What is SaaS Marketing? The Only Guide You’ll Ever Need
Software-as-a-service (SaaS) marketing is the promotion of software products and services delivered over the internet. Because SaaS products are delivered via the web, they can be marketed to a global audience with ease.
But in order to successfully market a SaaS product, it is essential to have a solid understanding of the target audience and their needs. Additionally, SaaS marketers must be able to effectively communicate the value of the product or service in order to convert prospects into paying customers.
While there are many challenges involved in SaaS marketing, those who are able to overcome them can enjoy great success. In this blog post, we will discuss what SaaS marketing is and how you can use it to grow your business. We will also provide a comprehensive guide on how to get started with SaaS marketing. Keep reading to learn more!
Why is SaaS marketing different from other types of marketing?
As the software-as-a-service (SaaS) industry has grown, so has the need for specialized marketing expertise. SaaS marketing is different from other types of marketing in a number of important ways.
First, SaaS products are usually subscription-based, which means that customers must be actively engaged in order to continue using the service. This creates a need for ongoing customer acquisition and retention efforts. Second, SaaS products are typically delivered online, which makes it important to have a strong digital marketing strategy.
Finally, SaaS products often have complex pricing models, which can make it challenging to develop an effective pricing strategy. Because of these challenges, businesses that are new to the industry often find it helpful to work with SaaS marketing agencies to gain traction.
How do you market a SaaS solution?
When it comes to marketing a SaaS solution, the most important thing is to focus on the benefits that your product offers. Potential customers are looking for a solution to their problem, not just another piece of software.
Your marketing efforts should be focused on highlighting how your product can solve the customer’s pain points. It is also important to establish credibility with potential customers. After all, they are trusting you with their data and their business operations. Therefore, you need to show them that you are a reliable and trustworthy provider.
It is also important to make sure that your pricing is competitive. There are a lot of options out there, and customers will not be hesitant to switch if they feel like they are overpaying.
Proven SaaS marketing strategies that will bring in massive growth
1. Develop a buyer persona
If you’re looking to take your SaaS business to the next level with SaaS marketing, you need to start with your customers.
Who are they? What do they need? What are their biggest pain points?
Once you have developed a buyer persona and have a good understanding of your customer base, you can start to create targeted marketing campaigns that speak directly to their needs. This will not only help you to attract more customers, but it will also ensure that those customers are more likely to stick around.
In addition to understanding your customers, it’s also important to keep up with the latest trends in the SaaS industry. What new technologies are being used? What new features are becoming popular?
By staying on top of the latest trends, you can position your business as an innovation leader and make sure that your marketing campaigns are always fresh and relevant.
Understand the customer journey
SaaS businesses also need to have a solid understanding of their customer journey in order to create marketing strategies that will be effective in bringing in new customers and driving massive growth.
The customer journey refers to the different stages that a potential customer goes through when considering and eventually purchasing a new product or service. In order to create an effective SaaS marketing strategy, businesses need to identify what each stage looks like for their specific target audience.
Only then can they create content and messages that resonate with shoppers at each stage of the journey and convinces them to take the next step.
2. Competitive analysis
As a SaaS company, it’s important to stay ahead of the competition. One way to do this is by conducting a competitive analysis. This will help you understand what your competitors are doing well, and where they could improve. By understanding your competition, you can emulate their successes, avoid their mistakes, and make sure that your own SaaS marketing strategies are as effective as possible.
Here are a few tips for conducting a competitive analysis:
Identify your competitors — This may seem obvious, but it’s important to know who you’re up against. Make a list of all the companies that offer similar products or services to yours.
Research their marketing strategies — Once you know who your competitors are, it’s time to start digging into their marketing initiatives. Visit their websites, read their blog posts, and follow them on social media. See what they’re doing to reach their target audience, and try to identify any gaps in their strategies.
Analyze their strengths and weaknesses — Once you have a good understanding of your competitor’s SaaS marketing strategies, it’s time to start analyzing their strengths and weaknesses. Which of their campaigns have high engagement? Which seem unremarkable? How can you outperform their weaknesses and make sure that your own marketing efforts are more effective?
Conducting a competitive analysis can help make sure that your SaaS business is always one step ahead of the competition.
