In today’s world, the modern consumer uses the convenience of a software service nearly every day. The Software-as-a-Service (SaaS) industry has seen a steady increase in demand– this is good news for consumers as we advance technologically. However, as the market becomes more saturated, so does the competition. SaaS market growth is expected to reach $208.1 billion in 2023!
Marketing plays a vital role in this highly competitive industry. It is necessary to sustain a digital presence to not only attract new customers but also retain existing ones.
This article explores six profitable marketing strategies to help SaaS companies stand out from competitors, attract new customers and drive sustainable growth.
1) Targeted Digital Advertising
Using the marketing budget for targeted digital advertising is never wasteful if done correctly! A highly effective strategy for SaaS companies involves creating and delivering tailored digital ads to specific audiences based on demographics, interests, behaviors, or other relevant criteria.
Targeted digital advertising is quite an effective tactic because you’re more likely to reach consumers interested in your software solution. It also decreases the odds that ad spend will be wasted on uninterested shoppers. Data management is crucial to audience targeting – tools such as browsing history, online activities, social media interactions, or behaviors allow for these personalized, targeted campaigns.
Key Benefits of Targeted Digital Advertising:
- Audience targeting precision
- Drive quality traffic that converts
- Track and measure results in real-time
For a more advanced insight into prospective customers, research different methods to find the right customized approach that leads your business to growth through increased sales and customer satisfaction while removing guesswork.
Resources such as Google’s In-Market Audiences expand your reach to consumers with previous search history correlated with what your SaaS company has to offer. LinkedIn’s Retargeting and Matched Audiences tools also provide the ability to reach highly targeted audiences as well to build your account-based marketing (ABM) campaign.
Programmatic Advertising is another digital strategy that uses automated media buying technology as opposed to traditional, often manual, methods so you can tailor-fit ads to your audience.
Programmatic advertising ultimately uses the algorithms from digital consumption to serve the right ads to the right audience, in the right place, and at the right time. Programmatic ads refer to how ads are bought, while display ads refer to how ads appear. Multiple platforms exist for programmatic, allowing advertisers to buy ad inventory across an open network of outlets offering advertisers efficiency, scale, and precision.
2) Content Marketing
Content marketing is an effective and cost-efficient strategy driving organic traffic, and its simplicity makes it a desirable investment. Whether you’re providing your audience with high-quality blog articles, ebooks, videos, webinars, or podcasts addressing the pain points of your target audience, the value of content marketing increases over time. Each piece of content is an opportunity to inform your audience about your services and entice them to take action, choosing your brand among the competition.
Key Benefits of Content Marketing:
- Increase brand visibility/awareness
- Cost-effective lead generation
- Improve search engine optimization (SEO)
- Thought leadership and credibility
This particular strategy generates leads organically – once quality content has been created and shared, there is no need to spend continuous funds, as PPC would require. Content always remains available to entice prospects over time as companies position themselves as industry experts and thought leaders.
3) Account-Based Marketing
Account-Based Marketing (ABM) provides SaaS companies with a strategic and personalized approach to target high-value accounts rather than casting a wide net.
The beauty of this particular tactic is the ability to identify the ideal target accounts and create personalized campaigns tailored to specific needs and pain points. With ABM, companies develop a deep understanding of their target accounts, build strong relationships with decision-makers, and deliver highly relevant content and offers, increasing the chances of conversion while improving customer retention.
There are 4 key success factors:
- Precise targeting
- Personalized approach
- Align sales and marketing teams
- Enhanced customer lifetime value (CLTV)
Choosing the right accounts that align with your ideal customer profile allows companies to optimize resources and increase the chance of reaching decision-makers with a higher probability of converting. It’s important to consider the buyer’s intent and past activity– or previous behavior– suggesting a possible desire for what your product or services provide.
You will want to know those accounts rather well. Understand them on every level. What do they desire? Why do they need you? Knowing the unique pain points, challenges, and goals of each account helps companies deliver highly relevant and personalized experiences, which leads to higher conversions and stronger relations.
