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6 Tips on How to Market a SaaS Product

How to Market a SaaS Product

SaaS is a growing industry with a lot of potential. Recent data show 70% of apps that companies use are SaaS-based and this is expected to grow to 85% by 2025.

To capitalize on this trend, SaaS companies need to understand how to effectively market their SaaS products. That also means willingness to invest in various marketing activities.

According to SaaS Capital, SaaS businesses spend 15-25% of their revenues on marketing activities. The more you invest in marketing, the more you stand to gain in terms of growth and success.

However, SaaS product marketing can be tricky. You’re not just selling the SaaS product itself, you’re also selling the idea of using the said product.

In this blog post, we’ll give you some tips on how to market your SaaS product effectively and efficiently so that you can reach your target audience and close new deals.

 

1. Understand Your Target Market

 

Our first tip starts with understanding your target market, or in other words, your audience. Knowing who your ideal customer is and their needs can help you create a sales and marketing  strategy that will ring a bell in their heads.

To get started, consider conducting market research or surveys to gain insights into your target market’s preferences and pain points. You can also reach out to industry experts for their insights as to how to reach them.

Remember that it’s important to continually monitor your target market and adjust your sales and marketing strategy as needed to ensure that you’re always on top of their needs.

Below are the primary demographics you’ll need to consider when identifying the needs of your target market.

 

Age

 

Younger SaaS users may be more likely to need mobile-friendly SaaS applications, while older SaaS users may be more likely to need SaaS applications that are easy to use and navigate.

Age can also help to indicate the level of experience your SaaS target market has with using SaaS applications. For example, if you are targeting SaaS users who are new to using SaaS applications, you will need to make sure that your SaaS application is easy to use and understand.

On the other hand, if you are targeting SaaS users who are experienced in using SaaS applications, you will need to make sure that your SaaS application is able to meet their needs and expectations.

 

Gender

 

Gender can affect the way people use and perceive software. For example, women may be more likely to use software that is designed for communication and collaboration, while men may be more likely to use software that is designed for task management and productivity.

 

Location

 

Because SaaS is delivered over the internet, it can be used by people in different locations. This can be an important factor when determining the needs of your SaaS target market.

For example, if you are targeting businesses in a specific region, you will need to consider the unique business needs of that region. For example,  if you are targeting businesses in the US, then you will need to make sure that your SaaS application meets the data privacy standards required by US laws.

Similarly, if you are targeting SaaS users in different time zones, you will need to account for differences in work schedules and availability of internet resources.

 

Income

 

SaaS products are often subscription-based, making income an important metric when determining who can afford your product. In addition, SaaS products tend to be more expensive than one-time purchase software, so knowing the income of your target market can help you set pricing that is competitive yet still profitable.

 

Lifestyle

 

SaaS target markets are often defined by lifestyle choices and needs. For example, someone who frequently travels for work may need a SaaS product that helps them stay organized and connected while on the go. Similarly, someone who is regularly working on projects with team members in different time zones may need a SaaS product that makes it easy to collaborate virtually.

 

Psychographics

 

Psychographics is an important demographic to consider when identifying the needs of your SaaS target market for a few key reasons.

First, SaaS users typically have a great deal of control over their workflows and environment. As a result, they’re often very particular about the tools they use and how they use them. Therefore, it’s important to understand not only what they do but also why they do it.

Second, SaaS users are often keenly aware of the latest trends and technologies. As a result, they’re quick to adopt new tools and processes that can improve their workflows. Therefore, it’s important to stay up-to-date on the latest SaaS developments in order to meet the needs of your target market.

Finally, SaaS users are often very passionate about their work. As a result, they’re often willing to pay premium prices for tools that help them work better, faster, and easier. Therefore, it’s important to offer high-quality products and services that meet the needs of your target market.

 

2. Research your competition

 

Retaining customers is one of the many challenges faced by SaaS companies with customer retention rates only hitting 50 to 68%. This is particularly a problem considering that acquiring new customers can cost 6-7 times more than retaining existing customers. One of the best ways to address this is to understand what your competition is doing and how they are marketing their products.

By researching your competition, you can learn what features they are offering, what pricing models they are using, and what marketing strategies they are employing. This information can be invaluable in developing your own SaaS marketing strategy.

What are they doing well? What could you do better? How can you Position your product in a way that highlights its unique selling points? These are all important questions that can only be answered through careful research.

In addition, by understanding your competition, you can be sure to avoid making the same mistakes that they have made.

Some things you can do to research your competition include reading reviews, joining industry forums or groups, and conducting competitive intelligence.

 

3. Develop a unique selling proposition (USP)

 

One way to set your SaaS product apart from the competition is to develop a unique selling proposition (USP). A USP is a statement that articulates what makes your product different from and better than other similar products on the market. It should be clear, concise, and memorable.