3. Create topical authority with content marketing
One of the best ways to bring in massive growth with your company is to create topical authority with content marketing. This means creating content that establishes you and your company as experts in your industry.
There are a few key ways to do this. First, you need to make sure that your content is well researched and informative. It should offer value to your readers and help them to understand your industry better.
Secondly, you need to ensure that your content is shareable and widely distributed. This means publishing it on high-quality websites and making sure that it is easy for readers to share on social media.
Finally, you need to make sure that your content marketing strategy is always up-to-date. This will show that you are keeping on top of industry trends and that you are always able to provide the most valuable information to your readers.
Including content marketing in your marketing strategy can help establish your brand as a leading authority in your industry, resulting in massive growth.
4. Product demos and trials
When it comes to SaaS marketing, one of the most common strategies is to offer demos or free trials. This allows potential customers to see the value of your product and how it can benefit them, without having to make a financial commitment.
Not only does this help to build trust and confidence, but it also gives people a chance to get a taste of what your product has to offer. In order to maximize the impact of this strategy, it’s important to make sure that your demo or trial is as user-friendly and intuitive as possible. After all, you want potential customers to be able to see the value of your product right away.
Taking the time to ensure a smooth and positive experience, you’ll be well on your way to driving massive growth for your business.
5. Email marketing
Email marketing is one of the most effective SaaS marketing strategies to reach out to potential customers and keep existing customers engaged. However, email marketing is not a one-size-fits-all solution — you need to tailor your approach to fit your target audience.
Here are five email marketing strategies that have been proven to drive growth for SaaS companies:
Segmentation: Make sure you are sending relevant content to your different customer segments. This will help to ensure that your messages are well-received and decrease the likelihood of unsubscribes.
Timing: Timing is everything when it comes to email marketing. Experiment with different times of day and days of the week to find out when your emails are most likely to be opened and read.
Personalization: Add a personal touch to your emails by addressing the recipient by name or using other personalization techniques. This will make your emails stand out in a crowded inbox and show that you value your customers.
A/B testing: Test different subject lines, calls to action, or other elements of your email campaigns to see what works best with your audience. This data-driven approach will help you maximize the effectiveness of your email marketing.
Engagement: Keep your customers engaged by sending interesting and informative content. You can also encourage engagement by running competitions or offering discounts.
6. Paid Advertising
Paid advertising is another highly effective way to generate leads quickly for SaaS companies.
When done correctly, paid ads can bring in a consistent flow of high-quality leads that are ready to convert. However, paid advertising can be a very expensive SaaS marketing strategy, and it requires a lot of ongoing testing and optimization to be successful.
In order to maximize your return on investment, you need to have a clear understanding of your target market and what type of keywords they are searching for. You also need to bid on the right keywords and create ad copy that is relevant and compelling.
Social media marketing and ads
As the world becomes increasingly digital, more and more companies are turning to social media to reach their target audiences.
Among all the social networks out there, Facebook is one of the most popular choices for advertising. That’s because Facebook offers a highly targeted ad platform that allows businesses to reach their ideal customers with laser precision.
If you’re a SaaS company looking to get started with Facebook advertising, make sure your ads are relevant and targeted to your audience. The more relevant your ads are, the more likely people are to click on them.
Secondly, use strong visuals in your ads. Facebook is a very visual platform, so using high-quality images or videos in your ads will help them stand out from the crowd.
Don’t forget to include a call to action in your ads as well. Without a call to action, people may be less likely to take the next step and sign up for your service.
Google pay-per-click ads
Google ads can be a great way for SaaS companies to reach their target audience. With pay-per-click ads, you only pay when someone clicks on your ad, making it a cost-effective way to reach potential customers.
You can also target your ads to specific keywords and demographics, ensuring that your ad is seen by people who are most likely to be interested in your product or service. While there is no guaranteed formula for success, following some best practices can help you get the most out of your Google pay-per-click campaign.
- First, make sure that your ad is relevant to the keywords you are targeting.
- Second, create a strong call to action that will encourage people to click on your ad and essentially buy from your landing page.
- Finally, track your results and adjust your campaign accordingly.
If you can master these elements of paid advertising, you will be well on your way to generating massive growth for your SaaS company.
