What is SaaS marketing and How is it Different?
SaaS marketing is a type of marketing that promotes and advertises a software as a service product. This on the surface doesn’t seem like it should be different from regular marketing strategies, but the difference in SaaS products is that they aren’t tangible. They are services that are digital in nature.
Thus, your marketing efforts need to stand out amongst all the other SaaS products to attract new customers who will stay signed up to your service for long periods of time. Thus, marketers have to be creative when they advertise a SaaS product. Because these are digital products, they can be very complex with lots of different features that can solve many problems for your clients.
But your advertisement shouldn’t be long and drawn out explaining every single thing your service offers, instead, it should be simple and memorable, with enough information for your target audience to know that the service will be able to solve their problem.
SaaS stands for Software as a Service. It is a software delivery model in which a software application is hosted by a third-party provider and made available to customers over the internet. SaaS applications can be accessed and used by multiple customers remotely through a web browser or mobile app. This eliminates the need for customers to install, maintain and update the software on their own servers or devices, which can be a costly and time-consuming process. Examples of SaaS products include email services, customer relationship management (CRM) software, human resources management systems (HRMS), and project management tools. If you’re selling a service compared to a product you might be wondering if marketing it is different from marketing a physical product. So that brings the question of what is SaaS marketing.
Who buys SaaS?
The typical customers of SaaS are B2B and B2C. So, your marketing strategy is directed at business decision-makers and consumers. SaaS companies have to worry about churn, this is the rate at which current customers cancel their subscriptions, so if you have more churn, you have less revenue.
How to Reduce Churn?
To optimize customer retention in the SaaS industry, it is crucial to have a well-crafted strategy in place that can effectively engage and retain customers for a long period of time. Once you acquire a customer, it is essential to keep them hooked to your product, or else they may switch to a competitor’s SaaS offering that is more appealing.
Enhance customer onboarding and education: Offer a comprehensive onboarding and training program to ensure customers can fully understand and utilize the capabilities of your product. By incorporating the following best practices into your SaaS marketing strategy, you can effectively reduce churn and keep your customers engaged and satisfied with your product for the long haul.
Top 10 Best Practices to Reduce SaaS Churn
Improve Customer Support: Provide customers with prompt and effective customer support.
Conduct Regular Check-ins with Customers: Keep in touch with customers on a consistent basis to obtain feedback and address any concerns they may have.
Address Customer Pain Points: Analyze common reasons for customer churn and take appropriate measures to improve your product or service accordingly.
Keep Customers Informed: Communicate with your customers to keep them up-to-date on product features, updates, and modifications.
Personalize your approach: Customize your interactions with customers to suit their specific requirements and preferences.
Reward customer loyalty: Create customer loyalty programs and incentives to motivate customers to stick with your product.
Use Data to Predict Churn: Leverage customer data to identify early warning signs of potential customer churn and proactively address those issues.
Implement a Net Promoter Score (NPS) Survey: Use NPS surveys to determine customer satisfaction levels and identify areas that require improvement.
Continuously Enhance Your SaaS Product: Keep refining your product by adding new features and enhancements to ensure it stays relevant and competitive in the market.
How to Combat Competition?
The SaaS product market is jam-packed with numerous programs and services, making it challenging to stand out from the competition. You must first comprehend your company’s branding and business model. After that, you need to come up with interactive and engaging content that reflects your brand’s messaging. The more distinctive and dissimilar you appear from other companies, the higher the likelihood of standing out from your competitors. But don’t get too complacent! It’s an ongoing battle to keep your brand relevant and unique in a constantly evolving market.
How Does Pricing Affect SaaS Marketing?
Pricing allows companies to be competitive. SaaS companies often utilize tiered pricing structures to lure in their customers. For a set price you can get the basic functions, but often they promise you more functions and enhanced features if you pay more money. Some also structure pricing so if you buy the more expensive product the customer pays less than if they paid for only one month of service at a time.
Yet the pricing also needs to be clear, if a customer can’t find a price for what they are considering buying it makes them more likely to cross that SaaS service off the list in place of another one that has clear pricing information.
Strategies for Marketing SaaS Products?
