Top 10 Reasons Why Email Marketing Is
Important For SaaS Businesses

Did you know that 52% of businesses say that email is their main communication tool? Additionally, 29% of companies claim that email is their most effective digital marketing channel.

There is no doubt that a lot of businesses today are putting their confidence in email marketing.

But why is it so crucial for SaaS businesses specifically?

In this blog post, we will talk about the top reasons why email marketing is important for SaaS businesses and how you can maximize this SaaS marketing strategy nowadays.

Let’s dive right in.

1.) Almost Everyone Uses Email

According to a statistics report by HubSpot, there are over 4 billion email users every day.

With the rise of social media and SMS messaging, some people may think that email is becoming more and more obsolete.

However, this is far from the truth.

Email still remains one of the most popular methods of communication, especially in a professional setting and for a small business.

The key here is getting the right people into your email list.

So how do you do that? Here are some tips:

Make Your Emails Mobile Friendly

According to the same statistics report that we mentioned earlier, 46% of smartphone users prefer receiving their business communications via email. Because why not? Emails and mobile phones go well together, after all.

What’s more, 59% of Millennials check their email inboxes using their mobile devices. As for Gen Z, a whopping 67% prefer opening their emails through their mobile phones.

This just goes to show that if you’re not making your email marketing campaigns mobile friendly, you’re missing out on a lot of potential subscribers. Especially if you’re targeting younger groups of people.

Make sure that your email subject lines are short and sweet and that your email content is easily readable on a smaller screen.

Use The Right Lead Magnets

A lead magnet is defined as an irresistible offer that entices your website visitors to hand over their contact information.

Some examples of common lead magnets are ebooks, checklists, cheat sheets, and webinar invitations. Sending emails with these types of email content get more attention than a block of text in an email newsletter.

The goal of using a lead magnet is to get more people to subscribe to your email list. And in order for it to be effective, it needs to be something that your target audience will find valuable.

For example, let’s say your SaaS product helps businesses with sales automation. Then your lead magnet could be an ebook on how to streamline sales operations or a customer success story.

You may use an email marketing software to track the performance of your email marketing campaigns and implement A/B testings to see what marketing strategy and lead magnets works for your SaaS business.

Leverage Content Upgrades To Generate Leads

Using lead magnets as content upgrades is one of the most strategic ways to use content marketing to generate leads.

A content upgrade is a piece of bonus content that adds more value to the blog post that your website visitors are already reading. Your most loyal customers will love the bonus content that you send out.

For example, let’s again have the example where you’re offering a sales automation solution.

Then imagine you have a blog post about the top sales strategies for small businesses. Your content upgrade could be a downloadable PDF containing a sales playbook that can help them convert more leads into customers. This type of promotional email can hook both loyal customers and anyone from your target audience who might need your SaaS product.

This is an effective way to get more people to subscribe to your email list because you’re offering them something that’s relevant to the blog post they’re already reading.

And since they’re already interested in the topic, they’re more likely to subscribe to it. This email marketing strategy has been a true and tested marketing efforts for any types of business.

Optimize Your Opt-In Forms

Your opt-in forms are what your website visitors will use to sign up for your email list. So it’s important that you make sure they’re effective. After all, we bet that you don’t want to have all your marketing effort go to waste.

Here are some tips on how to optimize your opt-in forms:

• Make sure the opt-in form is visible and easy to find. You can place it in a pop-up or in a prominent spot on your website.
• Keep the form short and sweet. Only ask for the information that you absolutely need such as the name and email address of the subscriber.
• Use persuasive copy to encourage people to subscribe to your email list. For example, you can use a call-to-action like “Get instant access now!” or “Sign up now and get XYZ.”
• Include a strong, special offer that will entice people to subscribe. For example, you can offer a discount or a freebie.
• Make sure the form is mobile-friendly so people can easily sign up through their mobile devices.

2.) Emails Can Be Highly Targeted

One of the great things about email marketing is that you can target your emails with much precision.

How? Here are some ways you can do that.

Segment Your Email List

One way to target your emails is by segmenting your email list. This means that you divide your list into smaller groups based on certain criteria.

For example, you can segment your email list by:

• Geographical location
• Demographics (age, gender, etc.)
• Interests and preferences
• Firmographics (company size, industry, etc.)
• Purchase history
• You can then send targeted emails to each of these segments.

For example, if you have a segment for people who live in the United States, you can send them an email about a new feature that’s available only in the US.

Or if you have a segment for leads who are further along the SaaS sales funnel, you can send them emails with more aggressive sales copy.

This way, you’re able to send emails that are relevant to the interests of each segment, which can make them more likely to engage with your email and take action.

Use Personalization Tags

According to Mailigen, personalized messages can improve your click-through rate (CTR) by up to 14% and your conversion rate by up to 10%. And personalization tags allow you to personalize your emails so much faster.

Personalization tags are variables that you can insert into your email copy which will then be replaced with the appropriate information when the email is sent.

For example, if you have the personalization tag `[[FirstName]]`, it will be replaced with the first name of the subscriber when the email is sent.

