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SaaS marketing strategies are all about finding the right audience and delivering a message that resonates with them. The best approach to this is understanding who they are, what they're interested in, and how they prefer to consume information.
Awareness of its effectiveness and superiority as a business model has gained momentum. SaaS is now dubbed as the present and future of software. Today, we will walk you through SaaS marketing and share with you magical tricks that will make you an exceptional SaaS product seller.
Before we get into a thorough analysis of SaaS marketing strategies, let's get a clear view of SaaS marketing.
What is SaaS Marketing?
Software-as-a-service refers to software applications accessible from any device via an internet browser or mobile app. This app allows users to access their data without downloading and installing anything locally on their computer or smartphone.
SaaS marketing is a relatively new concept. However, it has become popular because of its ease of use and accessibility. It focuses on promoting and gaining leads for subscription-based SaaS products.
Software as a Service has been steadily growing in acceptance in the business world. And its popularity has grown exponentially since 2020 because of the COVID-19 pandemic.
By 2021, the SaaS industry had reached 157 billion U.S. dollars, and it's expected to eclipse $140 by 2022. We see the SaaS reach a whopping $623 billion by 2023 at a compound annual growth rate of 18.
The SaaS marketing teams play the role of compiling marketing messages that help market your product to prospective customers. They also take part in executing the SaaS marketing strategies.
How is SaaS Different from Traditional Marketing?
The most significant difference between traditional and SaaS marketing is that SaaS takes over the internet. Traditional marketing requires purchasing advertising space on TV, radio, and print.
With SaaS marketing, you can send your message directly to your audience, and you don't need to pay for an ad campaign; you need to ensure your content is good enough to attract people who want what you're offering.
Another big difference is that SaaS doesn't require you to invest in expensive equipment or hire employees to run campaigns. Instead, you provide your audience with the tools they need to find your service.
Examples of Most Popular SaaS Companies
HubSpot: A marketing automation tool that helps you create content, track your results, and automate repetitive tasks.
Zendesk: is an issue tracking platform used by thousands of businesses worldwide.
Salesforce: A CRM service that helps sales teams organize leads and close deals faster.
Google Analytics: This is a free web analytics tool that lets you see how people interact with your site.
Microsoft Office 365: Office365 is an online subscription service including Microsoft Word, Excel, PowerPoint, Outlook, Publisher, Skype for Business, Yammer, SharePoint Online, Project Online, Visio, and Lync.
Oracle Database: Oracle Database Cloud Services delivers a complete set of database capabilities, allowing users to get started quickly and easily.
Shopify: Shopify is an ecommerce website builder that makes it easy to sell products online.
To name a few.
How do I choose a good SaaS company?
There are several things to keep in mind when selecting a B2B SaaS marketing agency.
First, look at reviews from previous clients and check out what results they've had. It's also helpful to talk to current clients to give you an idea of the service's quality.
Finally, look at how long the agency has been operating-the longer an agency services period, it probably means that the agency has developed a reputation.
What are the critical SaaS business metrics to monitor?
Many SaaS businesses struggle to grow their user base. This is especially true for new companies that haven't yet gained traction in the marketplace.
To help these businesses succeed, we recommend monitoring five SaaS business metrics.
LTV is one of the most valuable metrics for measuring the success of your SaaS business. It helps you know how much money your customers spend on your platform.
It does this by calculating the average revenue per customer and dividing it by the total number of active users. If you're looking to increase your LTV, improve retention rates.
Customer Churn Rate.
Churn is simply the number of users who leave your service within a period.
A higher churn rate shows that your customers leave your platform over dissatisfaction with the service.
Customer acquisition cost (CAS)
CAS refers to the amount of money it takes to gain a single customer.
It represents the total sum of all costs associated with acquiring a new customer.
Monthly Recurring Revenue (MRR)
MRR measures the amount of money your customers pay you every month. The higher the MRR, the better.
