Expanding Horizons: International Growth Strategies for B2B SaaS Companies

In the fast-paced world of B2B SaaS, staying ahead of the curve is crucial, and expanding into international markets offers a pathway to accelerated growth and enhanced brand visibility. Clément Dumont, a seasoned growth manager with over a decade of experience in the tech startup space, recently shared his valuable insights on achieving sustainable success through global expansion. Let's dive into his expert advice.

Understanding The Growth Syndicate's Approach

The Growth Syndicate, of which Clément is the co-founder, occupies a unique position in the market, as it aims to simplify the complexities B2B SaaS companies face as they scale, equipping startup founders and their teams with the tools they need to thrive in competitive markets. They can do so thanks to their team's extensive experience in diverse areas and across different roles within the startup space, which allows them to move comfortably between the realms of strategic consultancy and hands-on execution, to deliver high-quality growth and marketing strategies specifically tailored for B2B tech companies. 

As Clément explains, they realized there was a gap in the market between consultants, who are really good at the strategic side, but are not involved in the execution, and agencies, that often assign seasoned professionals in the early stages of a project, but then have someone more junior running the agenda, resulting in a lot of unrealized potential and missed opportunities. The Growth Syndicate decided to fill that gap by proposing themselves as a partner who can do both: first develop an effective growth strategy, and then execute it to its full potential with seasoned professionals that bring a wealth of experience accumulated over years working in SaaS companies.

Key Considerations for International Growth

Company Readiness: Is International Expansion the Right Move?

Jumping into a new market isn't just about adding another pin to your world map; it's a major strategic decision that requires substantial resources and company-wide commitment. Clément suggested that companies should first assess their readiness by aligning international expansion with their broader business objectives. Make sure every department, from finance to product development, is on board and geared towards this common goal, as a lack of alignment here can seriously hinder expansion efforts.

Market Analysis: Knowing the Terrain

Before diving headfirst into a new market, it's crucial to understand the lay of the land. What's the local demand like? What's the market size? And most importantly, what's your Unique Selling Proposition (USP) that will make you stand out from the competition? Clément stressed the importance of in-depth market analysis to really understand customer behaviors, regulatory requirements, and the competitive landscape. Ignoring these crucial aspects can lead to misguided strategies that fall flat.

Vital elements in that evaluation are market size and demand. Clément highlights two key questions you should be asking yourself:

• How big is the market where you want to enter?

• What share of that market do you think you can get?

Once you've answered those questions, you can start working on your positioning and messaging, along with the strategies to achieve your goals. As Clément explains, "there's a lot of research that goes behind this. And it's good to not skip that step because it is so important for the future." If you are interested in a more detailed breakdown of the elements you should take into consideration to expand effectively beyond your native market, check out our guide to global growth for B2B SaaS companies.

Common Pitfalls in International Expansion: Navigating the Potential Roadblocks

Clément didn't shy away from highlighting common missteps he's seen companies make. These three are the areas that he considers paramount:

• Underestimating the Need for Local Variation: One size doesn't fit all! Companies often make the mistake of applying a generic approach to different markets without considering local preferences and cultural nuances. As Clément notes, "It's important to keep in mind that some messages are going to resonate better in one country or another, or the way that people want to purchase is different in one country to another." Graziella Moschella, Senior Content Marketing Manager at deskbird also highlighted the importance of tailoring communications and messaging to the specific market. Another area where customer behaviours vary significantly across different markets is search habits, so it’s important to set up an SEO strategy that goes beyond the mere translation of keywords.

  
  

• Lack of Market Fit: Before even thinking about expanding, make sure your product or service has a solid product-market fit. "If you don't have market fit, you have bigger fish to fry. So focus first on that aspect," Clément advises. The importance of taking into consideration product-market fit was also highlighted by Sendcloud’s Ashley Herbert Popa, who went as far as identifying it as one of the crucial parameters to consider when deciding whether to invest in a specific market.

  
  

• Inadequate Resource Allocation: Expansion requires investment. Spreading your resources too thin without proper allocation can seriously hinder your efforts and lead to ineffective execution across markets. "You have to make sure that you have the financial and the human resources to sustain an expansion," Clément emphasizes. When it comes to financial resources in particular, it’s vital to understand that each element of the expansion strategy is to be considered an investment, not a cost, and therefore budgeted according to the potential revenue gain deriving from expansion. When it comes to localization specifically, B2B SaaS companies need to calculate their localization spend and the return on that investment as a part of their overall strategy, not as a checklist item to satisfy investors.

Strategies for Market Entry: Setting Yourself Up for Success

To avoid these pitfalls, Clément suggested the following strategies:

• Employ a Phased Approach: Don't go all in at once. Start small and focus on understanding what resonates with the local market before scaling up your efforts. "Start small and scale," Clément recommends. "You're probably doing way more in your native market than what you would do in a new market, at least at the beginning." This approach, which at Undertow we call Minimum Viable Experience (MVE), is an excellent way to test the waters in multiple markets at once without a huge upfront investment, and it allows you to gather data that will be priceless to inform your growth strategy going forward, especially when it comes to prioritizing certain markets over others based on their potential. 

  
  

• Leverage Existing Successes: You don't have to reinvent the wheel. Take successful strategies from your home market and apply them to new markets, adjusting where necessary to fit local needs. "We know what works in our market. Can we replicate this abroad?" Clément asks. "Don't try to reinvent everything, but try to focus on what you know already works." Again, it helps to start small and kick off your international growth from those features that make up the core of your product. We discussed this in detail with Formaloo’s CEO Farokh Shahabi in a podcast episode dedicated to the concept of Minimal Viable Product. Once you have established that in the target market there is indeed a demand for the solution you’re offering (and that has already proven successful in your home market), you can start expanding to other features organically.

  
  

• Focus on Alignment and Adaptation: Ensure that your entire organization, from top to bottom, is aligned with the expansion strategy and ready to adapt to the unique demands of each new market. "When you do something as big as this, you have to make sure that the full company is behind this, otherwise, I think the chances of success are quite slim", Clément stresses. While organizational alignment is important in most aspects of a company’s strategy, it is an absolute must when it comes to global expansion, as you want a motivated workforce that is committed to bringing the product to more people across diverse markets. Canva, a brilliant example of global expansion, understood how important this alignment is, which is why they had their localization and product development teams working so closely, as Michael Levot outlined for us in a recent blog post. 

Final Thoughts: Embracing the Journey

Building a successful international strategy for your B2B SaaS company is a journey that requires a deep understanding of both your company's capabilities and the target market's characteristics. Be prepared for challenges, but face them safe in the knowledge that the potential rewards are significant.

The key takeaway from Clément's extensive experience in this field? Don't just replicate past successes blindly; adapt to the nuances of each new market you enter. 

Luckily, his insights provide a valuable roadmap for any B2B SaaS company looking to make their mark on the global stage.

Want to Dive Deeper?

Clément has also recently established a thriving B2B community through The Growth Syndicate, offering a platform for meaningful connections and sharing valuable industry knowledge. Navigating international expansion might seem daunting, but with the right strategies, a good dose of planning, and a flexible, responsive approach, you can maximize your growth potential and achieve lasting success in new and exciting markets. At Undertow, we’re committed to helping you tackle the challenges of localization as you navigate the global expansion of your B2B SaaS business. Get in touch if you want to know more.