Well, let me tell you, it’s a multifaceted task that requires careful planning and execution. The two primary features of a SaaS marketing strategy are intricately intertwined and interdependent. Firstly, the inflow of traffic to your website is paramount, and organic traffic is highly preferred. Secondly, you need to exhibit your service in a manner that is not just effective, but rather compelling to the customers, prompting them to purchase your service. It’s not just about having a service but showcasing it effectively, highlighting its unique selling points, and demonstrating its superiority over the competition. Only then can you stand out in the highly saturated market and capture the attention of potential customers.
How do you Generate More Traffic to your SaaS Website?
There are several ways to get more people to your site, from using SEO, investing in PPC, or even using content marketing.
SEO, otherwise known as Search Engine Optimization, is a common marketing tactic, but just because it is common doesn’t mean it isn’t beneficial, using SEO work is the key to any good marketing strategy. At its most basic, SEO is getting your site to appear higher on search results. The higher it is, the more traffic you’ll get.
PPC, otherwise known as Pay Per Click, is an advertising method in which you set a bid price, and for every click on your ad, you pay that amount of money. This goes hand in hand with other marketing strategies in order to bring in more traffic for your website. Of course, with PPC you need to be sure you are retaining the people who click on your ad, it’s a waste if lots of people are clicking on the ad, but none are actually buying your service.
Content marketing is another way to generate traffic for SaaS websites. This strategy requires creating content for your site that aligns with the interests of your target demographic, if you had a game development SaaS service, you would create content around games and game development. The content you create would also help by including keywords that bring in people from search results.
How to Show off Your Service?
Now that you have a few ideas for how to bring people in, how do you keep them and have them buy your service? To bring in people you can use several methods, including Offer Free Trials, Easy Sign up, and Deals & Discounts.
Having a complicated signup isn’t good, once you’ve drawn someone to your site you need to make it easy and simple to sign up. If it’s complicated or takes a long time, the person is going to abandon the signup because it requires so much effort.
With physical products, companies wouldn’t give away a free product to people, but for SaaS marketing, it is a crucial factor, because giving them a period of time to use and like your product makes them more likely to buy it. Some companies even have complete free versions, but with no access to the more advanced features, it gives people a hands-on opportunity and to see what they are missing out on by not having the full version.
Deals & Discounts
This is another important part of a SaaS strategy, a discount can get a person to try the more advanced features and like them, which is good for convincing a hesitant person to spend more money for the full service. Be careful not to advertise too many deals and discounts on the regular, or people will come to expect these prices rather than be willing to pay full price.
In the realm of SaaS marketing, the strategies to draw customers to your service go beyond those of traditional marketing. However, the goal is still the same – to attract customers and entice them to purchase your product. Here are the top ten techniques that have been tested and proven effective for promoting your SaaS service offline:
Word of Mouth: Encourage satisfied customers to spread the word about your service to their friends and colleagues.
- Trade Shows and Events: Attend industry-specific trade shows and events to network and showcase your service.
- Public Speaking Engagements: Offer to speak at industry conferences or events to increase awareness of your service.
- Print Advertising: Utilize print media such as magazines and newspapers to advertise your service.
- Direct Mail: Send brochures or other promotional materials through direct mail to potential customers.
- Cold Calling: Reach out to potential customers by phone to introduce them to your service.
- Referral Programs: Provide incentives for existing customers to refer new customers to your service.
- Networking: Attend industry networking events to connect with potential customers.
- Sales Teams: Hire a sales team to approach potential customers and promote your service.
- In-person Demos: Offer in-person demonstrations of your service to potential customers to give them a hands-on experience of its capabilities.
SaaS Marketing Takeaway
Are you looking for ways to improve your SaaS business marketing but unsure where to start? We understand that every business is unique, and that’s why we’re offering a complimentary consultation to help you identify areas for improvement. During this consultation, one of our experts will take the time to understand your specific needs and provide tailored recommendations for how our fractional CMO service can help. There’s no obligation and no pressure – just valuable insights and expert advice. Book your free consultation today and start taking the first step towards a more efficient and successful business.
Hiring a Part Time CMO can be a good option for companies that need marketing leadership but don’t have the resources or need for a full-time CMO. Please Contact Us if you would like a Free Consultation with an Experienced Chief Marketing Officer.