However, it is best not to rely solely on MRR to measure success. Instead, it would help to consider using it alongside other metrics, such as lifetime value and churn rate.
Retention rate refers to the percentage or ratio of existing customers who continue to use your service after a certain point in time.
The higher the customer retention rate, the more likely your customers will stay loyal to your platform.
Why should I use a SaaS marketing strategy?
Using SaaS marketing cuts costs. Instead of investing heavily in equipment and software that may not work, companies only pay monthly fees to providers who take care of everything.
Flexibility & Mobility
One of the most incredible things about SaaS marketing is its flexibility.
SaaS marketing, however, is accessible from anywhere there is an internet connection. If someone wants to access your app or program, they don't even need to be connected to a smartphone. They can open a laptop or desktop computer and log into your account.
So, if someone wants to access your app or program, they don't even need to be connected to a smartphone; they can open a laptop or desktop computer and log into your account.
Another advantage of SaaS marketing is scalability. Your business might grow one day, but your marketing budget doesn't have to grow along with it.
Because your provider takes care of the infrastructure, scaling is simple and easy. Pay for additional users and devices when needed.
Since SaaS marketing relies on technology, reliability is essential, especially since clients access your product remotely.
Since your provider handles everything, they should immediately control most issues, including upgrades, maintenance, backups, among others.
With SaaS marketing, you have complete control over every aspect of your business. You choose the features, the pricing structure you'll follow, and what type of content you'll share. This allows you to customize your service to fit your specific needs.
You choose the features, what kind of pricing structure you'll follow, and what type of content you'll share. This allows you to customize your service to fit your specific needs.
Tips on How to Create a B2B SaaS Marketing Plan?
To create an effective SaaS marketing plan for your business, follow the tips below.
1. Know what you want.
Do you want more leads? More customers? Better conversions? Knowing these answers will help you determine whether it's worth your time.
2. Understand your audience.
Once you have set your goals, you need to understand your SaaS customers. These will allow you to tailor your message to them.
3. Create an action plan.
Once you know your audience, you must also decide how you plan to get there. Will you send emails? Use social media? Post ads?
Whatever it is, determine which method works best for your brand and then implement it.
Measure results. Finally, it's crucial to measure results once you implement your plan. Are people responding to your messages? Have they converted? If not, why not? Once you figure out the problem, you can change and improve your results.
Top SaaS Marketing Strategies to Ramp up your Lead Generation Efforts
The following SaaS marketing strategies will help you stay ahead of the competition in 2022.
Create a Content Marketing Strategy
Software-as-a-Service (SaaS) takes advantage of SaaS content marketing as a primary strategy for growth. Potential SaaS customers that are more likely to adopt a new software-as-a-service marketing platform are those who might already search for a solution for their pain points online.
B2B SaaS companies can leverage this opportunity by creating high-quality content that solves real customer problems. Content marketing is a cost-effective way to gain new customers.
A successful SaaS marketing strategy content generates 5x the ROI compared to other forms of digital advertising like paid search or display ads.
This is not as simple as you think because it's not just about coming up with content but also making sure that it provides value to your target market.
Helpful Tips on How To Create a Relevant and Attractive Content for your SaaS Blog
- Ensure that you align your content with informational intents, educating consumers who eventually seek to make a deal
- Define your audience
- Define your brand
- Evaluate your competitors
- Identify your strategic goals & pain points
- Be authentic
- Plan your social media usage
- Join conversations
- Publish often
While Writing a Blog Don't...
- Set Unrealistic Goals.
- Limit your word count.
- Make grammar mistakes.
- Be afraid to try new things.
Use SEO for Lead Generation
Search engine optimization (SEO) is still the top B2B SaaS Marketing strategy to drive traffic to your sales funnel.
However, if you're using SEO to generate leads, you may find yourself behind competitors that are actively generating leads through paid search campaigns.
To compete effectively against paid search, you'll have to invest in SEO. This means investing in content creation, link building, and keyword research.
