At a Glance
The increasing competition in the SaaS market has made the task of marketing a challenge for the product developers. It is therefore essential for any SaaS enterprise to have a well-defined marketing plan in place to achieve the desired targets.
When you’re trying to make an important decision, and you’re sort of divided on the issue, ask yourself: If the customer were here, what would she say?Dharmesh Shah, Co-founder, HubSpot
To prepare an efficient SaaS marketing plan, the entrepreneurs need to focus on several key aspects of the SaaS marketing process.
SaaS product marketing is a rather tricky proposition in the almost saturated market of today. Whether in-house or an external group of highly qualified marketing strategists, your marketing team should set your company apart from the competitors. But, with almost similar SaaS products on the market, how to do so?
The SaaS marketing process, no matter how much effort you put into propelling the sales, always lies in good SaaS marketing strategies. You do not have to focus on continuously pitching products to a large number of audiences; rather, curate a marketing guide that will automatically spread the word from mouth-to-mouth. So, first, you need an excellent marketing strategy, and then you need a compatible team for its implementation. In this article, we will speak about an elaborate SaaS marketing guide to help you build a strong and impactful SaaS marketing strategy.
SaaS marketing strategy: From Fundamentals To The Advanced Tips
Fundamentals of SaaS marketing process
The fundamentals of SaaS marketing can be divided into four parts.
1. The SaaS Flywheel
The first stage of the SaaS Flywheel is to attract potential customers to your website. You should track the website visit, the bounce rate, and the conversion rate. Once you have attracted your customers, engage them through email marketing, content offers, etc. The third step is close, where one needs to track the Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV). The last step is a delight where you want to make your customers feel like a valuable part of your company. You can upgrade the subscription model, conduct a survey, engage with your customers in this step.
2. A strong SaaS branding message
For creating a strong branding message for your SaaS product, know your customers well. While reading the brand message, your audience should feel related or like they were just waiting for this solution for a long time. Make your branding message with a personal touch where you share stories about your founders or successful customers who use your product. Try to make the message sound more like a conversation using words like “you” and “we.”
3. The software you are using
If you have a SaaS business, using versatile software is the key to make your marketing process smooth. You need more than just one platform or software for various marketing prospects like email marketing, sales, advertising, website content managing, etc. You can try using software like HubSpot, Marketo, MailChimp, for different purposes of the SaaS marketing process.
4. A visually alluring website
Don’t forget to add three main things to your website.
1. A subscription option to your blogs and newsletters.
2. A live chat option for real-time engagement
3. Highlighting specific products and free trial offers.
Generating Traffic for SaaS marketing process
For increasing traffic on your website, almost all SaaS businesses use Search Engine Optimization (SEO). Identify the topic clusters for your audience and write engaging blogs on related topics. A quality blog will always subtly introduce your brand to bring more potential customers to your website. Ensure that you maintain consistency at posting quality content, and ask your team members and employees to share these from their social accounts. This tip also includes online advertising like pay per click, video ads, etc. to spread more words about your brand.
The Freemium model is one of the most commonly used strategies by SaaS companies. For lead generation, you should give your audience a free version of your product that can be used by everyone. And, at some point, they will subscribe to enjoy the exclusive features of your premium model. Depending on your product type and users, you should also include free trials for your customers. Introduce free blogs, newsletters, and webinars to acknowledge your customers’ pain points even if they do not sign up for the freemium model or free trial.
Lead scoring and nurturing
You cannot expect your customers to jump from the free model to the premium model immediately because they do not. Ask yourself how many times you deleted your account from the software after the free trial is over? But, when it comes to your SaaS marketing, you need to nurture the lead for potential conversion rate. Include an in-app guide like message pop-ups to introduce your users to new features or help them find any sections of the app. Email marketing is a common way of lead nurturing. Keep your customers updated about everything you are doing for them. Send them links to your blogs, your e-resources site, major events, and webinars.
Contact segmentation followed by lead scoring is very crucial for proper SaaS marketing. You need to gather data to know the duration of time one person is spending on your website, what are they reading, are they interested only about the blogs, or they are comparing your products with other competitors, how many of them are switching from free to premium version, how many of them sign up for newsletters, etc. By analyzing the lead scoring, one can anticipate the potential subscription levels and assign the leads to the salesperson. Contact segmentation is required to reach out to different segments of your customer base through a different approach.
Impressing your customers
One of the important jobs of your marketing team is to engage with your customers and impress them to increase the Customer Lifetime Value (CLTV). Always maintain a positive curve for the ratio of CLTV to CAC. For proper customer engagement, make sure email marketing is regular for both your subscribers and all customers, in-app guide, sharing customer stories on your website, introducing a free certification program for a training and educational website, rich infographics in your website, etc. Many SaaS companies also use a third-party platform for providing chat, email support to their customers. This technique is known as “omnichannel support.”
Managing your budget
Reports show that most of the companies spend only 7%-10% of their gross annual revenue on marketing. But, for a SaaS business, one must spend way more than that. Most successful SaaS businesses spend a minimum of 40% of their gross revenue on marketing, and yes, that is important. For a SaaS business, you are building each resource from scratch. From branding your website to creating every web content needs huge resources. So, one should invest around 40% – 50% of their revenue for marketing. For example, ServiceNow spent 44% of its revenue on marketing from $3.46 billion in 2019.
All the big successful SaaS companies have gone through these phases of marketing to establish a successful SaaS business, and it is time for you to get to work as well. So, get your team together and chalk out your strategy to “world domination”.