With competition becoming fiercer by the day, you can’t afford to get your SaaS marketing wrong. So, if you’re wondering how SaaS marketing differs from other forms of marketing or you’re looking for the most successful SaaS marketing strategies, then read on as the Loomly Team addresses all of your questions in this SaaS marketing FAQ.
TABLE OF CONTENTS
- What does SaaS mean?
- How do you promote a SaaS company?
- What is SaaS marketing?
- How does SaaS marketing differ from other forms of marketing?
- What is the difference between SaaS marketing and customer success?
- What are the best resources to learn about SaaS marketing?
- Which KPIs are used to measure SaaS marketing performance?
- How to develop a SaaS marketing strategy?
- What are some good examples of successful SaaS marketing strategies?
- What are the main errors to avoid in SaaS marketing?
What does SaaS mean?
SaaS is an acronym of Software as a Service and refers to selling and delivering software and applications via the Internet.
SaaS applications run on the software provider’s servers. So, instead of installing and maintaining software on your computer, the software provider manages and supports access to the application, including security, availability, and performance.
SaaS applications are also known as on-demand software, cloud-based software, web-based software, or hosted software, and can be characterized as:
- Being centrally hosted
- Requiring internet access to use
- Using subscription-based business models
Customers pay a recurring subscription fee to use the products, which are accessed via the Internet.
How do you promote a SaaS company?
Sujan Patel, a partner in several SaaS companies, recommends the following 10 tactics to promote your SaaS business:
- Show how it works.
- Engage with Reddit.
- Create urgency through exclusivity.
- Focus on lead nurturing and retention.
- Give big with referrals.
- Make it free.
- Make it all about the customer.
- Use scarcity content marketing.
- Make a waiting list.
- Ride coattails and integration.
What is SaaS marketing?
SaaS marketing is a type of marketing that focuses explicitly on promoting and acquiring leads for subscription-based SaaS products. SaaS, also known as Software as a Service, is how businesses deliver their software in cloud-based applications and provide regular updates and new functionality.
There are several targeted marketing strategies you can use to achieve the highest conversion rates possible:
- Provide sufficient information for customers to choose the right platform.
- Offer free trial periods.
- Optimize your website for conversions.
- Build a strong presence on social media.
- Get your SaaS product to sell itself.
How does SaaS marketing differ from other forms of marketing?
SaaS marketing is different from virtually every other type of marketing:
- Giving away free stuff is actually a good thing. The “free trial” is a vital marketing strategy for SaaS customer acquisition and onboarding.
- The sales cycle is concise. Unlike a typical B2B 12-month sales cycle, customers find a SaaS solution, see it, like it, and buy it. Done.
- SaaS marketing depends on information. The main job of a SaaS marketer is to provide information that leads to the SaaS product.
- Customer retention is critical to the SaaS industry. According to Gartner, 80% of all future revenue will come from 20% of your current customers.
- You’re not selling a product as much as you are a service. Ensure all aspects of the business — product, support, revenue model, and marketing — are integrated.
- Your goal is to get your SaaS to sell itself. When you provide fantastic products and killer support, the rest of your marketing takes care of itself.
What is the difference between SaaS marketing and customer success?
Previously, software companies could simply sell a product and make a profit. But the SaaS subscription-based model requires customers to keep getting value and satisfaction from the software so that they maintain their subscription.
If customers successfully use your product, they’ll keep using it, and your business will profit.
What are the best resources to learn about SaaS marketing?
Check out the following curated lists of SaaS marketing resources:
- Over 44+ Best SaaS Marketing Resources
- SaaS Marketing: The Definitive Guide with 100+ Resources
- 13 Must-Read Resources for SaaS Marketers
- 46 Top Resources for SaaS Companies – Single Grain’s Link Roundup
Which KPIs are used to measure SaaS marketing performance?
Here are 10 KPIs that every SaaS marketing team should be monitoring and analyzing to perform better:
- Churn Rate
- Revenue Churn
- Monthly Recurring Revenue (MRR)
- Annual recurring revenue (ARR)
- Committed Monthly Recurring Revenue (CMRR)
- Customer Acquisition Cost (CAC)
- Customer Lifetime Value (CLV)
- Lead Velocity Rate (LVR)
- Net promoter score (NPS)
How to develop a SaaS marketing strategy?
Here are 7 ways to develop a SaaS marketing strategy:
- Build a marketing strategy specifically for your SaaS solution.
- Constantly optimize your website conversion rate.
- Showcase your expertise and become a thought leader.
- Avoid cloud features and acronyms – focus on the benefits.
- Nurture your prospects.
- Market to your existing customers.
- Use the right software for you.
What are some good examples of successful SaaS marketing strategies?
- Display the price clearly
- Embrace content marketing
- Offer free SaaS trials
- Pay attention to SEO
- Refine PPC campaigns
- Use retargeting
- Leverage SaaS review sites
- Incentivize referrals
- Offer fewer choices
- Make SaaS sign-ups easy
- Refine calls to action (CTAs)
- Improve customer experience
Pro Tip: Always be ready to adapt.
What are the main errors to avoid in SaaS marketing?
Here are the 9 biggest SaaS marketing mistakes to avoid:
- Ignoring the importance of User Experience (UX)
- Not utilizing tracking pixels to your website
- Overlooking the way audiences consume content
- Neglecting SEO
- Not incorporating a blog
- Underutilizing social media
- Misunderstanding leads
- Not focusing on customer retention
- Misusing analytics tools
SaaS marketing in a nutshell
SaaS marketing specifically focuses on promoting and acquiring leads for subscription-based SaaS products.
Although SaaS companies use traditional marketing strategies, such as content marketing, SEO, and PPC, they also focus on different strategies like free trials, referrals, and customer success marketing.