The Best B2B SaaS Tactics and Key Metrics for 2022

The Best B2B SaaS Tactics and Key Metrics for 2022
Updated date:
Apr 18, 2022

Table of Contents

Due to the increase in demand, it is clear that B2B SaaS marketing has a bright future ahead. So if you're new to the market, it's essential to take the time to understand what this SaaS marketing strategy is. The most common best practices and, most importantly, the most common mistakes marketers make.

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But First, What's B2B SaaS?

Did you know that B2B SaaS has been around since the 1960s? However, significance and effectiveness have increased substantially in recent years. Consider the following data:

71% of businesses are currently deploying cloud-based SaaS to enhance their IT service delivery speed. 93% of CIOs stated that they are planning to adopt cloud SaaS.

B2B SaaS refers to companies that provide software (apps, extensions, add-ons) to other businesses as a service. The products function with highly automated technology to assist companies in operating more efficiently and effectively.

What is B2B Saas Marketing?

This marketing strategy is what it sounds like: marketing your SaaS products and services to businesses with the goal of a sale. Easy, right? - Think again.

SaaS marketing for B2B is one of the most challenging marketing tasks because you sell something virtual compared to a physical product. The core difference between SaaS marketing and traditional marketing is that your end-user isn't always the "decision-maker."

You have to create a sales strategy that will work for every customer individually and give them the best possible deal they can get. 

You may ask, how do I grow my SaaS business?

Let us go over eight tactics you can use when scaling up your SaaS company so that you won't have any problems expanding.

Best SaaS Tactics for 2022

1. Redefine Your Sales Strategy.

There are compelling reasons why you have to redefine your sales strategy.

Best SaaS Tactics for 2022

3. Build a Customer Persona.

Companies need to ensure they have a deep understanding of their prospects' needs. That is why a B2B company must have a customer profile for every individual who patronizes their product or service. 

When you have an excellent record of customer personas, you know how to approach them and eventually give them the best customer experience. As it is now, customer experience is the battlefield. And if you have an excellent database of your customer personas, your success rate is optimized.

4. Define Value Proposition.

Scaling your business also means expanding beyond your current niche. You have to define the value of your proposition to convince customers why they should buy products and services from a company that is not from the same industry. 

To do this, you need salespeople who can articulate a value proposition effectively and someone who can find potential markets.

1. Implement Lead Generation Tactics 

Implement lead generation tactics as early as possible. This way, you scale up your business correctly and reach a wider audience. Have you thought about growth hacking?

It is a proven method that can quickly help a business attain success. Growth hacking is not just a buzzword. Just ensure you pick the suitable approaches.

2. Create an effective content marketing plan.

Content creation is vital in the B2B business because it gives potential clients value when they visit your website and makes them want to come back for more whenever you have new blog posts.

Great content can fuel your marketing campaigns. Of course, it is an excellent way to attract clients. You can experiment with many channels to see which one could work best for your business.

3. Keep your customers insanely happy.

Ask for feedback from your customers to show that you are genuinely interested in how they're using your product so that you can offer them the very best version of it.

Companies with a customer-focused strategy are more successful than those focused inwards on their product. 

Train your customer support and customer success teams to empower them to correctly solve challenges for the clients you have worked so hard to win over.

4. Build a referral program.

Turning customers into ambassadors of your products is the path to go when you want to scale. Gain advocates by customizing outreach efforts, such as a personalized video, email, or even engaging in honest conversations with your clients.

Timing is also essential: it's wise to ask for referrals only after receiving positive feedback from clients. 

Customer advocacy strategies are a significant competitive advantage if you know how to leverage them. Approach customers with a combination of respect, trust, and goodwill to motivate them to put in a good word for you.

5. Penetrate the Global Markets.

Research which markets are worth giving a try. Then figure out the consumer behavior of the countries you want to sell. Consider the payment methods available and which support method they prefer.

Selling your products and services in the global market is a milestone in the growth journey of your business. You must use a local approach in your global selling strategy. 

Go to Market strategy for B2B SaaS.

There are over 15,000 SaaS companies, and your success is dependent on the marketing strategy you use.

Research which markets are worth giving a try. Then figure out the consumer behavior of the countries you want to sell. Consider the payment methods available and which support method they prefer.

Selling your products and services in the global market is a milestone in the growth journey of your business. You must use a local approach in your global selling strategy. 

According to Gartner, the SaaS market will exceed $170 billion by 2022. To stay ahead of aggressive competitors and capitalize on this opportunity, your brand must prioritize its GTM strategy.

Success in a B2B service venture or product release necessitates a high level of confidence and enthusiasm for the technology. Funding is especially crucial in this regard. Customers, in most cases, do not recognize the need for your product right away.

At the same time, purchasing decisions necessitate approval from a diverse group of people, and there is universal resistance to being "sold." 

To overcome this daunting challenge, forget the traditional product-centric framework and do not fall into the trap of leading with product in favor of a more customer-centric GTM approach.

Common Mistakes to Avoid

1. Prolonging The Free Trial Model

Most trial packages fall between 15 and 30 days, but some companies go overboard with trial packages extending from 60 to 90 days. Now, come to think of it, if the user couldn't conclude within a week or two, would extending the date help?