ABM promotes the collaboration of marketing and sales teams, aligning their efforts to enhance lead quality and a faster, more efficient sales process. ABM is not only about acquiring new customers but also about nurturing and expanding existing accounts with personalized upselling, cross-selling, and ongoing support – driving increased revenue to improve overall CLTV (customer lifetime value). Finally, you’ll want to maintain data insights and assure what you are tracking is valuable to what you’re trying to achieve for current and future decisions.
4) Influencer Marketing
A commonly underrated but nevertheless powerful tool in B2B marketing is influencer marketing. The way influencer marketing is executed and its impact has evolved significantly with the advent of social media and digital platforms; the rise of platforms like Instagram, YouTube, TikTok, and others has given rise to a new generation of digital influencers who have amassed substantial followings and have the ability to engage and influence their audience.
SaaS companies can use this tactic to reach their target audience by working with influencers that complement them in their industry. Influencer marketing is a popular strategy that involves collaborating with influential individuals in the industry to promote your SaaS product. This can be an internal or external source.
Five Tips for Influencer Marketing:
- Set clear goals- be clear about your intentions
- Identify your target audience- understand where your audience is
- Choose the right influencers- select influencers that can complement your industry
- Create a partnership agreement- create an agreement between you and the influencer
- Track Results- track the data acquired to see where your traffic is originating from
SaaS companies can identify thought leaders, industry experts, or popular social media personalities with a relevant following and engage them to endorse their products or provide reviews. Influencer marketing can significantly increase brand visibility, reach new audiences, and build trust among potential customers who value the recommendations of influencers they trust.
5) Customer Retention Strategies
While acquiring new customers is important, retaining existing customers is equally crucial for long-term profitability. SaaS companies should focus on customer success and create strategies to nurture and retain their existing customer base. This includes proactive customer support, regular communications, and personalized upselling or cross-selling based on customer usage and needs.
Two of the most effective marketing techniques are referral marketing and customer loyalty programs. Referral marketing can contribute to customer retention efforts by leveraging the existing customer base.
Incentivizing and encouraging customers to refer their friends, colleagues, or business associates can strengthen a company’s relationship with current customers. When customers refer others to the SaaS product, it indicates a level of satisfaction and loyalty. Successful referrals can lead to increased customer engagement, higher customer lifetime value, and reduced churn rates, all of which are vital for customer retention.
Providing customers with opportunities, such as product trials, demos, or other special offers, are all excellent ways to entice customers to choose your brand. Presenting an incentive for a customer allows them to fall in love with your brand, ultimately proving your value, before committing.
Customer retention strategies are a sure way to acquire loyal customers. By delivering exceptional customer experiences and ensuring customer satisfaction, SaaS companies can reduce churn rates, increase customer lifetime value, and benefit from positive word-of-mouth.
6) Data-Driven Decision-Making
Understanding your data insights and using them to make informed decisions is essential to creating successful campaigns with desirable results.
Every B2B marketer understands the importance of research before launching campaigns to know what does and does not work. Comprehending your data insights creates an invaluable resource right at your fingertips. Understanding how customer insights affect marketing success can lead to an exciting outcome!
With a deeper look into your insights, you can more easily determine where the budget should be prioritized. . . otherwise, you could end up with an ineffective, costly failure.
With a highly saturated industry, it is important for SaaS businesses to continuously monitor and evaluate the effectiveness of these six profitable marketing strategies, adapting them to evolving market trends and customer preferences. By focusing on targeted digital advertising, content marketing, account-based marketing, influencer marketing, customer retention strategies, and data-driven decision-making insights, SaaS companies can achieve sustainable growth to thrive in a competitive landscape.
Looking for help in executing these strategies for your SaaS company? Your team of experts here at Maxamy is here to help you every step of the way. Book a strategy call today!