As a SaaS company, one of your main goals is to reach potential customers through search engines. After all, what good is having a great product if no one knows it exists?
That’s where SEO comes in.
SEO, or search engine optimization, is the process of making your website more visible to search engines. It involves optimizing your site structure, content, and keywords so that when people search for terms related to your business, your website appears as high up in the results as possible.
SEO can be a complex and time-consuming process, but it’s essential for driving traffic to your site. Fortunately, our team is always available to help come up with a custom SEO strategy that can help you get started.
With a little effort, we can make sure that your SaaS company gets the visibility it deserves.
8. Referrals and giveaways
Referrals and giveaways are both great SaaS marketing strategies for many brands.
Referral marketing helps to promote word-of-mouth marketing, which can be extremely valuable for small businesses. Meanwhile, giveaways can help to increase brand awareness and drive traffic to your website or social media platforms. Both of these strategies can be highly effective in driving massive growth for your business.
However, it is important to implement them in a way that aligns with your overall marketing strategy. For example, you may want to consider offering a discount or free trial in exchange for referrals.
You could also run a giveaway on your social media platforms in order to increase engagement and followers. Giveaways are a popular marketing tactic, and for good reason — they work. People love free stuff, and if you can find a way to give away products or services related to your business, you’ll see a big uptick in growth.
Of course, giveaways can be a bit of a gamble — you don’t want to give away too much, or you won’t see a return on your investment. But if done right, giveaways can be a powerful tool for driving massive growth.
Here are a few tips to make sure your giveaway is a success:
- Make sure the prize is something people actually want. Ideally, it should be something related to your business or product so that people see the value in what you’re offering.
- Promote your giveaway heavily across all channels — social media, email, ads, etc. You want as many people to see it as possible.
- Set rules and restrictions so that only people who are truly interested will enter. This will help to ensure that you get quality leads who are more likely to convert into customers.
- Choose a winner at random to create a sense of fairness and excitement. Announce the winner publicly so everyone knows that there’s an equal chance of winning.
9. Partnerships with influencers
In a world where word-of-mouth is still the strongest marketing tool there is, partnerships with influencers can be a game-changer for your business.
By teaming up with an influencer who has a large and engaged following, you can get your product in front of thousands of potential new customers. If you partner with the right influencer, you can also benefit from their valuable insights and expertise.
When choosing an influencer to partner with, it’s important to make sure that their values align with your brand. You’ll also want to consider the size and engagement of their audience, as well as their ability to generate meaningful leads.
Once you’ve found the perfect partner, it’s time to start working on creating content that will resonate with their followers. Keep in mind that authenticity is key — no one wants to be sold to, but everyone loves a good recommendation from a trusted source.
If you can create content that is both informative and entertaining, you’ll be well on your way to generating significant growth for your business.
10. Customer testimonials and reviews
In the world of SaaS marketing, customer testimonials and reviews are essential.
Because they provide social proof that your product is effective and that other people are using it successfully. Social proof can help to build trust and credibility with potential customers.
There are a few different ways to incorporate customer testimonials and reviews into your marketing strategy. For example, you could create a dedicated page on your website where customers can leave their feedback.
Alternatively, you could include customer quotes in your marketing materials or even create video testimonials.
Whichever approach you choose, make sure that you are featuring genuine feedback from satisfied customers. Utilizing customer testimonials in your SaaS marketing strategy can help you to attract more attention from potential leads and convert them into paying customers.
11. Outbound marketing and sales
Most SaaS marketers focus on inbound strategies like SEO and content marketing to bring in new leads. While these strategies are important, they shouldn’t be the only ones you rely on. Outbound marketing and sales can also be powerful tools for driving growth.
Here are a few outbound marketing and sales strategies that have been proven to be effective:
Targeted emails: Sending highly personalized emails to targeted lists of potential customers can be an effective way to generate interest and get your foot in the door.
LinkedIn InMail: LinkedIn InMail is a paid messaging service that allows you to reach out to prospects who are not already connected to you on the site.
Cold calling: Despite its reputation, cold calling can still be an effective way to reach new potential customers, especially if you target businesses that are a good fit for your product.
Events and tradeshows: Attending industry events and tradeshows can help you make valuable connections with potential customers.
