8 Proven Strategies for SaaS Companies to Enter Western EU and US Markets
Joshua D'Costa
Growth & Marketing
Jul 11, 2025
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8
min
The US SaaS market alone was estimated at 115 billion dollars in 2024 and is predicted to be worth around 412 billion dollars by 2034, US and Europe leading the way, European markets like Germany and France are also growing. Germany’s SaaS revenue is expected to more than double from 6.85 Billion in 2022 to 16.3 Billion Euros by 2025.
SaaS founders can diversify revenue by focusing on the west , by tapping customers with higher ARPU, and engage more mature buyers. These markets are large, affluent, and digitally advanced, making them attractive targets for scaling your product globally.
However, new markets also bring new challenges. To succeed, you need to prove demand, adapt your product and pricing to local norms, build the right infrastructure, and comply with local laws. Here are eight strategies for SaaS companies to expand in the Western Market.
8 strategies for SaaS companies to expand in US and Western Europe Markets
Confirm Product–Market Fit Before You Launch
Start by looking at where you already have traction. If trial users are signing up from Europe or North America, that’s a strong early signal that your product can resonate there.
Run a small, paid pilot in one target region for example, a limited trial in the UK or a pilot project with a German enterprise. Make it a paid or paid-freemium test, rather than a free demo, so both you and your prospects treat it seriously. Agree upfront on success criteria, timelines, and who the key decision-makers are.
Gather honest feedback on pricing, features, and onboarding. Use those insights to refine your product roadmap and go-to-market tactics.
When pilot users become paying customers and share their positive experiences, you’ll have clear proof of product–market fit along with real credibility to fuel a bigger launch.
Localize Without Losing Momentum
Localization goes beyond language to include cultural norms, design, and pricing. Key focus areas include:
Language & UX
Translate your UI, documentation, website and emails into the target language. Adjust date formats, units, icons or graphics if needed, and ensure the user experience feels familiar.
Even subtle details like colors, icons, layout may need tweaking.
Cultural Adaptation
Modify messaging and marketing to match local business etiquette. For instance, Western Europeans may prefer a more formal tone than Silicon Valley startup lingo.
Tailor your site’s value propositions, e.g. GDPR compliance is a selling point in the EU. Research local competitors’ messaging to find what resonates.
Local Payment Methods
Integrate popular regional payment options.
Credit cards and PayPal dominate the US and UK, but other markets rely on local wallets or bank transfers, Giropay in Germany or Bancontact in Belgium. Offering these can boost conversions.
Pricing & Billing
Show prices in local currency and consider different tiers or billing cycles aligned with local norms.
Currency & price localization is crucial. Just translating USD to EUR or GBP without adjusting price points can cut conversion rates by 30%.
For example, you might offer smaller, cheaper entry-tier plans in price-sensitive markets, or round prices to local preferences e.g. ending in 99 or 95 for some cultures.
Local Messaging & Offers
If B2B buyers in France expect longer free trials than US buyers, adapt accordingly. While the core product can stay the same, tweaking your pitch to each audience ensures you don’t lose momentum by seeming “foreign.”
Proper localization can include essential translations and currency display, then gradually deepen localization after launch. Basic localization shows respect for the customer’s experience.
Software localization can improve customer experience and satisfaction, giving you a competitive edge.
Build a Scalable Tech & Payments Infrastructure
You need a solid technical and payment foundation that scales globally. Two key pillars are distributed architecture and global payment support:
CDN-backed, Multi-Region Deployment:
To serve customers in the US and Europe with low latency, use a geographically distributed setup.
At minimum, put your static assets like website, image etc on a CDN with edge nodes around the world e.g. CloudFront, Cloudflare. Edge caching can dramatically cut page load times for far-flung users.
Eventually, consider full multi-region deployment: run your app in both a US and EU data center so user data can reside close to them. This not only improves performance and uptime, but also helps with regulatory data residency rules.
Global Payment & Merchant-of-Record:
Look for a gateway or Merchant-of-Record (MoR) like Dodo Payments provider with broad currency support, strong international presence, and built-in compliance features.
In practice, this means you can accept euros, dollars, pounds, etc., and use local payment methods. A good provider will also automate VAT/GST collection and remittance.
An MoR partner can collect and file these taxes on your behalf. The same goes for US state sales taxes, handling all 50 states is complex, so many SaaS firms use partners to manage that.
Choose payment tools that scale:
They should handle large transaction volumes and include features like automated recurring billing, retries on declined cards, and detailed reporting. Ensure seamless integration with your system (CRM, invoicing, subscription management).
Think of your payment processor as a partner, choosing the right partner is crucial for reliable global transactions.
Prioritize Strong Compliance & Data Protection
Entering new markets means meeting local laws and compliance isn’t optional. Here’s what to focus on:
GDPR in Europe
The EU’s data protection rules cover any business handling EU citizens’ data. You must obtain clear user consent, encrypt personal information, honor data-access requests, and report breaches promptly. Fines can reach €20 million or 4% of global revenue.
Update your privacy policy, implement consent flows, and consider appointing a Data Protection Officer. Stay current on evolving EU regulations like the Data Act and NIS2.
