How Effective Is Email Marketing For SaaS Businesses
Email marketing has been around for a while, and it is still one of the most effective marketing tools for SaaS businesses. In fact, email marketing has a return on investment or ROI of 4,300%! That means for every $1 you spend on email marketing, you can expect to make back $43.
With email marketing, you can reach a large audience quickly and easily. You can create multiple email campaigns, and you can create a new campaign in just a few minutes with the help of modern email marketing tools. Plus, it allows you to track your results so you can see how effective your email marketing campaigns are.
However, email marketing is not without its challenges. One of the biggest challenges is getting people to actually open and read your emails.
Another challenge is making sure that your actual emails are relevant and interesting enough to keep people engaged. In this article, we’ll share some tips on how to avoid these challenges, and create an effective email marketing campaign.
What is Email Marketing and How Can It Be Used for SaaS Businesses?
Email marketing is a form of direct marketing that uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. However, the term is usually used to refer to:
- Sending emails with the primary purpose of enhancing the relationship of a merchant with its current or previous customers
- Encouraging customer loyalty and repeat business
- Acquiring new customers or convincing current customers to purchase something immediately
- Adding advertisements to emails sent by other companies to their customers.
Email marketing can be extremely effective for SaaS companies. It can be used to nurture leads, build relationships with customers, and turn one-time buyers into lifelong customers. Additionally, email marketing can be used to upsell and cross-sell to generate more revenue for your business.
The Benefits of Email Marketing: Why Bother with Email Marketing?
With that said, email marketing is still one of the most effective marketing channels for SaaS businesses. In fact, a recent study by McKinsey found that email is 40 times more effective at acquiring new customers than Facebook and Twitter combined.
There are a few reasons why email marketing is so effective for SaaS businesses:
1. Email Marketing Has Wide Reach
Email allows you to reach a large audience with your message. For example, if you send a pitch to 50,000 email addresses and only 1% of those people buy your software, you will still have 500 new customers.
2. Emails Can Be Personalized
Email allows you to interact with your customers on a more personal level. A recent study found that people are more than 4 times more likely to buy from a company they know and trust.
Email is a great way to build relationships with potential and current customers. You can send prospects a few emails that are non-salesy and informational before you even mention your SaaS product.
When you do eventually reach out to them about your software, they’re more likely to give you their attention because they already know who you are.
3. It’s Scalable
The more you email, the more people are likely to open and read your messages. So if you have a small email list, you can target specific groups of people or even individual contacts.
If you have a large contact list, you can send bulk emails that contain links to your website or a CTA to maximize clicks and conversions. You can even create automated drip campaigns that send a series of emails over time when the customer meets specific conditions during their customer journey.
4. It’s Measurable
One of the most frustrating things as a business owner is not having a way to measure your marketing efforts. If you can’t measure your marketing performance, you won’t be able to tell if your strategy is working or not and you have no way to improve it because of the lack of data.
With email marketing, you can track performance of each of your campaigns, provided that you’re using an email marketing tool. With the help of a software, you’d be able to tell if your email subject lines are good or bad, which emails get opened and which ones don’t. You’d also see when a particular time of day is best to send emails and when it’s not.
5. Sending Emails Can Be Automated
Email marketing is also a great way to automate your business. You can set it up to send out emails on your schedule, and you don’t even have to do anything once it’s set up. It will just run on its own, sending out the content you want people to see at your preferred time.
You may use tools like Aweber or MailChimp to help you set this up and manage your emails. You can also send out email newsletters on a regular basis, keeping your readers informed about new content you’ve written or other big updates about your SaaS.
There are also some great tools out there that help you track your email campaign performance. Examples are Mailtrack and Getresponse. So, if you’re looking for a way to market your SaaS, but don’t have the time or resources to do it, then email marketing can be a great option.
6. Get Feedback From Customers Easily
If you’re sending a monthly or quarterly newsletter, you can ask customers to fill out a survey or give you their opinions on what’s going well and what needs improvement about your software. You can then use this data to plan for improvements and updates in the future.
7. It’s Cost-Effective
You can use email marketing to reach a lot of people without spending much money. Not only is email marketing less expensive than other SaaS marketing methods, but you can also track its effectiveness and make adjustments as needed.
8. Increased Flexibility and Adaptability
E-mail marketing allows you to be very flexible in how and when you reach your customers. You can send out a message whenever it’s convenient for you, instead of following a set publishing schedule. You can either send a newsletter or a short update to your subscribers about what’s going on behind the scenes of your SaaS product development. Email marketing allows you to keep in touch with your customers your way.
