Tips on How to Spend Your SaaS Marketing Budget Wisely
The subject of marketing can be a difficult one for many people. The truth is that there are so many different aspects to it, and the term “marketing” can mean something very different depending on who you’re talking with. For example, if you’re in retail, marketing might mean coming up with a clever advertising campaign to get people into your store. If you’re in the tech industry, on the other hand, marketing might refer to developing and executing a plan to get your product in front of potential customers.
In the world of software-as-a-service (SaaS), marketing is essential to the success of your business. After all, without customers, you don’t have a business. But given the vast number of marketing channels and strategies available today, it can be difficult to know where to start – or how to allocate your limited resources.
This article will give you some tips on how to spend your SaaS marketing budget wisely, so you can get the most bang for your buck.
10 Best Ways to Spend Your SaaS Marketing Budget
1. Invest in SEO
Search engine optimization (SEO) is one of the most effective and efficient ways to market your SaaS business. According to Constant Contact, organic traffic can have a 14.6% close rate, while outbound leads have a 1.7% close rate.
By optimizing your website and content for the search engines, you can attract more organic traffic – that is, people who are actively searching for solutions like yours.
2. Focus on Your Website
Your website is often the first point of contact between you and your potential customers. As such, it’s important to make sure that your site is optimized for conversions. That means ensuring that your site is well-designed, informative, and user-friendly. According to Forrester Research, a well-designed website can increase conversions by up to 400%.
Check out our list of 12 Tips to Optimize Your SaaS Website Design for Conversion.
3. Use Content Marketing
Content marketing is a great way to attract attention to your SaaS business. By creating helpful and informative blog posts, eBooks, white papers, and other types of content, you can position yourself as a thought leader in your industry – and attract more leads in the process.
To help you get started, check out our blog post on 10 B2B SaaS Content Marketing Strategies That Truly Works
4. Invest in Paid Advertising
Paid advertising is another effective way to market your SaaS business. By placing ads on Google, Bing, social media, and other websites, you can reach a larger audience and generate more leads.
Paid advertising can be costly, but if you use it wisely, it can be a great way to get your business in front of potential customers. According to Eternity Marketing, the average small business spends $9,000 on paid search advertising per month.
5. Implement an Inbound Marketing Strategy
Inbound marketing is a holistic approach to marketing that focuses on attracting visitors, converting them into leads, and then nurturing those leads until they’re ready to buy. If you’re not already using inbound marketing to market your SaaS business, now is the time to start.
According to HubSpot, inbound marketing generates 54% more leads than traditional outbound marketing techniques like cold-calling and email blasts.
Some examples of inbound marketing strategies are:
- Creating informative blog posts
- Offering free eBooks and white papers
- Creating helpful how-to guides
- Hosting webinars and podcasts
- Creating helpful videos
6. Use Social Media
Social media is a powerful marketing tool that you can use to reach a wider audience. By sharing your content and engaging with your followers on social media, you can generate more leads and drive more traffic to your website. According to LinkedIN, businesses that use social media generate 2x more leads than those that don’t.
7. Host Webinars
Webinars are a great way to generate leads and build relationships with potential customers. By hosting a webinar, you can educate your audience on what your SaaS product can do – and how it can benefit them.
Other ways you can use webinars to your advantage are:
- Showcasing customer success stories
- Introducing new features
- Conducting Q&A sessions
8. Run retargeting campaigns
Retargeting is a form of online advertising that allows you to show ads to people who have already visited your website. By running retargeting campaigns, you can keep your SaaS business top of mind – and increase the likelihood that those leads will convert into customers.
9. Participate in trade shows and events
Tradeshows and events can be a great way to generate leads and build relationships with potential customers. If you’re not already participating in tradeshows and events, consider doing so – it could be a great way to grow your business.
10. Work with influencers
Influencer marketing is a type of marketing that focuses on working with influential people to promote your brand or product. By partnering with influencers, you can reach a larger audience and generate more leads.
Other ways partnering with influencers can benefit your SaaS company include:
- Increasing brand awareness: When you partner with influencers, your brand will be seen by their followers – which can help increase brand awareness and generate more leads.
- Boosting website traffic: If an influencer promotes your SaaS product on their blog or social media, you could see a significant increase in website traffic.
- Generating more leads and sales: Influencer marketing can also lead to more sales and conversions. In fact, according to a report from Investp, 40% of consumers say they’re more likely to purchase a product after seeing it recommended by an influencer.
When it comes to marketing your SaaS business, there are a number of different strategies and tactics that you can use. By investing in SEO, focusing on your website, using content marketing, and investing in paid advertising, you can attract more leads and grow your business.