This way, you can make your emails more personalized and improve your open rates, CTRs, and conversion rates.

3.) Email Marketing Helps You Stay Top Of Mind

When people unsubscribe from your email list, it doesn’t necessarily mean that they’re no longer interested in your SaaS product. They may just need a break from all the emails.

Or they may be busy with other things and not have time to read your emails right now.

However, you can still stay top of mind with these leads by sending them what’s called a “re-engagement” email.

This is an email that’s sent to subscribers who haven’t interacted with you in a while in an attempt to get them interested again.

For example, you can send them an email with a special offer or a case study of how your product has helped others.

This way, you can stay top of mind with your leads and subscribers, and be there when they’re finally ready to buy. This is also a great way for you to build brand awareness to your target audience.

4.) Email Marketing Works Wonders In Lead Nurturing

Lead nurturing is the process of developing relationships with your leads and moving them down the sales funnel. And email marketing can be a great tool for lead nurturing.

This is because you can use emails to send your leads valuable content that will help them at each stage of the buyer’s journey.

For example, let’s say you have a bunch of leads who are just starting to learn about your SaaS product. You can send them emails with helpful resources like blog posts, ebooks, or infographics that will educate them about your product.

On the other hand, if you have a lead who’s already familiar with your product but isn’t quite ready to buy yet, you can send them an email with a case study or a free trial offer.

This way, you’re able to send your leads the right content at the right time, which can nurture them and move them further down the sales funnel.

5.) Email Marketing Works Well With Content Marketing

Content marketing is one of the most popular marketing strategies for SaaS businesses nowadays. And the good news is that it synergizes very well with email marketing.

Content marketing is a type of marketing that focuses on creating and distributing valuable content to attract and retain customers. As we mentioned earlier, you can use it strategically to generate leads and build your email list.

But content marketing isn’t the only giver in this relationship. The benefit goes both ways. Email marketing can also boost your content marketing efforts.

How does it work?

For one, the most direct way is using email to promote your latest blog post, video, or other pieces of content.

Not only that, but you can also use email to send your subscribers exclusive content that they can’t get anywhere else. For example, you can send them an ebook, a video course, or a whitepaper.

This way, you’re able to promote your most recent post and give your subscribers exclusive access to valuable resources, which can help you build a better relationship with them.

6.) Email Marketing Drives Conversions and Sales

At the end of the day, SaaS businesses need to generate revenue to stay afloat. And an email campaign can be a great effort for driving conversions and sales.

Here’s how:

Use Email Marketing To Fuel Your Inbound Marketing Strategy

Inbound marketing is a type of marketing that focuses on attracting customers to your business through valuable content.

Sure, content marketing and social media marketing may be the best channels for attracting prospects and generating leads.

But it’s email marketing that brings home the bacon.

As we mentioned earlier, email is a powerful lead nurturing tool. But it doesn’t stop there. Email can be used to move leads further down the sales funnel, as well as make the home run in turning them into paying customers.

Use Persuasive CTAs To Make Subscribers Respond

A call-to-action (CTA) is an integral part of any marketing campaign, and email marketing is no exception, especially in a transactional email.

In fact, CTAs are essential in email marketing because they are what prompt your subscribers to take action. And when used correctly, CTAs can drive conversions and sales very effectively.

For example, if you’re promoting a new ebook, you can use a CTA in your email to encourage your subscribers to download it. Or if you’re running a contest, you can use a CTA to encourage your subscribers to enter.

If you’re using the right persuasive email copy, your CTAs can be very effective in making your subscribers do something in response, like signing up for a free trial or buying your SaaS product.

7.) Email Marketing Improves Customer Loyalty & Retention

When it comes to the SaaS business model, growth is not just about getting more customers. It’s also about keeping your existing ones.

In fact, customer retention is more important because it costs a lot less than the marketing and sales expenses that it takes to acquire new customers.

And email marketing can be a great tool for improving customer retention and loyalty.

Here’s how you can do it:

Use Email To Continuously Provide Value To Your Customers

The key to customer retention is providing continuous value to your customers. And email can be a great way to do that.

You can use email to keep your customers updated on the latest changes and developments with your product. You can also use it to send them resources that can help them get more out of your product.

For example, you can send them how-to guides, tips and tricks, case studies, or even just helpful articles related to your product.

By continuously providing value to your customers through email, you’re able to keep them engaged and loyal to your business. As a result, they’re less likely to churn.

Use Email To Build Relationships With Your Customers

Another way email marketing can help improve customer loyalty is by building relationships with your customers.

You can use email to reach out to your customers and get to know them on a personal level while providing bespoke customer success services.

This way, you can give them a human touch point in their interactions with your business.

By building relationships with your customers, you’re able to create a deeper connection with them. As a result, they’re more likely to stick around and continue doing business with you.

Send Reactivation Emails To Unhappy Customers

Customer retention is all about preventing churn. And one way to do that is by sending reactivation emails to unhappy customers.

Reactivation emails are designed to reach out to customers who have been inactive for a while and get them interested in your product again.

You can use reactivation emails to offer discounts, new features, or even just an update on what’s been going on with your SaaS business.