Creating a strong USP can help you attract and retain customers, boost brand awareness, and increase sales. If you’re not sure where to start, try brainstorming a list of your product’s most important features and then narrowing it down to the ones that are most unique or beneficial to users. Focus on why customers should buy from you instead of your competitors.

To help you develop a unique selling proposition, consider the following questions:

  • What makes my product or service better than my competitors?
  • What benefits do my customers receive from using my product or service?
  • What sets me apart from other companies in this industry?

Once you have your USP, make sure to integrate it into all aspects of your marketing strategy, from your website and social media posts to your email campaigns and advertisements.

 

4. Create a marketing plan

 

A marketing plan is essential for any SaaS company because it helps to create a strategy for generating leads, converting them into customers, and then retaining them. Without a solid plan in place, it can be very easy to lose track of your target market and miss out on opportunities to grow your business.

A good marketing plan will help you focus your efforts, track your progress, and make necessary adjustments along the way.

Your SaaS marketing plan should have the following elements:

  • Details on how you will reach your target market and what strategies you will use to do so.
  • A budget for your marketing activities.
  • Goals that you want to reach and timelines for achieving them

 

5. Implement and monitor your strategy

 

Put your plan into action and track your progress. This involves creating all of the necessary marketing materials and distributing them through the appropriate channels.

When implementing your strategy, you should take into account the unique challenges and opportunities that come with marketing a SaaS product. For example, SaaS products often have a longer sales cycle than other types of products, so it is important to focus on building relationships with potential customers and providing them with valuable content that will help them make a decision.

In addition, SaaS products usually require a higher level of customer engagement and support, so it is important to have a plan for how you will provide this level of service.

Meanwhile, to monitor your strategy, you’ll need to track the performance of your campaigns and record any changes in customer behavior. This will allow you to adjust your strategy as needed, ensuring that you reach your desired objectives.

 

6. Measure your success and make adjustments

 

Below are a few ways to measure the success of your marketing strategy:

 

Evaluate customer feedback

 

The best SaaS companies are always asking themselves how they can make the customer’s life easier. They’re constantly tweaking the product, testing different features, and making sure that the customer is always happy.

 

Examine social media analytics

 

There are a number of different SaaS platforms that offer social media analytics, each with its own advantages and disadvantages.

Salesforce’s Radian6 is one of the most popular SaaS platforms for social media analytics, due to its ability to track a wide range of social media data points.

However, some users find Radian6 to be expensive and complex to use. Another popular SaaS platform is Hootsuite Insights, which offers a more user-friendly interface than Radian6. However, Hootsuite’s reporting capabilities are not as robust as Radian6.

 

Check website traffic

 

Tracking website traffic will help you understand how users are interacting with your SaaS solution.

By understanding which pages users are visiting, companies can also make sure that the most important features are being used.

 

Review sales figures

 

By analyzing their sales data, Saas companies can identify patterns and trends that can help them to improve their performance.

For example, they may notice that certain products are selling well in certain regions but not in others. Or they may find that their sales vary widely from month to month. By identifying these trends, SaaS companies can make changes to their sales strategies that can lead to more consistent and successful results.

 

Analyze the sales funnel

 

The sales funnel helps SaaS businesses track their progress in converting potential customers into actual paying customers. By understanding the sales funnel, businesses can identify which stage of the funnel their potential customers are stuck in and take steps to move them down the funnel.

For example, if many potential customers are getting stuck at the awareness stage, the business might need to invest more in marketing and advertising. If potential customers are getting stuck at the evaluation stage, the business might need to provide more information about the product or create better offers.

 

Assess the lead quality

 

SaaS companies can use lead scoring to rate the quality of a lead, based on factors such as job title, company size, or industry. By rating leads, SaaS companies can prioritize which ones are more likely to convert into customers. This helps sales teams focus their efforts on the most qualified leads, and ultimately results in more sales.

In addition, SaaS companies can use lead nurturing to build relationships with leads that may not be ready to buy immediately. By sending educational content and timely follow-ups, SaaS companies can keep their brand top of mind and position themselves as a trusted resource.

 

Calculate the customer’s lifetime value (CLV)

 

CLV refers to the total value that a customer will bring to your business over their lifetime. By calculating CLV, SaaS businesses can understand which customers are the most valuable, and prioritize their investment in these customers.

There are a few different things you can do to calculate customer lifetime value.

  • First, consider the average deal size and the churn rate.
  • Then, multiply those two numbers together to get the customer’s lifetime value.
  • Finally, add in any additional revenue streams, such as upsells or cross-sells.

 

Final Thoughts

 

If you’re marketing a SaaS product, it’s important to understand how to reach your target audience and what messaging will resonate with them. By following the tips above, you can create a successful marketing strategy that helps you close more deals and boost your business growth.

Consider hiring a SaaS product marketing manager if you need help implementing the strategies outlined in this article.

For more helpful tips and resources on growing your SaaS company, be sure to visit our blog.

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Ken Moo
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