Software as a service (SaaS) has proven to be a profitable and fast-growing industry. In 2021, estimates show that the SaaS market was worth 145.5 billion US dollars. Researchers expect the market to grow even more as more businesses adopt SaaS for their daily operations.
Launching a SaaS product is no easy feat. A lot of time and hard work goes into it, and you’d want your customer base to see that. This is why you need a solid understanding of the market and an effective marketing strategy.
What Sets SaaS Marketing Apart?
To market your SaaS product better, you need a thorough understanding of the industry. The SaaS market has quite a few differences from others, which will affect your strategy.
Below are some of the key points that set SaaS marketing apart.
The typical customers for SaaS products are often B2B and B2C customers. This fact alone would make a significant impact on your marketing strategy.
Instead of targeting the average consumer, you need to identify company decision-makers. This will require a more personalized and intentional approach.
Most SaaS companies also rely on long-term customer retention. You’d want less customer churn, which is the rate at which you lose customers. Research shows that the average SaaS customer churn is at 4.79%. The priority is to keep this number low and existing customers engaged.
The type of customers SaaS products attract will also affect the customer journey. Compared to other industries, SaaS products often have a longer customer journey. This point is especially true for those who provide business solutions.o
Customers would often ask for trial periods and consultations with your company. This process helps them ensure that your product would fit their existing workflow.
There is no one-size-fits-all strategy for SaaS products. You must know your customer base well, and each one of them can be significantly different. Understanding the customer journey helps you craft a strategy that suits their needs.
SaaS is a highly saturated market, no matter your niche. The United States had approximately 15,000 SaaS companies in 2021, which landed them the top spot. The United Kingdom with 2,000 companies was in second place. You can also look at the SaaS 1000 for each year’s top contenders.
This landscape can make it difficult to stand out, so good marketing is critical.
You need to have a solid brand identity and a unique, helpful service. This is a great starting-off point for an effective marketing campaign.
Points to Improve Your Marketing Strategy
You need a solid Saas marketing plan to carry out an effective marketing campaign. Planning will help you become more intentional and attract your desired customers. Here is a handful of ideas you might like to explore for your next campaign.
Utilize Email Marketing
Email marketing might seem a little old-school in today’s social media-focused world. But, it still is effective, especially considering the unique SaaS customer journey.
Emails help provide frequent and personalized interactions that maintain customer interest. SaaS’ longer customer journey will benefit from such an approach.
Here are a few of the types of emails you can send your customers:
- Welcome/onboarding emails
- Event announcements/invitations
- New features or product offers
Regular emails can give your customer base a quick nudge to use your product and see what you have to offer.
Work on Your SEO
It’s a common practice for customers to research before making any purchase. This practice becomes necessary for business purchases, which need more rigorous accountability.
Organic search still remains the top source of traffic (77%) for SaaS businesses. This is why search engine optimization is necessary for your SaaS business. With people consulting search engines for major purchases, your brand needs visibility.
You need to learn how to tailor your website to help it rank highly in search engine results. SEO has several factors, such as keywords, quality content, web design, and link-building. It’s ideal to have someone on your team focus on your SEO efforts.
Create Social Media Buzz
Social media has become the most prominent marketing platform for any business. Here, you can generate organic hype for your product and interact with customers. Facebook, Instagram, Twitter, and Reddit are popular choices for software marketing.
Make sure you play to the dynamics of the platform you choose. For example, Reddit values authentic interactions, so straightforward promotion would not work well. Instead, go for sharing valuable, long-form content with a personal voice.
Social media is a place for conversation, so make sure to interact and reply to any comments you may get. It’s also ideal for you to maintain a consistent presence through regular posts.
Share Your Expertise
As a SaaS business, you offer a service and solution to existing issues. Your product required extensive knowledge to create. You can use that knowledge in your marketing.
One way to do this is by posting videos and tutorials for your product. This gives potential customers a first look at what your software can do and attract them towards it.
Another way is by hosting webinars about relevant issues that your customers face. You will be addressing a need, which your software can help resolve.
Showing your company’s expertise in your niche establishes you as an authority. Customers are likely to trust someone who knows what they’re doing.
Offer Free Stuff
Consider giving free trials for your product or even offering it at a freemium. This model gives customers the chance to experience your product for themselves.
The trial or freemium period also opens up the conversation between you and the customer. You can answer questions and help them integrate your software with their processes.
Offering some of your services for free would also generate buzz around your product. When done well, these free users would transition into paying customers.
As with any industry, the SaaS market is constantly evolving. A lot of factors will influence your performance in such a competitive field. To succeed, make sure to know your customers, address their needs, and provide a quality product.
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