By reaching out to unhappy customers and trying to win them back, you’re able to reduce churn and improve customer retention.

8.) Email Marketing Is Easy To Automate

One of the best things about email marketing is that it’s easy to automate.

Email marketing automation allows you to focus on other areas of your business while still being able to effectively market to your subscribers.

There are a number of different email marketing platforms that offer automation features, like Mailchimp and HubSpot.

So what kinds of email marketing automation can you do?

Here are a few examples:

Triggered Automation

You can set up automated emails that are triggered by certain actions or events.

For example, you can set up an email autoresponder that instantly sends a welcome email to new subscribers.

Or you can set up an automated email to be sent when free trial users have done specific tasks with your SaaS product.

For example, let’s say you have a lead capture solution.

You could decide that most users see the value in your SaaS product once they have used it to generate at least 50 leads. At that point, they could receive an automated email that offers a paid subscription to your product.

Since they have just experienced the value of your SaaS solution through the free trial, they would be more likely to purchase a paid version.

Drip Email Campaigns

With drip email campaigns, you can automatically send a series of pre-written emails to your subscribers over a period of time.

This is great for building relationships with your customers and providing them with valuable information.

For example, you could set up a lead nurturing drip campaign that automatically sends a series of helpful emails to new leads. The order of emails could be something like this:

Email 1: Welcome email and introduction to your SaaS product

Email 2: Helpful tips and tricks in solving the target audience’s pain points

Email 3: In-depth tour of your SaaS product and how it addresses the subscriber’s pain points

Email 4: Demo or free trial offer

Email 5: Special offer for upgrading to a paid subscription

By sending helpful and valuable information over time, you’re able to nurture your leads and turn them into paying customers.

What’s more, you could branch out your flow depending on your subscriber’s behavior.

For example, imagine the subscriber clicks the CTA that offers a free trial. They proceed and then receive an automated email offering a paid subscription when the trial ends.

But if they don’t, the drip campaign could lead them through another branch where it sends more helpful content, such as case studies and product comparisons. The offer for the free trial could come again later.

This is a great way to ensure that your email subscribers are receiving relevant and valuable emails despite these messages being highly automated.

9.) Email Marketing Performance Is Easy To Measure

Another great thing about email marketing is that its performance is easy to measure. You can directly track various metrics that are important to your business.

If you are using an email marketing tool like Mailchimp or Campaign Monitor, most of this information is readily available through the platform’s reporting tool.

So which email marketing metrics should you track?

Email Deliverability Rate: Your email deliverability rate is the percentage of emails that are successfully delivered to your subscribers’ inboxes.

A high deliverability rate is important because it ensures that your emails are actually reaching your subscribers.

Email Open Rate: Your email open rate is the percentage of subscribers who open your emails.

This metric can be a good indicator of the quality of your subject lines and whether your subscribers are actually interested in the content of your emails.

Click-Through Rate: Your click-through rate (CTR) is the percentage of subscribers who click on at least one link in your email.

This metric can give you an idea of how relevant and interesting your email content is to your subscribers.

Conversion Rate: Your conversion rate is the percentage of people who take the desired action after receiving your email, such as subscribing to your SaaS product or signing up for a free trial.

This metric is important because it directly measures the effectiveness of your email marketing in achieving your business goals.

Bounce Rate: Your bounce rate is the percentage of emails that could not be delivered to your subscribers.

A high bounce rate can indicate that there are problems with your email list, such as outdated or invalid email addresses.

Just a pro tip – keep your bounce rate to a minimum. If internet service providers (ISPs) and spam monitoring networks see that you have a high bounce rate, that may affect your email deliverability in the future.

Spam Complaints: This is the number of people who report your emails as spam.

Like bounce rates, a high number of spam complaints can negatively affect your email sender reputation and may result in your emails being blocked by ISPs.

So these are some of the most important email marketing metrics that you should track. By doing so, you can measure the performance of your email marketing campaigns and make necessary improvements.

10.) Email Marketing Has A High Return On Investment (ROI)

Last but not least, email marketing is an extremely cost-effective way to reach out to your target audience. In fact, it has one of the highest ROIs of any marketing channel.

Compared to other marketing channels, email marketing requires a relatively small amount of money to get started. All you need is a computer and an internet connection.

Plus, there are many free or low-cost email marketing tools available that make it easy to create and send emails, automate your email marketing campaigns, and track your results.

So if you’re looking for a cost-effective way to reach out to more potential customers, email marketing is definitely worth considering.

Final Thoughts On Why Email Marketing Is Important For SaaS Businesses

Email marketing is a powerful tool that should be a part of every SaaS business’s digital marketing arsenal.

Your email marketing efforts can work wonders in nurturing leads, converting them into customers, and retaining your existing customers.

Plus, email marketing is extremely cost-effective and has one of the highest ROIs among the available digital marketing channels today.

If you’re ready to make the most out of your email marketing campaign, start researching how to do email marketing for SaaS businesses.

Looking for more guides and tips to help you grow your SaaS business? Visit our blog here.