All of these strategies can be effective ways to reach new potential customers and drive growth for your business. However, it’s important to keep in mind that outbound sales require a significant investment of time and resources. As such, they should be used in combination with other marketing strategies, such as inbound marketing and content marketing.
How is the success of a SaaS product measured?
A SaaS product is successful if it is able to meet the needs of its target market. This can be measured in terms of the number of users, monthly recurring revenue, customer churn rate, and customer satisfaction.
Here are the primary SaaS marketing metrics to track in your marketing campaign, in order to get a good idea of how successful your product is.
Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV) is a metric that a SaaS business should use to measure the financial value of their customer relationships.
To calculate CLTV, businesses first need to determine the average revenue per customer and then multiply that figure by the average lifetime of a customer relationship. For example, if the average revenue per customer per year is $100 and the average customer relationship lasts for two years, then the CLTV would be $200.
The CLTV metric is important because it provides businesses with a way to measure the long-term value of their customer relationships. By understanding CLTV, businesses can make informed decisions about marketing and sales strategies, product development, and other areas that impact the bottom line.
Additionally, CLTV can be used to benchmark performance against competitors and identify opportunities for improvement.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the amount of money that a company spends in order to acquire a new customer. This can include marketing and sales costs, as well as any other costs associated with persuading a potential customer to sign up for a company’s product or service.
In the world of SaaS, CAC is an important metric to track, as it can give insights into how much it costs to acquire new customers and whether or not a company is achieving a positive return on investment (ROI).
To calculate CAC, simply divide the total cost of acquisition by the number of new customers acquired. For example, if it cost $100,000 to acquire 100 new customers, then the CAC would be $1,000. While there is no single “correct” CAC number, companies generally strive to keep their CAC as low as possible in order to remain profitable.
The Customer Acquisition Cost to Lifetime Value (CAC: LTV) ratio is a metric used by businesses to measure the efficiency of their customer acquisition efforts.
To calculate the ratio, divide the total cost of acquiring a customer by the lifetime value of that customer. The resulting number provides insight into how much each new customer costs, on average, and how much revenue they generate over the course of their relationship with the company.
A high CAC: LTV ratio indicates that a company is spending more than it should to acquire customers, while a low ratio suggests that acquisitions are not generating enough revenue. The ideal CAC: LTV ratio depends on a variety of factors, including the type of business and the nature of its customers.
We’ve seen that a ratio below 3:1 is generally considered healthy.
Monthly Recurring Revenue (MRR)
Monthly recurring revenue, also known as MRR, is a key metric for SaaS companies that represents the revenue that a company can expect to receive on a monthly basis from its current customer base.
MRR is typically calculated by dividing a company’s total recurring revenue by its number of customers. This metric is important because it provides insight into a company’s growth potential and its ability to generate long-term value.
Additionally, MRR is a useful tool for forecasting future revenue and assessing the health of a company’s business model.
To calculate MRR, simply take your company’s total recurring revenue and divide it by the number of customers you have. (you can find your recurring revenue figure by looking at your subscription invoices). Then, take that number and divide it by 12 to get your monthly recurring revenue.
So, if your company has $100,000 in recurring revenue and 1,000 customers, your MRR would be $8,333 ($100,000 / 1,000 / 12).
The churn rate is the percentage of customers that cancel their subscription to a service in a given period of time.
For example, if a company has a churn rate of 5%, that means that 5% of its customers cancel their subscriptions in any given month. Churn rates are an important metric for SaaS companies, especially those that rely on subscription revenues because they can indicate whether a company is sustainable in the long term.
High churn rates can be a sign that a company is overcharging for its services or providing poor customer support for its users. In either case, high churn rates can lead to a lower MRR for SaaS companies.
Therefore, it is important to track your churn rates in your SaaS marketing strategy and take steps to reduce them.
Lead Velocity Rate (LVR)
Lead velocity rate (LVR) is a metric used to measure the speed at which a company is acquiring new leads. In other words, it’s a measure of how quickly a company is growing its customer base.
LVR is a key metric to watch in your SaaS marketing strategy, as it can be used to track growth and predict future revenue. To calculate LVR, you simply divide the number of new leads by the number of customers at the end of the period.
