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In just over twenty years, the Software as a Service (SaaS) business model has gone from a “passing fad” to the most common way for companies to build their software stack. This dramatic shift in popularity and relevance has resulted in quite the change for any marketers focusing on selling SaaS.
While there’s still much to be said for selling your audience on the concept of a subscription service for software, you’re much more likely to run into issues with an over-saturated market. This means that only the most targeted, well-thought-out, and creative marketing efforts are going to make a splash.
Whether you’re just starting out with SaaS marketing or have been around since that first launch in 1999, there’s always more to learn. That’s why I’ve compiled all my knowledge from years of marketing to create this ultimate guide to SaaS marketing.
Let’s jump in!
What is SaaS Marketing?
As you’re no doubt aware, SaaS stands for Software as a Service. The business model operates like a subscription service, but the thing that people subscribe to is the use of your software.
All that to say, when you’re marketing for SaaS, you need to think of it more as selling a subscription than software. Because you’re convincing people to invest in an ongoing relationship and expense, you’re able to pull out a few extra tricks.
However, as many doors as this kind of marketing opens, it also comes with its own challenges. You aren’t just selling people on a one-time purchase. The marketing for your SaaS company often continues after the first sale.
Your team will need to be prepared to keep customers engaged and coming back again and again.
SaaS Marketing Strategies
If you’ve been doing marketing for years like I have, you start to have a few go-to strategies that you use again and again. Approaching a brand-new business structure like SaaS is a great opportunity to shake things up a bit and test out a new strategy or two.
Here are a few of the angles that I find work well for SaaS marketing in particular.
Free Trials
As I mentioned before, committing to a specific SaaS product requires that people trust it for a long time. They will continue to subscribe as the months go by, so they need to be sure that the product is the right fit for them.
This is even more evident when your SaaS product is part of the B2B market. Customers have to prove how necessary your software is before they can pull the trigger on a long-term contract for their company.
Offering a free trial lets your software do the convincing. People who are on the fence are far more likely to agree to a free trial than a sale, and that gives you a far more compelling case for them to stick around.
Quality Content
There’s a chance that your SaaS product fills a role your customers didn’t know needed filling. More often than not, the companies that offer software as a service also fill the role of educator for their audience.
For example, if your software helps to create connections between marketing and sales, you may want to write a blog post or host a podcast about the importance of synergy across these teams. If you can become a thought leader in your field, then you may be able to shift the entire industry toward understanding why they need your product.
If you can create content that goes beyond ad copy and is genuinely useful for your customers and anyone else who comes across it, you’ll quickly become a part of their day-to-day work. This makes it easy to sell them on a subscription.
Paid Marketing
Not everything has to break the marketing mold. If you understand your target audience and what gets them excited, you can make a huge impact with some well-placed paid ads.
Whether you focus on social media ads, paid search, or display ads, there’s nothing wrong with getting people’s attention the traditional way.
The most important part of this strategy is fully targeting your ads. Go all in when it comes to target market research, and make sure your money is going towards the best channels for your goals.
Referral Programs
If you really want to pack a punch, my favorite way to get people hooked on software is through a referral program. People trust their friends and colleagues when they make a recommendation, and if your customers trust your product and see the value in sharing it, they’re going to be your most successful advocates.
Think of offering a bonus when a user refers a new buyer. You can offer loyalty programs, points, or even a discount that both the referrer and the newbie can enjoy. This will encourage your user base to promote your product in their networks, which will expand your reach with ease.
How to Get Leads for Your SaaS Business
Convincing people to take the jump and invest in your SaaS can be tough, but it’s practically impossible if you aren’t able to generate enough leads to leave space for error. Even with a spectacular plan in place, some of the highest-performing SaaS companies have a conversion rate of only 10-20%.
Clearly, it’s vital that you keep as many leads coming in as you can. Here are a few tips to keep drumming them up!
Understand Your Target Audience
I love doing market research! It's so fun to imagine the types of people who will get the absolute most out of a product or service.
If you want to bring the right kind of people to your SaaS company, you have to know where all those perfect leads are hiding. Understanding what makes your audience tick will lead you right to them.
Consider the following questions:
- What potential customers could benefit from your SaaS?
- What are their pain points?
- What other services do they already have in place?
- Where is your audience most active online?
Knowing the answers to these questions makes it easier to decide where to invest your marketing money and time.
Master Keywords and SEO
So many people find products by searching for them, and your customers are no different. If you want your website to pop up first in their results, you’ll need to understand SEO and keyword optimization.
This includes optimizing titles, meta tags, descriptions, and page content to rank for as many related keywords as possible. Research your competition to figure out what keywords they’ve used in their SEO and try to include those in yours while also adding unique words that are specific to your product.
Also pay attention to “long-tail” terms: longer phrases that are usually more specific to a person’s intent.
With the right SEO tactics in place, you can draw some serious organic leads to your site.
Work With Ambassadors
The power of personal influence never ceases to amaze me. Working with influencers and ambassadors is an effective way to reach your target customers and introduce them to your product.
The kind of ambassadors you’ll want to partner with will depend on your niche and the type of service you offer, but you can start by looking for well-known and well-trusted voices within your community.
These influencers will be more likely to get your message out, as their followers will be more likely to follow their advice. See what I did there? If you’re already using a referral system, you can easily include ambassadors in your existing infrastructure.
Optimize Your Website
Whether you have a well-established website or are just getting started, it's important to focus on optimizing the experience of your visitors. You want to make sure that everything is uncluttered and easy to navigate.
Make sure that key pieces of information can be found quickly and that your visitors can find the products and services they need with minimal effort.
The biggest missteps here include having issues with speed, and not having a site that works well on mobile. This leads to an unprofessional feel, and can make leads bounce quickly.
How to Measure SaaS Marketing
You can only improve something if you understand where you stand. This is as true for marketing as it is for anything else.
There are several specific KPIs that you and your team will want to keep track of including
- Free Trial Conversion - How many people are sticking around when their free trial ends?
- Customer Retention - How long are leads staying subscribed?
- Lead Flow - Where are your successful leads finding you?
- Cost Per Action - How much do you spend to attract and convert each lead?
- Revenue Per User - What is the Lifetime Value of each new user?
- Lifecycle Segmentation - What stages are leads going through when working with your product?
Knowing this information will allow your team to hone their marketing efforts, and keep you on the cutting edge of what’s working and what needs to be improved.
The Bottom Line
The SaaS industry is growing like crazy, and marketers get to lead that charge. Understanding the channels available to your team, how to get your audience excited, and what KPIs are important will help you ensure you’re prepared.
When all is said and done, you know you have a great product to share. With the right tactics in place, you’ll be able to get people invested and keep them invested long into the future.
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