SaaS marketing is different from traditional marketing, which you may or may not already be familiar with. With that being said, there are some key differences between SaaS and Traditional Marketing.
The strategy of your marketing in SaaS is going to need a new approach in order for it to be successful. By 2021, the revenue of the SaaS was expected to reach an incredible $113.1 billion. So, when it comes to perfecting the marketing of your business, it’s essential to get it right.
So, let’s look at some of the key differences between SaaS and Traditional Marketing.
1. SaaS marketing usually provides free products
One of the biggest differences between SaaS and Traditional Marketing is that with SaaS companies, free products are often provided even if you’ve no intention of purchasing them. Many of these services come with premium versions, which tend to offer more features that the customer might need.
Offering a free trial or free, basic version of the product hopes to entice customers to buy one of the premium options. In traditional marketing, you may get a sample of the product here and there, but it’s unlikely that you’ll get the product for free in most circumstances. Otherwise, the business wouldn’t be making any money.
Free trials, however, are different for SaaS companies because many potential paying customers want to try out the platform to see how well it performs. As these customers are more knowledgeable, they will also likely be pickier about which SaaS they choose to invest their money in.
Most SaaS companies will offer this nowadays, and it can often be provided in a number of ways, but the most common are:
Limited Free Trials
This will usually be anywhere from seven days to a month. Depending on the type of service being sold, there’s also scope to offer less time for the customer to try it out or more. Some SaaS may need more or less of a trial run to help formulate a decision on the premium versions.
You can also provide access to free resources like guides on how to use the product. It’s what some businesses will provide as a taster, and this will often be used in other industries, too. For instance, Skale’s guide to SaaS marketing gives an insight into the brand’s knowledge and how they can help the client get the most out of their marketing efforts.
Basic Access
Basic access is usually the platform’s bare bones, which might actually be enough for some customers. However, certain elements are likely purposefully missing to encourage the customer to pay for the premium option. Platforms like Asana, for example, provide a basic version and then various paid options.
In order for free trials and products to be effective, it’s important to deliver them correctly. For example, you want to ensure the customer gets a feel for the product but leaves them wanting more. There needs to be efficient onboarding so that the customer knows how to use the product in order to see its benefits. Reminding the customer of the benefits that await them. When purchasing a paid subscription, it is also critical that they don’t lose sight of where they should be heading.
2. The sales funnel is different
The sales funnel is a more specialized process than the one used for traditional marketing. Traditional marketing is made up of the following:
Awareness
The customer is made aware of the brand and what it is offering, whether that be a product or service.
Opinion
The customer forms an opinion on the brand as influenced by what they see or experience. This is a useful part of the process where marketers can positively influence their opinion.
Consideration
The customer considers the brand in comparison to other companies, weighing up the pros and cons.
Purchase
The final stage of the funnel is the purchase, and this is where a traditional marketing funnel would typically end.
The funnel begins with the discovery and awareness of the brand for the customer. From this sales funnel, a marketing team can work out where customers are in their journey. With that information, they can do what’s needed to push that customer further down the sales funnel. With SaaS marketing, there’s a unique sales funnel called the pirate funnel. The tunnel focuses on the whole lifecycle of the lead, both before and after the first purchase has been made. There’s more priority on not only generating a lead but retaining it also.
A lot of SaaS products rely on monthly payments or subscriptions, so keeping an eye on the customers’ happiness is important. The difference between a traditional marketing funnel and a SaaS marketing funnel is that there’s more focus on retention with SaaS rather than acquisition.
While customer acquisition for SaaS is still very important, retaining those customers makes a bigger profit. A SaaS sales funnel encompasses not just the traditional sales funnel but focuses beyond that initial transaction. It’s perhaps something that other industries should focus on when it comes to their sales and keeping customers loyal to the brand.
3. SaaS customers are more knowledgeable
The beauty of the internet is that it can be a great resource of knowledge. Most leads looking for SaaS already have an idea of what they’re after. They’ve done their research before they contact the sales team.
It’s been found that 48% of companies go for an average of one year SaaS contracts, so the need for them is certainly there. With traditional marketing, you may not have leads who are actively looking for the product or service you provide, and therefore, there needs to be more effort in acquiring the customers.
For SaaS marketing, the need to provide quality content and boost the reputation of the company is what makes this marketing successful. Having more of a spotlight online will help connect with those SaaS leads who are doing the research. The similarity between these two marketing methods is that customer service remains an important element of the process. Interaction and quick interactions will help influence the customer further along the sales funnel. For SaaS, there will be certain strategies you put in place in order to encourage the customer to purchase or at least try out the product you’re providing.
Customer service is critical because software is growing in the service industry. As of June 2020, there were a total of 15,529 SaaS companies worldwide. While that may seem like a smaller amount compared to other business industries, it’s one that’s very competitive and will only become more so as new SaaS companies pop up in the market.
Customers are more knowledgeable about SaaS products, which helps marketers focus on the overall customer experience. By presenting them with the best user experience, marketers hope to prevent them from exploring other options.
4. The sales lifecycle of SaaS is more unpredictable
Many SaaS products will provide their service in the form of a paid subscription. It rarely comes as a one-off package because if that were the case, it would likely be a more stable lifecycle when it comes to sales. With paid subscriptions that don’t have a contractual obligation to stay after the month is up, the lifecycle is more unpredictable. There’s no real guarantee that the customer is going to keep up with the monthly payments.
Selling SaaS also progresses slowly. First, you need to build a reputation for the brand so that it gets noticed and recommended from one customer to the next. The progress is also dependent on the customer’s business or individual needs for the platform. They may not need this immediate solution that the product provides yet.
That can make things difficult for SaaS marketing because it’s all about finding the right leads who are ready to be nurtured in order to invest in the product. Having a SaaS SEO agency can be helpful for spotting opportunities for growth and more successful sales. Eventually, sales will occur, but in relation to traditional marketing, it might be a more unpredictable cycle.
Focus on what’s important
SaaS marketing can require a more tailored and unique approach that may seem more challenging. However, with the right focus and attention, there’s plenty of space in the SaaS industry for more companies to exist and thrive. Be sure to make any changes or updates when necessary to keep the product relevant and, more importantly, a better choice in comparison to the competition that you’re up against.