More and more companies are making the shift to subscription-based products. It is no shock since it has a lot of benefits, from counteracting piracy to the ability to provide frequent updates for the benefit of the clients. However, it is not all sunshine and rainbows. One aspect that has significantly gotten more difficult is SaaS marketing.

SaaS Marketing vs Other Types of Marketing

SaaS marketing is not like any other type of marketing approaches. So, if you think you are good with business, you might want to reconsider when it comes to SaaS. You will be greeted by a variety of challenges.

1.     No Physical Product, No Assurance

When you are selling an actual product, it is easier to provide assurance to your client with what they are getting. So, when it comes to SaaS in which everything is in the cloud, it gets a little difficult.

You need to convince them that they are going to receive what they are paying for. That it is not going to change down the road and that it will consistently function as it is intended.

2.     It’s a Monthly Subscription

Between paying a one-time price and a monthly subscription, most people would rather prefer the former. At least they only have to make one purchase and it is finished. Having a monthly subscription, on the other hand, gives clients something to think of.

Additionally, a monthly subscription raises the question of economical viability for some, especially if they intend to use a service long-term. So, the challenge is to prove to them that a monthly subscription is better over a one-time purchase.

3.     SaaS Marketing: You’re Selling a Service, Not a Product

From the name itself, you are no longer selling software as a product, but as a service. You are no longer providing a one-time product, but something that you constantly provide down the road. What that means is that your clients are constantly reaching out to you. So, they need the assurance that your SaaS is not just great, but your brand as well that you will be able to keep quality assistance down the road.  

In short, you shouldn’t just be selling the service itself, but the reliability and trustworthiness of your company as well.

How to Do SaaS Marketing

The new challenges you face with SaaS marketing shouldn’t hold back your success. While they may be difficult to overcome, it isn’t impossible. You just need to be creative and efficient. If you have no idea where to begin, here are some ideas to get you started.

1.     Don’t Hold Back on Free Trials

One of the greatest hurdles you have to overcome is gaining the trust of your client. You don’t have an actual product they can check or the assurance that it is not bound to change for the worse, so the least you can do is get them comfortable with your service.

How do you do that? The answer is simple, allow them to have some time with it. The more they use it, the more comfortable they get. Before long, their doubts are drowned by the performance satisfaction they are getting.

2.     Focus on the Benefits

When talking about the cloud, there is only thing that crowds the minds of your clients, it is the disadvantages of the technology. They will be constantly asking about what happens if there is no internet or when your server is down. They will never look at the good side of things, so make them realize about that end.

Skip the technical aspects of what the cloud is and how great it is. Instead, focus on the benefits. What having a cloud-based service mean compared to a one-time purchase and how much better it can improve their business.

Talk about the constant updates that will continuously improve their experience down the road. Mention how the service will change alongside ongoing demands and trends. When talking about the benefits, there surely are a lot, so make sure to drown out the concerns of your clients to secure SaaS sales.

3.     Emphasize on Cost Efficiency on Your SaaS Marketing

In reality, a subscription-based service is neither better nor worse than a one-time purchase. It all boils down on the needs of the client. If they intend to use it long-term, then there is the potential of having to spend more. On the other hand, subscriptions allow clients to pay only for what they need. Therefore, providing them with better financial flexibility.

4.     Remind Them It’s Not a Long-term Commitment

If your client is hesitant about making the leap, remind them that it isn’t a long-term commitment. They have the option to pay for a month or two and eventually leave when it doesn’t live to their expectations. In the end, they only end up spending a small sum of money which is only a small risk on their end.

5.      Get Feedback and Act

Selling is a service is a constant pursuit and effort. When someone has made the subscription, there is a high chance that they will stay by your side, but it is not a guarantee. They still have the opportunity to get up and leave when they are no longer happy. So, the challenge here is finding ways to keeping your clients subscribed to your SaaS.

What you want to do is get their feedback. If there is one thing that makes clients feel involved is that their opinions are asked and considered. In addition, when they get to see the improvements they want, it assures them of a brand that will consistently provide for their needs.

Never doubt feedbacks and response. It is a core principle in inbound marketing which emphasizes how effective it can be in all forms of marketing approaches.

Important SaaS Marketing Metrics to Review

Don’t just keep on fueling your marketing efforts. Also keep an eye on key metrics to determine the success and progress of your marketing. Here are what you should regular review to know what marketing approaches to continue, improve, and halt.

1.     Customer Attrition

How long did a customer do business with you before they left? If it starts to become a trend that at an average of 5 months clients tend to leave your SaaS, then it is telling of a much bigger picture. This is what is called customer attrition, the period that it takes before a customer leaves.

It is one of the more important key metrics to pay attention to since a subscriber should have the tendency to stick to your service. Therefore, it is much easier to keep a client than it is to acquire new ones.

2.     Customer Lifetime Value

How much did a customer spend throughout their entire stay with your company? The answer is your customer lifetime value. It is important to determine the average amount of money a client spends on your business since it will give an estimate on how much you should be spending on acquiring customers.

3.     Customer Acquisition Cost

It is how much you spend to acquire a new client. For example, if you spent $500 on marketing approaches and gained 2 new customers, your customer acquisition cost is $250.

It is important to put into perspective how much you are spending per new customer. Otherwise, you might end up spending more on marketing than you are actually earning.

4.     CAC-to-LTV Ratio

Lastly, you are going to want to compare the money you spent acquiring a customer and the average money they contributed to your company during their stay. The bigger the margin, the more revenue you gained from them.

Is SaaS Marketing Really Difficult?

While there may be more challenges that you have to face and overcome with SaaS marketing, it really isn’t all that more difficult. As long as you perform the right approaches and provide solutions customer concerns, it can be just like any kind of marketing.