Many search engines rank websites based on the number of backlinks pointing towards them. So if your website doesn't rank well, people won't find it when they search for keywords related to your product or services.
You should first conduct keyword research on your target market to solve their problems to optimize your site. Then, include those keywords throughout your site so that Google knows your page applies to each keyword. This will make your site will appear higher in SERPs.
Run PPC Campaigns
Pay-per-click (PPC) advertising is another effective SaaS marketing strategy that allows you to bid on specific keywords related to your products or services.
An effective SaaS marketing strategy uses organic and paid search to reach your target audience. Paid search helps you attract qualified leads, while organic search drives traffic to your website.
Your marketing team should consider the following factors before starting a PPC campaign:
• Keywords - Choose highly competitive keywords relevant to your business. If there are too many keywords, narrow the list to 3-5 keywords.
• Budget - Set an appropriate budget for your campaign. Start small and increase spending.
• Landing Page-A landing page is where people end up after clicking on your ad. Make sure it matches the purpose of your campaign.
So, investing in a good SaaS marketing strategy like PPC advertising could help you achieve better results than solely relying on organic search.
Offer free trials
Companies often struggle to convert trial sign-ups into paying customers. Many people don't bother signing up for a free trial to make matters worse. So, how do you overcome this? Simple. Offer a freemium model trial period with no credit card information.
A Freemium model is a proven way to increase conversion rate and build trust among your target audience. You can use free trial pages on your website to collect emails from interested prospects. You can use these emails later to nurture leads into paying customers.
Improve on customer experience
The customer experience (CX) refers to the overall interaction between a company and its customers. It includes everything from the quality of products and services to ease ordering and delivery.
This is the most critical SaaS marketing strategy because it affects every aspect of your business.
In fact, according to Gartner, CX accounts for over 70% of revenue growth.
How can you improve your CX?
1. Offer personalized experiences
Customers expect companies to have their preferences at hand and want to feel like they matter to you. That's why your website is mobile responsive and has an excellent design.
2. Listen to feedback
Customers love to share their opinions online. If you don't have a customer satisfaction survey, start collecting feedback. You can ask your clients to rate your products or services on a scale of 1 to 5 and then analyze the data to spot trends and improvement areas.
3. Provide value
Your customers are looking for something valuable from you. So, make sure that it is something that meets their needs. If they don't, they might leave.
4. Deliver faster
The internet is changing at lightning speed. Customers expect fast responses. To keep up, you need to invest in technology such as AI-powered chatbots and machine learning. These tools will help you automate processes so that you can focus on what matters most — providing exceptional service.
5. Offer Rewards
People love receiving discounts and other perks. According to research, people will pay an average of $10 extra per month if they get free stuff. So, consider offering incentives to attract new customers. For example, you could give away a discount code worth $100 to all new subscribers.
Get Listed on SaaS Review Sites
These websites allow businesses to publish reviews about their products and services. It's another SaaS growth strategy that can increase sales and conversions. But before you jump in, there are two things you need to do first.
First, figure out which review platforms work best for you. Many options are available today, including Google Reviews, Trustpilot, Yelp, Angle's List, among others.
Second, create content that engages potential customers. You don't just want to write a few sentences; you also want to include links to your social media pages and videos that showcase your product.
Also, make it easy for customers to leave reviews. This means making your contact form intuitive and straightforward.
Also, ensure your business address is visible on every page. When someone leaves a complaint, follow up immediately. Responding within 24 hours shows you care and will resolve their issues.
Invest in Referrals
Undoubtedly, referrals are a great way to grow your business. Meaning, when someone refers a friend or colleague to your website, they can earn a commission. And since referrals cost nothing to generate, they're a great way to build long-term relationships.
With a Saas referral program, you can encourage your existing clients to share your link with friends and family. This creates more opportunities for word-of-mouth marketing.
According to a study by HubSpot, referrals account for nearly 50% of all visits to e-commerce sites.
