Purple Sales Blog

Now's the Time for Expansion Into New Markets

Written by Purple Sales Solutions | Jan 23, 2023 7:00:00 PM

The software-as-a-service (SaaS) industry is booming. With the industry expected to hit $716 billion by 2028, it's no wonder that more and more SaaS companies seek expansion into new markets. If your company wants to expand its sales into new markets, now is the time. 

Thanks to a growing remote economy, there are plenty of opportunities in today's marketplace. By taking the time to research your options and plan your expansion carefully, you can maximize your chances of success.

What Is Market Expansion

Market expansion is the process of entering into new markets with the goal of increased sales and profits. There are many ways to expand into new markets, and the best approach will vary depending on the products or services you offer, your target audience, and your overall business goals. 

When attempting expansion into new markets, it's important to validate the market thoroughly to ensure there is enough growth potential. Completing a comprehensive market expansion assessment to highlight the unique selling points of your products or services is vital for success. 

But why is now the time to get serious about market expansion?  Here are four profit-inducing reasons why the current global economic conditions are ripe for global expansion.

1. Economic Uncertainty Creates Areas Of Opportunity

Although some may be hesitant to implement changes to their business growth strategies during economic uncertainty, SaaS companies are well-positioned to capitalize on new markets. As competitors in your industry are pulling back, you can seize more of the market with less fight. 

With all the downturn in economic activity, marketing and sales costs are often lowered, making expansion into new markets more affordable. For example, 

One of our clients providing a HR talent management system, had established brand awareness and retained a large amount of customers within their home market in Brazil, and wanted to expand their operations to the US market. 

However, they did not want to disturb their existing sales team. So, they were looking for a partner with experience in the US market to get the first American early adopters. 

To take on market expansion more effectively, they outsourced their sales development activities to Purple Sales to build their desired pipeline more efficiently. 

Their requirement included at least fifty qualified meetings within the first nine months. Within the first six months of working with Purple Sales, we secured more than anticipated and they closed their first deals within the US market.  

2. The Barriers To Entry Are Lowered 

While the US boasts the world's largest economy, SaaS companies that are willing to take on global expansion can reach new clients, diversify risk, leverage resources, and even boost earnings. In the past, one of the most significant barriers to market expansion was the cost of doing so. But thanks to technology, that's no longer the case. 

A growing remote economy combined with the ability to automate marketing and outsource sales makes expanding easier and more cost-effective than ever. As a result, there's never been a better time to expand your SaaS company internationally.

3. Increasing Globalization Creates New Opportunities 

Global market expansion can be a great way to future-proof your position in the market. We live in an increasingly globalized world where businesses operate simultaneously in multiple countries and cultures. This creates new opportunities for companies willing to think outside their traditional markets and tap into new ones. The world is ever-changing, and if you're not looking at ways to evolve, you risk your company becoming obsolete.

4. Expansion Into New Markets Increases Brand Recognition

As more SaaS companies explore new markets for growth, global expansion becomes an increasingly important tool for brand recognition. By expanding into new countries and regions, SaaS companies can introduce their products and services to new consumers and create opportunities for increased sales. 

To maximize the benefits of global expansion, companies should carefully plan their strategies and allocate the necessary resources needed to succeed in new territories. By taking on a more strategic approach to expanding into new markets, SaaS companies can improve their bottom line while strengthening their brand worldwide.

The more exposure you have to new markets, the better chance that people in those areas will recognize your brand and purchase from what they see.

Why Now’s The Time For Expansion Into New Markets

Now is the perfect time for SaaS companies to expand into new markets. Technological advancements, sales outsourcing, and increasing globalization have made barriers to entry lower than ever before. 

Additionally, with economic uncertainty creating opportunities for those willing to take risks, there has never been a better time to seize market share and grow your company internationally. If you're ready to take your company to the next level, now is the time to start planning your market expansion strategy.

Purple Sales Solutions helps companies gain the momentum they need for expansion into new markets by taking a more structured, accurate, and effective approach to sales. As a result, outsourcing your sales to a high-performance sales partner can be a smart choice for any SaaS company wanting to expand globally. Contact us to get started.