However, that doesn’t mean it is completely easy. You still have to have a plan, implement your solutions, and then monitor key metrics. As a business owner, it will still take up a chunk of your schedule. If you really want to take the easy route to success, what you need is the assistance of the best digital marketing agency. Contact us today to get a free strategy consultation.

At some point in your Saas sales, you are going to find yourself on a stump. Low lead generation and customer conversion. It is a common thing, but don’t get too disappointed because that is the challenge with Saas. Conventional marketing strategies don’t work with them and their sales life cycle is much more complex and erratic. That doesn’t mean that you should just settle with these results. There are ways to work around these hurdles and achieve success. As a matter of fact, 10 of them.

1. Keep Your Trials Short For Increased Saas Sales

The tip speaks for itself. Extensively long trial periods for Saas causes customers to procrastinate. The more they put learning the service on hold, the more likely they are going to forget. As a matter of fact, on average, most people immediately leave after using your product in less than three days. 

The key here is to decrease your trial period. Your free service should not be more than 14 days. With this, your potential customers are much more likely going to treat the trial period more seriously. You are urging them to learn it as soon as possible, preventing them from forgetting that it is there in the first place.

2. Faster Saas Sales Through Lower Customer Acquisition Cycle

They always say that be persistent on a potential client. While that may be true, learn to close a deal as soon as possible and know when to cut your losses. Not everybody you come across with can be a potential customer that you can persuade into using your Saas. 

When setting your acquisition period, set a maximum of three weeks. Anything beyond that is a guarantee that they have no interest and are not likely to acquire your Saas. Instead, immediately move on to a different potential client. 

3. Persuade in the Least Time Possible

Every sale capitalizes on persuasion. Consistent efforts to get a potential customer to look at your product increases the chances of Saas sales. However, keep in mind that you don’t have forever.

Keep your persuasion period short. The less time you allot and the more comprehensive you are with your convincing, the more likely for a client to understand what you have to sell. Most of the time, an extensive sales cycle period can cause cold feet on the side of the customer. So, secure Saas sales as soon as possible.

4. Retention VS Acquisition

Your existing customers are as important as your new ones. So, don’t ever forget about them. Even if they are paying for your services, there is no saying when they will decide to stop. Always keep an eye on them and work on retaining their subscription. 

As a Saas company, listen to their demands and suggestions. They are going to voice out new features they want and improvements. Even the slightest cosmetic change can make a huge difference in the satisfaction of a user. A company that learns to value and provide to its customers cannot be beaten no matter how great the offerings are from the competition.

5. Engage! Ask For Feedback and Ask How are Things Going.

Making Saas sales is not just about marketing the features of your product. Don’t settle with just that. Most likely, your potential client knows what you have to offer especially if they are already using the trial period. What they want is somebody who is following up in their progress.

Engage with your potential customers. Ask them for their feedback and how things are going. Don’t forget to check on them if they have questions or aspects they don’t understand. Most of the time, there are things they can’t seem to find or comprehend. Being that helping hand will allow them to use the Saas to its full potential and ultimately see its entire worth.

6. Boost Average Revenue Per User

As a Saas company with more than one product, always offer new services to existing customers. If one already has a subscription for product A, constantly email and offer products B, C, and E. 

Already seeing their activity, you already know which new Saas they are likely going to be susceptible to. Marketing is also going to be relatively easier as they have a higher affinity for a company they are already associated with. While this may not count as generating a new customer, you are increasing revenue per user.

7. Improve Your Email Campaign to Increase Saas Sales

Your emails are going to be what’s going to remind your potential customers that you exist. If your emails are not being classified as spam, you are doing it wrong. The more you send, the more you remind and persuade your potential client into Saas sales. 

While it may seem intrusive and ineffective to send nonstop emails, it actually isn’t as long it is of value. Use an email that is named under a person instead of a department. When you give the impression to a potential client that they are in contact with a person, the more likely they are going to engage and give the email attention.

8. Saas Sales are Dependent on Activity-Based Emails

While flooding your potential clients is a great start, also make sure that your emails lead to something bigger. Always attach some sort of call-to-action. Link a form where they can start the free-trial, a page where they can learn more, or better yet, where to contact for a more specific quotation.

Your emails are not going to have an impact on your sales if it is just going to be informative. You must urge them to act on your offer by making it readily available to click.

9. Understand Your Customers

A person that has no intention of subscribing to your service is going to look and sound the same as someone who just needs persuasion. There is no way to differentiate the two. However, you can narrow it down simply by understanding them. Find an avenue to be able to connect with your potential customers. Call them and beat around the bush on what kind of customer they are. 

When you learn which ones have potential, you are able to concentrate your resources effectively. You are able to provide what a client wants to hear that will ultimately convert their interest into Saas sales.

10. Never Devalue Your Worth

Discounts, lowering your prices, and promos. These are just some of the commonly practiced ways to invite potential customers. While it may seem logical, it is not as effective as you would think. Value is determined by what you provide, not how you price it. Put a proper price on your Saas and sell it that way, never devalue yourself.

Have you ever wondered why luxury brands are still at the top despite being very expensive? Because they know their market and their worth. Remember that the people who use Saas are ones that are already in the market for it. They are willing to pay a price. They are not looking for the cheapest, instead they are searching for the best. Bringing down your price will only devalue your brand and raise questions on the confidence of your services.

In conclusion

Definitely, some of these tips are contradictory to conventional marketing strategies with retail products. That is the reality. Saas are quite different from other industries. The product doesn’t sell itself and the customers are a niche. To say the least, it is not the easiest task to achieve Saas sales. As a matter of fact, companies hand over the responsibility to Saas sales representatives.

There are two ways you can approach Saas sales, either you do it yourself or take the easy road by looking for the best online marketing agencies. Contact us today for a free strategy consultation.