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.

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