. 

• New Market Segments: Change the type of customer you target based on industry, vertical, or company size. 

• Partnerships: Partner with resellers or distributors with whom your new target customers are already associated.
• Localization: Modify your SaaS product to appeal to new local markets. Change the product’s language, add or subtract features, and comply with new regulations.

Streaming service provider Netflix started selling to new markets, moving from being US-based. The company commissioned local content, adapted their content for local markets, changed their pricing structure, and localized their product. Netflix is now a worldwide service.

Three benefits of this growth strategy are: 

• Increased Revenue: Target different customer segments and obtain sales
• Diversification: Penetrating multiple markets reduces the chance of your product failing if trends and consumer habits change.
• Global Brand Recognition: Presenting your product to new regions impacts your business’s visibility level