9. Increased Deliverability
Thanks to improvements in technology and the fact that most people use email to communicate, the chances of your message being delivered are higher than with a print ad or direct mailing. The cost of sending an email is also cheaper than printing and postage.
Email marketing can be used in conjunction with other marketing channels, especially direct mail. Direct mail can be sent to people who are not yet customers, introducing them to your SaaS product.
What are the Advantages for Customers?
SaaS businesses do not only benefit from email marketing. Customers can gain something from your emails, too.
The major advantage for customers is that they get to hear about new SaaS products, as well as special offers, promos and discounts directly in their mailbox. This saves them the time and trouble of going through your website or social media platforms to find out the latest happening with your SaaS.
They don’t have to look at your messages if they don’t want to and can delete them if they feel bombarded by email. But rest assured, your message will always get through, even in the event of a busy inbox.
Your customers still receive your message, even if they don’t check their email very often. Customers also get to choose when they read your email, which is important because they may have time constraints or other things to do.
Email marketing is quick and inexpensive.
Probably, the major expense that you will have is your subscription to your email marketing tool. But once you set up an email campaign, you can send your message to thousands of customers in just a few clicks.
The delivery is fast and simple, too. Your customers can respond to you, or click on your link to visit your website. And of course, the message can be sent at any time of the day.
Email marketing requires time to create the content. To make the most of email marketing, you need a solid strategy and an email marketing tool that can help you get the most out of your SaaS email marketing campaigns.
How to Set Up Email Marketing for Your SaaS Business: a Step-by-Step Guide
Email marketing can be a great way to connect with potential and current customers for your SaaS business. Here is a step-by-step guide to setting up email marketing for your business:
1. Choose An Email Marketing Tool
When choosing an email marketing tool, it is important to make sure that the service integrates with your website. This will allow you to collect email addresses from visitors to your site and automatically add them to your email list.
Secondly, you’ll want to consider the features and capabilities of the different tools. Some tools offer more robust tools for creating and managing email lists, while others may be more focused on providing templates and design options.
Ultimately, the best platform for you will depend on your specific needs and preferences. However, by taking these factors into account, you can be sure to find an email marketing platform that will suit your needs.
2. Create a Great Email Template
SaaS businesses need to have great email templates. This will ensure that they can keep their customers updated on new features, deals, and other important announcements. There are a few things to keep in mind when creating an email template.
First, the template should be responsive, so that it looks good on both desktop and mobile devices.
Second, it should be easy to customize, so that each SaaS business can make it their own.
Finally, it should be compatible with major email marketing platforms. By following these guidelines, SaaS businesses can create an email template that will help them stay in touch with their customers and grow their business.
3. Set Up An Auto-Responder
SaaS companies can use auto-responders to set up automated email marketing campaigns. This is a great way to stay in touch with customers and keep them updated on new product features, special offers, and other important news.
The first step is to create a list of subscribers. This can be done by importing contacts from your CRM or other existing lists.
Next, you’ll need to create the actual email campaign. Most SaaS platforms offer templates and drag-and-drop editing tools that make it easy to create beautiful emails. Once the campaign is created, you’ll need to set up the auto-responder. This involves specifying the frequency and timing of the emails, as well as the actions that will trigger them.
For example, you might want to send a welcome email to new subscribers, or an anniversary email to long-time customers. With an auto-responder, you can automate these emails so that they’re sent out automatically, without any extra work on your part.
Ultimately, setting up an auto-responder can save you time and help you stay in touch with your customers.
4. Set Up A Drip Campaign
A drip campaign is a SaaS-based email marketing strategy in which a pre-written series of emails are automatically sent to leads over a period of time. The goal of a drip campaign is to slowly nurture leads until they are ready to make a purchase
Drip campaigns can be customized according to the needs of the business and the products or services being sold. For example, a business might want to send weekly updates to subscribers about new blog posts, or monthly emails about special deals and promotions. The content of each email should be carefully planned out in advance, and should be designed to move the lead closer to making a purchase
Setting up a drip campaign can be a great way to nurture leads and keep them engaged with your business. By carefully planning the content of each email, you can gradually build trust and rapport with leads, and eventually convert them into paying customers.