For example, if a company has 100 new leads in January and 200 customers at the end of the month, its LVR would be 0.5. The higher the LVR, the faster the company is growing. Companies with high LVRs are typically considered to be in a high-growth phase.
Lead-to-Customer rate (L2C)
Lead-to-Customer rate (L2C) is a metric used to track the number of leads that become paying customers over a given period of time.
So, if a software company generates 100 leads in January and 10 of those leads become customers, the company’s L2C rate would be 10%. L2C provides insights into sales efficiency and customer acquisition costs.
Additionally, L2C can be used to track the effectiveness of marketing campaigns and other lead generation activities. By monitoring L2C over time, SaaS businesses can make necessary adjustments to ensure that they are generating quality leads that are likely to convert into paying customers.
Trial-to-Customer rate (TTC)
In a SaaS marketing campaign, the Trial-to-Customer rate (TTC) is the percentage of free-trial users who ultimately become paying customers. This metric is important to track in your SaaS marketing strategy because it indicates how well the company is converting free-trial users into paying customers.
While there are many factors that can influence the TTC, some common strategies for improving conversion rates include offering discounts or incentives for signing up for a paid subscription, providing more personalized support during the free trial period, and simplifying the pricing structure to make it easier to understand.
By monitoring the TTC and continually working to improve conversion rates, companies can increase their revenues and ensure long-term growth.
Examples of great SaaS marketing campaigns to inspire you
Monday.com is a software company that specializes in collaboration and project management tools. Founded in 2012, the company has seen significant growth in recent years and is now one of the most popular productivity platforms on the market.
A big part of Monday.com’s success is due to its clever marketing strategy. The company has invested heavily in promoting its brand and its products through social media and influencer marketing.
This has helped to raise awareness of Monday.com and its offerings, driving more traffic to the company’s website and convincing more people to sign up for its services.
Additionally, Monday.com offers a free trial of its paid plans, which has helped to increase conversion rates. Overall, Monday.com’s SaaS marketing success has been highly effective in driving growth for the company.
Canva is a design platform that enables anyone to create beautiful visuals. The company has seen tremendous growth since its launch in 2013, with over 15 million users now creating over 1 billion designs each month. Canva’s marketing strategy has been a key driver of this growth.
The company has invested heavily in online advertising, particularly on Google and Facebook. Additionally, Canva has developed a strong content marketing strategy, producing design tutorials and articles that have been widely shared across social media. As a result of these efforts, Canva has become one of the most popular design platforms in the world.
Slack is a messaging app for businesses that has seen significant growth in recent years. Slack’s success can be attributed to its effective marketing strategy, which has focused on creating a strong brand identity and building an engaged user base.
Slack’s branding is built around the idea of “simple communication for complex work.” This positioning has helped it to appeal to a wide range of users, from small businesses to large enterprises.
Wistia is a video hosting company that was founded in 2006. The company has a strong focus on customer service and providing a great user experience. In addition, Wistia has an innovative marketing strategy that has helped it to grow rapidly.
One key element of their SaaS marketing strategy is creating helpful and entertaining content that is relevant to their target audience. For example, they have a video series called “The Wistia Guide to…” which covers topics such as video production, social media marketing, and email marketing.
In addition to creating helpful content, Wistia also uses data-driven decision-making to improve their marketing efforts. For example, they regularly analyze their website traffic data to identify opportunities for improvement.
As a result of their innovative marketing strategy, Wistia has become one of the leading video hosting companies.
In recent years, Dropbox has employed a number of different marketing strategies in an effort to promote growth. One such strategy has been to offer free storage space to users who refer others to the service. This tactic has been successful in attracting new users, as well as encouraging existing users to remain active on the platform.
Dropbox has also invested heavily in online advertising, targeting both individuals and businesses.
The company has also formed partnerships with a number of high-profile companies, such as Microsoft and Apple, in order to make its products more accessible to a wider audience. As a result of these efforts, Dropbox has seen significant growth in both its user base and its revenue.
So there you have it — SaaS marketing in a nutshell. We hope this guide has been helpful and given you some ideas for how to get started with your own SaaS marketing plan.
If you’re looking for more help with your SaaS marketing, don’t hesitate to reach out to our digital marketing team. We would be happy to book a call and chat about your specific needs so we can create a plan that works best for you!