Now that you know some of the best ways to market your SaaS business, it’s time to put those strategies into action. If you need help getting started, contact a marketing agency that specializes in SaaS marketing. They can help you create a comprehensive marketing strategy – and ensure that your SaaS business is successful.
How to Set Your SaaS Marketing Budget
No matter what size your company is, setting and sticking to a marketing budget is crucial to your success. But when it comes to SaaS marketing, there are a few things that you need to keep in mind.
1. The Cost of Customer Acquisition
The first thing that you need to consider when setting your SaaS marketing budget is the cost of customer acquisition. This is the amount that you’ll need to spend to acquire each new customer – and it’s important to keep this number in mind when setting your budget.
2. The Lifetime Value of a Customer
Another thing to consider when setting your SaaS marketing budget is the lifetime value of a customer. This is the amount of revenue that you can expect to generate from each customer over the course of their lifetime.
3. Your Revenue Goals
Finally, you’ll need to consider your revenue goals when setting your SaaS marketing budget. How much revenue do you want to generate? How many new customers do you need to acquire? Once you know your revenue goals, you can start to allocate your budget accordingly.
When it comes to setting your SaaS marketing budget, there are a few things that you need to keep in mind. By considering the cost of customer acquisition, the lifetime value of a customer, and your revenue goals, you can ensure that you’re setting a budget that will help you grow your business.
How to Get Started in Creating Your SaaS Marketing Budget
There’s no one-size-fits-all answer to this question – it depends on your specific business and marketing goals. But there are a few things that you should keep in mind when creating your SaaS marketing budget.
1. Understand the different types of marketing
There are a number of different types of marketing, and each has its own set of costs. It’s important to understand the different types of marketing – and the associated costs – before you start creating your budget.
The different types of marketing include:
- SEO: The cost of SEO can vary depending on the scope of your project. But, in general, you can expect to spend between $500 and $5,000 per month on SEO.
- PPC: Pay-per-click advertising can also vary in cost, depending on the platform that you’re using and the competitiveness of your keywords. But, in general, you can expect to spend $500 to $10,000 per month on PPC.
- Content marketing: The cost of content marketing will depend on the amount of content that you need to produce. If you’re outsourcing your content, you can expect to spend $500 to $5,000 per month.
- Social media marketing: The cost of social media marketing will also depend on the scope of your project. But, in general, you can expect to spend $500 to $5,000 per month on social media marketing.
2. Determine your budget parameters
Once you understand the types of marketing, you’ll need to determine your budget parameters. How much can you afford to spend on marketing? How much do you need to spend to reach your goals?
To help you determine your budget parameters, you can use the following equation:
(Customer acquisition cost x Number of customers) + (Monthly recurring revenue x Monthly churn rate) = Monthly marketing budget
3. Allocate your budget
Once you’ve determined your budget parameters, you can start to allocate your budget among different marketing activities. As a general rule, you should allocate the majority of your budget to activities that have a proven track record of generating results.
To help you allocate your budget, you can use the following equation:
(Percentage of leads from activity) x (Monthly marketing budget) = Activity budget
4. Create a realistic budget
Once you understand the types of marketing and have determined your budget parameters, you can start to create a realistic budget. Make sure to consider all of the costs associated with each type of marketing – and don’t forget to leave room for unexpected expenses.
Some unexpected expenses that you should consider include:
- The cost of hiring a new employee
- The cost of new software or tools
- The cost of travel
- The cost of events
By considering all of the costs associated with marketing, you can create a realistic budget that will help you reach your goals.
5. Choose a marketing channel that fits your needs and budget
There are a number of different marketing channels – from paid advertising to content marketing. Once you’ve created your budget, you’ll need to choose a marketing channel that fits your needs and budget.
To help you choose the right marketing channel, you can ask yourself the following questions:
- What are my goals?
- What is my target audience?
- What type of content will resonate with my target audience?
- What is the best way to reach my target audience?
- What is the most cost-effective way to reach my target audience?
By asking yourself these questions, you can choose a marketing channel that fits your needs and budget.
6. Measure ROI and adjust accordingly
As you implement your marketing strategy, it’s important to measure your ROI and adjust your budget accordingly. This will help you ensure that you’re getting the most out of your marketing efforts – and help you grow your business.
Final Words about SaaS Marketing Budget
When it comes to setting your SaaS marketing budget, there are a few things that you need to keep in mind. By understanding the different types of marketing and determining your budget parameters, you can create a realistic budget that will help you achieve your marketing goals. And by measuring your ROI and adjusting your budget accordingly, you can ensure that you’re getting the most out of your marketing efforts.
Check out our blog for more SaaS marketing tips – where we’ll go into more detail on each of these strategies and others. And as always, if you need help putting together a comprehensive marketing plan, don’t hesitate to reach out. We’re happy to chat!