5. Create a List of Contacts
SaaS companies can use email marketing to create a list of contacts for their business. There are a number of ways to do this, such as through an opt-in form on the company website or by providing a way for people to sign up for the company newsletter.
Once the list of contacts is created, the SaaS company can then use it to send out periodic emails with information about new products, updates, or special offers. By building a list of contacts, SaaS companies can ensure that they have a group of interested individuals who can be reached with targeted marketing messages.
6. Write Compelling Emails
SaaS businesses rely on email marketing to reach their target audiences. However, simply sending out a mass email is not enough to be successful. In order to write compelling emails that will engage readers, there are a few things to keep in mind.
First, get to the point quickly. Readers do not have time to wade through long paragraphs of text.
Second, use strong Call To Actions (CTAs) to encourage readers to take the desired action.
Third, personalize emails as much as possible. Addressing readers by name and including relevant information will help to grab their attention.
Finally, pay attention to the overall design of the email. An eye-catching layout can make a big difference in whether or not someone reads your email. By following these tips, you can write emails that will stand out from the rest and achieve your desired results.
7. Send Your Emails Regularly
SaaS companies that email their list on a regular basis generate more revenue than those who don’t. Email marketing is a powerful way to stay in touch with your customers and keep them engaged with your product.
A good rule of thumb is to send an email once a week. Make sure to keep track of your open and click-through rates so that you can gauge the effectiveness of your campaign.
By sending out regular emails, you can remind them of the value your product offers and encourage them to come back to your site.
In addition, regular emails can help to build a relationship of trust between you and your customers. They will appreciate the fact that you are taking the time to communicate with them on a regular basis. So if you want to maximize your SaaS company’s revenue, make sure to send out regular emails to your list.
Tips for Creating Emails That Convert
Email is one of the most commonly used tools for communication in the business world, yet many people still don’t know how to use it effectively.
Here are a few tips to create emails that convert:
- Keep it short and sweet. The average person’s attention span is shorter than ever, so make sure your emails are concise and to the point. No one wants to read novels in their emails.
- Use strong subject lines. Your subject line is the first thing recipients will see, so make sure it’s catchy and tell them what’s inside.
- Personalize your emails. Generic messages are less likely to be opened and read, so take the time to personalize each email you send. For instance, include your recipient’s first name for a more personal touch. Utilizing the features of your email marketing tool will allow you to do this.
- Use images sparingly. Too many images can make an email seem cluttered and difficult to read, so only use them when necessary.
- Use bullet points. Bullet points are great for breaking up large chunks of text and making email easier to read.
- Pay attention to the “from” line. The “from” line is usually the first thing recipients see, so make sure your company email looks professional to avoid giving your recipients the impression that your emails are spam.
- Proofread. Make sure you proofread your email before sending it out. Typos, grammatical errors, and poor spelling can ruin your professional image or SaaS brand.
- Don’t use ALL CAPS. Using all capital letters is a bad online etiquette that makes you look unprofessional.
- Use emoticons sparingly. Emoticons and other symbols are fine if they’re used wisely. However, overuse can also make you look unprofessional.
- Don’t use abbreviations or acronyms, unless you’re sure recipients know what they mean.
- Avoid HTML formatting, unless you’re familiar with how to use it. In many cases, when creating a new email, using your email marketing tool’s basic editor is already good enough.
Measuring Success: How Do You Know If Your Email Marketing Campaign Is Working?
Email marketing can be a great way to reach out to potential customers and keep them updated on your latest offerings. But how can you tell if your email marketing campaign is actually working?
There are a few key indicators that you can look at to measure the success of your email marketing campaign. First, take a look at your open rate. This is the percentage of people who open your emails out of the total number of people who receive them. A good open rate is around 17-28%.
Next, take a look at your click-through rate (CTR). This is the percentage of people who click on links in your emails. A good CTR is around 2.6%.
Finally, take a look at the conversion rate for your email campaigns. This is the percentage of people who take a specific action, such as making a purchase or filling out a form, after they click on one of your links. A good conversion rate is around 2-5%.
Is email marketing worth it for SaaS businesses? Email marketing is definitely worth it for SaaS businesses. Not only is it a great way to keep in touch with your customers, but it’s also a great way to promote your software, share big news and updates about your product, and announce time-limited promos. Plus, it’s a great way to build relationships with your customers. So if you’re not using email marketing, now is the time to start.
If you need more tips on growing your SaaS business, check out our SaaS marketing blog!