US Privacy Regulations
The United States relies on state and sector laws instead of a single federal framework. California’s CCPA/CPRA applies if you serve Californians, while HIPAA governs health data and SEC rules affect financial services.
Map out where your users live and which laws apply, and seek local legal advice to avoid missteps.
Tax & Invoicing (VAT / Sales Tax)
Digital services in the EU and UK require charging VAT at each customer’s rate. In the US, sales tax on digital products varies by state.
Managing dozens of tax regimes is complex, an entity like Merchant-of-Record can automate tax collection, registration, and remittance, so you stay compliant without building a full tax team.
Industry-Specific Rules
Some verticals have extra layers: health apps need GDPR and HIPAA, payment services must follow PCI DSS, and financial tools face SEC oversight. Verify that your product meets any additional regulations in each sector.
Proper compliance builds customer trust and shields you from hefty fines. Consider early investment in legal counsel or compliance platforms and simplify the process.
Craft a Smart Go-To-Market Strategy
Choosing how to reach customers in new regions can make or break your expansion. Consider these common models:
Direct Sales / Remote
Bring on a local sales team or have your existing reps sell remotely. This gives you full control over messaging and pricing but hiring locally is costly and time-intensive. Indie teams might lean on digital tactics (inbound marketing, self-service trials) instead of field reps.
Channel Partnerships
Many SaaS firms grow faster by working with resellers, distributors, and integration partners. Top tech companies generate 65–95% of revenue through partners, cutting time-to-market by around 25% and reducing sales expenses by up to 30%.
You will share margins and cede some control, so a hybrid approach like direct for flagship accounts, channel for broader reach, often works best.
Acquisitions & Joint Ventures
Buying a local competitor or forming a joint venture can instantly unlock established relationships. This route suits well-funded or highly strategic moves.
SaaS Marketplaces & Integrations
Listing on cloud marketplaces or app directories (G2, AppExchange) drives discovery with minimal overhead. Building integrations with popular local tools can further boost visibility.
No matter which mix you choose, do your homework:
Study local sales customs e.g., is cold calling well-received? Do deals close faster over coffee meetings?
Use Account-Based Marketing (ABM) for high-value targets, majority of SaaS marketers rate ABM as very successful, thanks to its precise focus on ideal customer profiles.
Measure and optimize each channel’s ROI like cost-per-acquisition, deal size, conversion rate and double-down on the best performers, combining direct and partner channels can boost revenue growth by 15–20%.
A thoughtful, data-driven GTM mix ensures you hit the ground running and scale sustainably into Western EU and US markets.
Recruit Local Talent & Support
Even a top-tier product can falter without on-the-ground expertise. Hire or contract local staff for sales, customer success, and support to ensure:
Cultural Fluency & Language Skills
Regional hires know local buying cycles and customer expectations, a Paris-based salesperson navigates French corporate buyers, while a Dublin support rep offers timely, native-language assistance.
Follow-the-Sun Support
Set up support handoffs across time zones so someone is always available. A California team handles U.S. daytime, then passes tickets to Europe for EU hours.
Even small SaaS teams can implement this with one remote office or rotating shifts, preventing overload and delivering 24/7 coverage.
Continuous Market Feedback
Local teams spot region-specific feature requests and market trends. An EU manager may flag popular feature tweaks, while a U.S. rep uncovers niche customer segments. These insights help you iterate and refine product and messaging faster.
Use Account-Based Marketing & Pricing Experiments
Targeting and pricing are critical for international growth.
Account-Based Marketing (ABM)
Focus on a shortlist of high-value accounts by industry, size, or region in Western EU/US markets.Personalize outreach with tailored content, local events, or in-language webinars.
Regional Pricing Tests
Start with localized currency display, then run experiments: free trials, freemium tiers, or special introductory rates.
Track willingness to pay, Nordic customers may accept prices 20% higher than the US, while French SMBs prefer monthly billing.Small tweaks using €99 instead of €100 can change perception.
Always A/B test or roll out pricing changes by region. Monitor key metrics like conversion and churn, then refine until you find the optimal price point for each market.
Monitor, Optimize & Iterate
Treat expansion as a continuous learning process, track region-specific metrics like ARR, conversion rates, churn, and customer lifetime value for Europe vs. the US.
Use dashboards that break down results geographically; when a region lags, investigate marketing, pricing, or UX gaps.
Compare trial-to-paid conversions and tweak onboarding flows or plan structures to boost performance.
Collect feedback through surveys and customer interviews to refine your product, documentation, and sales tactics.
Set clear quarterly regional goals (new logos, revenue targets) and review them regularly.
Become data-driven in each market and pivot quickly to maximize success.
Scale Thoughtfully
Finally, don’t try to conquer all markets at once. Begin with one or two and master those before expanding further. This phased approach lets you concentrate resources and learn in depth.
Once you see success in initial regions, re-assess priorities. Keep an eye on emerging opportunities too, for instance, a big customer trial in a new country can dictate your next focus. Scaling thoughtfully as each new market adds complexity.
Consider partnering with a Merchant-of-Record like Dodo Payments to simplify cross-border billing and compliance, and you’ll be well-equipped to focus on growth rather than paperwork.
