How SaaS Marketing is Different from Traditional Marketing
Many firms find that software-as-a-service (SaaS) products are beneficial in terms of increasing corporate efficiency, productivity, and overall revenue. Not only is it a short-term remedy, but it also has the potential to be long-term.
Marketing is a crucial tool for any business since it may assist increase interest in the product or service that you are offering to customers. Owners of SaaS companies, however, may wish to adopt a more targeted approach to marketing than those in other industries, particularly when it comes to customer acquisition. This is due to the fact that you are operating a SaaS firm.
Consider the following differences between SaaS marketing and other types of traditional marketing methods:
SaaS uses a unique sales funnel
When it comes to boosting income, the sales funnel is something that virtually all organisations will be aware of and will place a strong emphasis on. The sales funnels of SaaS companies, on the other hand, are more likely to be customised and designed precisely to the needs of software as a service companies.
This type of sales funnel is also referred to as a pirate funnel or a ‘AAARRR’ funnel. While traditional sales funnels may come to an end once a transaction has been completed, a SaaS sales funnel incorporates a process that continues after the transaction has been completed.
Images courtesy of SaaS and traditional marketing.
The funnel consists of six steps: awareness, acquisition, activation, retention, revenue, and referral. Awareness is the first phase. It’s worthwhile to go through these steps in order to gain a thorough understanding of the significance of this particular funnel as a marketer.
How many people are you able to reach with your message? Because it will assist you understand the amount of potential there is today and what you may be doing to develop that potential as a brand, it is critical to be aware of this first awareness.
This phase involves taking into consideration how many people are actually visiting your website or engaging with you on social media sites. This provides you with a number to work with when it comes time to move on to the next level of the sales funnel.
The stage has been reached at which those potential leads have taken the first step toward becoming customers. Depending on the CTA, it may be as simple as signing up for an email newsletter or commenting on an article that you’ve written.
Having succeeded in getting prospects to take the initial step toward purchasing, retention allows you to obtain information on how frequently they are engaging with or responding to your marketing efforts. Whether they’ve made a single purchase or a number of purchases since then.
What kind of income do you have? Instead of merely engaging with your content and website, it is beneficial to know how much clients are spending and how many of them are paying customers.
Earning a passive income with little or no marketing effort is the goal of every business owner. After all, it contributes to the expansion of your company’s profit margin. Referrals are an excellent area to examine in order to see how many of your customers are referring their friends to your company’s services.
As a business, it is critical to keep consumers over the long term, and offering outstanding marketing and a positive customer experience are essential to doing so successfully. Marketing may aid in the retention of existing clients as well as the acquisition of new ones.
A large number of firms can frequently discover that a large portion of their marketing attempts to acquire new customers are ineffective. According to Auto Grow, 79 percent of marketing leads never result in a transactional transaction. This could be due to the fact that those leads who have made their way into the pirate funnel have not been maintained effectively enough.
A SaaS sales cycle can be unpredictable
There are some SaaS marketing methods that produce rapid sales cycles, and then there are others that produce sales cycles that are quite slow. It is difficult to anticipate the outcome of SaaS sales because they are so unpredictable. This is due to the ease with which the software can be purchased online, as well as the ease with which one can sign up for and download the software from the internet.
However, not all SaaS products are as rapid to market as others, and those that sell to companies are likely to have a longer sales cycle. This is most likely attributable to the fact that a large number of firms do not require an instant solution to their problems.
They spend more time evaluating the value of their investment in the software than they would if they were to go elsewhere. However, according to the research conducted by 99 Firms, 80 percent of organisations already use at least one SaaS application. Sales will still occur eventually, despite the fact that they will be slower.
SaaS customers tend to do more research than most
When selling SaaS to a customer, sales cycles are frequently shorter because the customer is frequently in immediate need of the product. When dealing with uncertain sales cycles, having a SaaS SEO agency on hand can be beneficial in identifying chances for growth and accelerating sales.
Customers who use SaaS products tend to undertake more research than the general public.
When it comes to acquiring software as a service to aid in the productivity and effectiveness of a business, many clients in the market to acquire SaaS goods will conduct extensive research owing to their requirements and demands for this service.
Many people will read numerous reviews and articles that discuss the product they’re looking for, and the type of marketing you perform as a result of this will be dictated by this. This can be useful information to have because it can have an impact on your marketing plan as a result of your knowledge of it.
Having said that, having a strong internet presence and putting a lot of material out there is absolutely necessary. Whether it’s given by the company itself or featured on other high-ranking websites, customer service is essential. There are a variety of outsourced services that a company may use to increase the amount of content that is produced on the internet.
Quick responsive times are important
Customers who are considering acquiring SaaS products have legitimate concerns about their privacy, especially because they are cloud-based and there has been a history of data breaches and attacks on the cloud in the past. Despite the fact that there have been enhancements, the level of security provided is still of high grade. Additionally, including security and privacy benefits in your marketing content is a smart idea to incorporate into your content.
When it comes to marketing, the content that you create should highlight the solutions that your product or service delivers. To put it another way, if one of the reasons some leads haven’t developed into paying customers is that they don’t believe the product or service gives enough value for money, generate content that proves them wrong.
It is critical to have quick response times.
SaaS brands must be proactive in their attempts to be responsive at all times in order to succeed in this highly reactive environment. Having direct access to the company’s customer care team at all times is vital for all customers, including those who have been with the company for some time.
The time spent demoing the products on offer or communicating with customers via the direct messaging areas on their social media platforms may be significantly more than the time spent on other aspects of marketing. If clients or potential leads aren’t getting the prompt responses they require, they’re likely to hunt for another solution.
Having said that, customer retention is crucial in a variety of industries, particularly in the service business. Typically, SaaS products will be accessible for subscription/payment on a monthly or yearly basis, depending on the offering. The ability to keep products and services up to date and functioning efficiently will inspire your customers to continue making payments and subscribing for years to come, resulting in increased revenue.
If you do not give complete customer pleasure, your client retention rates will be far lower than you would like them to be. Because of poor retention, a company’s profit margins are reduced, which can be particularly hazardous for SaaS companies in their early years of operation.
Being responsive to the demands of their consumers is vital for most organisations, but in the SaaS industry, it may mean the difference between keeping a client for another month and losing them to a competitor’s product.
Software is always changing
The fact that software is continually evolving and updating is a significant distinction between traditional marketing and SaaS marketing, as previously stated. As a result, it is critical to stay on top of the modifications and adjustments you make when it comes to your marketing strategy and tactics.
A certain amount of traditional marketing may be able to be recycled or tweaked slightly in order to be churned out time and time again. When it comes to SaaS marketing, the marketers should be responsible for making the necessary modifications. Keeping your consumers interested and involved with the service you provide, as well as satisfied that they are still receiving value, should help you retain customers, whether they are new or existing customers.
Talking to your existing clients about what they think could be improved would be beneficial for any adjustments that are required. The greater the degree to which you can please your clients and resolve the issues they are experiencing with the product, the better.
Make sure that any changes and updates are performed on a regular basis and are treated as a critical aspect of a SaaS business.
There are certain features and conditions that must be met by any industry and firm in order to succeed. When running a SaaS business, it is vital to have a thorough understanding of the selling process at all stages of the sales funnel and beyond. It aids in not just retaining consumers, but also in providing them with the services they require in relation to the software they have purchased.