Here are few ways to encourage referrals:
1. Give a referral bonus.
Offer a reward for referring friends. A $50 gift card is a popular choice because it's inexpensive, yet valuable enough to entice users to share your link.
2. Offer exclusive deals
Give special offers to those who refer to friends. Offering exclusive deals like free shipping or a 30-day money-back guarantee boosts customer loyalty.
3. Reward sharing
Create an incentive for people to share your link. For example, if you have a Facebook contest, give prizes to the winners. This encourages your fans to spread the word about your site.
4. Make sign-ups easy
If you've been trying to get new leads, you know how frustrating it can be. That's why it's crucial to streamline the process so that prospects can easily register for your services, but many companies overlook this step.
One thing that makes it difficult for people to sign up is tedious processes. Make signing up quick and painless by reducing the steps needed to complete registration.
According to a study, shorter sign-ups increase conversion rates by about 30%. Therefore, registrations with fewer hurdles make up a great Saas marketing strategy.
5. Offer Eye-Catching Deals
You want to attract attention, right?
One way you can do this is to offer discounts and promotions. For example, you could create a discount code for first-time buyers. Or you could offer a promotion for a limited period.
This SaaS marketing strategy works well for businesses that sell products or services at higher prices.
Patience is required when selling SaaS products, as the sales cycle takes longer. You can use the longer sales cycle to your advantage because it gives you more time to nurture and hook clients.
Having learned about SaaS's marketing strategies, let's dive into how you will employ them to sell your Saas products for your B2B company.
How can you effectively sell your SaaS products?
Create strategic trial periods.
For some SaaS providers, free trial offerings are standard practice. It is an excellent way to hook new users. However, you must design a strategic approach for it to be effective.
The trial period can provide valuable insights into prospects' usage and behavior patterns. It shows whether prospects are likely to purchase and how they would use the software when they buy it.
Keep in touch with your prospective client during the trial.
By constantly checking up on prospects during the trial period, you keep them engaged, and you can receive feedback in real-time.
Arrange for valuable demos.
You do not want to bombard your prospects with information that can create an overload. Your ability to conduct a brief yet exciting and effective product demo can make or break a sale.
Create annual plans.
While it is a standard practice for many SaaS companies to offer monthly subscriptions, it is more strategic to leverage annual subscriptions. The monthly model can help with recurring revenue, but the yearly model can pull in more funds, and it is a better strategy for customer retention in the long run.
Cross-sell and upsell to current customers.
One effective way to boost your revenue is to upsell and cross-sell your current clients. This process allows you to provide more value to your existing customers as they might need additional features and services; why not from you whom they have a built trust?
One way to increase software adoption within your target market is to improve one's products. As a sales rep, you have the moral obligation to inquire about how clients are faring with your products.
When you ask for feedback, they will feel valued, making it easier for you to upsell or renew contracts later.
SaaS sales are notably sensitive to forgotten details and conversations because of their long sales cycle. However, if customers invest hundreds and even thousands of dollars in a software solution, we expect high care and attention.
For this reason, you must leverage a CRM to keep track of pertinent customer details and keep a tight watch. Knowing your customers well can foster beneficial relationships and a deal down the line.
Enhance email campaigns.
You need to personalize emails and leverage automated drip campaigns for your prospects and clients. Why?
According to studies, personalized subject lines in emails can generate 58% higher open rates. Many other partners, resellers, and agencies sell directly to their customers.
But many of your prospects could easily forget about your offerings after the trial period.
The Final Note
The SaaS sector is highly competitive, and marketing requires a multi-faceted strategy. It's critical to use the best SaaS marketing techniques to stay ahead of the curve as a SaaS business owner.
Invest in your email and content marketing efforts, create referral programs, use ads to increase brand awareness, and don't forget to nurture your leads.
Are you looking for ways to market saas products effectively?
AI bees develop marketing and sales plans for Saas solutions companies by conducting market research. Contact us to learn more.