2. Getting Into Paid Acquisition

  • Despite what you might perceive, the paid acquisition doesn't help as much as it might cost you. Getting broke at the beginning of your startup is not a pleasant situation.
  • Working on your traffic and prospecting first is the best approach. You may start with these:
  • Extensive blogging
  • Guest blogging
  • Connect with social media influencers.
  •  Write Case Studies
  • Lead Nurturing
  • Build a referral chain.

3. Falling Into The "Discount" Trap

Customers might balk at the idea of purchasing when they see excessive discounts. Chances are, the customer will think that your product or service is not worth it. Or that you are selling at your best price.

4. Overlooking The Credibility Of The Product

Remember that you must be able to back up your sales and marketing efforts with an excellent and reliable product that will solve the problems of your target audience.

5. Ignoring Customer Retention

Legendary copywriter Gary C. Halbert once wrote, "The best list of all is your customer list!"

According to Marketing Metrics, there is a 60% chance that an existing customer will purchase again. In comparison, a new visitor on your site has a 20% chance of becoming a paying customer.

You have already acquired customers who are way more profitable than newly acquired leads.

Challenges for SaaS Marketing

  • Building credibility/trust (75%)
  • Creating brand awareness (86%)
  • Educating audience(s) (79%)

Why so?

1. End-users feel they aren't getting their money's worth.

Since it is not tangible, it can be challenging to convince users that a SaaS product is worth its cost. Instead of simply stating what you have to offer, present case studies and testimonials to show how SaaS software can help businesses.

2. Faster cancelations.

Being agile in marketing and product development is SaaS's advantage. But it can also work the other way. Clients can just as easily and quickly push the unsubscribe or cancel button. Having a long-term contract is advisable.

3. Advanced online platforms and servers.

Connectivity can be an issue and a major cost for companies. Due to its advanced features, a SaaS product calls for a stable and reliable internet connection. Or it could affect the operation of an entire organization.

So make sure you can deploy a wide array of powerful features seamlessly and speedily.

3. More competition.

True, it depends on the industry. But some fields are already so cluttered with existing SaaS products. It is essential to reach suitable digital spaces.

True, it depends on the industry. But some fields are already so cluttered with existing SaaS products. It is essential to reach suitable digital spaces. Communication is the key.

Key SaaS Metrics

In SaaS, as with any other business model, it is crucial to measure metrics when growing your business. Metrics are indexes of the health of your business endeavors.

You have to keep a keen eye on these:

1. Monthly Recurring Revenue (MRR)

For SaaS businesses or any business for that matter, recurring monthly revenue is essential. It ensures your day-to-day operations are running without having to worry about making money. It's just one number to track all your sales, price plans, billing cycles, and subscriptions.

For calculation, use this equation:

 \Monthly Recurring Revenue (MRR)

2. Annual Recurring Revenue (ARR)

The annual recurring revenue, also known as the annualized run rate, is the revenue generated per year.

For the calculation, use this very simple formula:

‍2. Annual Recurring Revenue (ARR)

3. Churn Rate

Churn rate points to the clients that left or unsubscribed within a certain period. The Rate of churn can reveal to you exactly how satisfied clients are. 

Use the following formula to calculate the churn rate:

3. Churn Rate

4. Average Revenue Per Account (ARPA)

This metric reveals how much income is derived from a client per month, quarterly, or annually.

Use the following formula to calculate ARPA:

Average Revenue Per Account (ARPA)

5. Monthly Recurring Revenue (MRR)

MRR is the anticipated income that can be expected per month. Measuring MRR can help you understand the month-to-month variations in your income. 

Use the following formula to calculate MRR:

Monthly Recurring Revenue (MRR)

6. Customer Acquisition Cost (CAC)

It is crucial to determine how much time and money you need to acquire a new user. It is one of the best ways to know if your SaaS company is profitable. 

Use the following formula to calculate:

7. Customer Retention Rate (CRR)

On the other end of churn is customer retention. This metric reveals the percentage of customers who continue to pay for using your software.

Use the following formula to calculate:

Customer Retention Rate (CRR)

8. Customer Lifetime Value (CLV)

This metric shows you the average revenue from users during their subscriptions to the software.

Use the following formula to calculate: 

Customer Lifetime Value (CLV)

9. Net Promoter Score (NPS)

The net promoter score measures customer satisfaction using customer surveys. NPS is an excellent way to gauge customers' feelings after a change to your service or an update. 

NPS works on a scale from 0-10. 0 means the customer will never recommend your service. Ten means they will recommend it, so it's an indicator of customer success.

10. Active Users

One of the essential KPIs is your service or product's number of active users. It is necessary to track this closely to show whether you have a healthy customer base.

However, the usage dimensions of SaaS products and services differ and vary. You have to figure out in your case what defines an active user and calculate according to your preference.

11. Conversion Rate

The conversion rate will let you know how well you convert leads into sales. So, the higher the conversion rate, the greater your revenue.

Use the following formula to calculate:

Conversion Rate

The Final Note

SaaS is the name of the game. - Are you a winner or a loser?

Everything boils down to understanding, measuring, and monitoring the proper SaaS metrics and KPIs. With all that data, historical data from the success of other SaaS companies, and your team, you can genuinely achieve sustainable SaaS business growth. 

Scaling your business requires teamwork and collaboration or scaling a SaaS business. Make the right business decisions, and allocate resources the right way. And most importantly, always keep an eye on your metrics and don't wait too long to make adjustments.

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