Build a Standout SaaS Marketing Strategy in 2024: Tips for Accelerating Growth

More than 40 tips for gaining traction in today’s crowded marketplace

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How to Build a Standout SaaS Marketing Strategy: Your Complete Guide Pillar
Introduction

SaaS is a growing field that is constantly evolving. With rapid changes and continuous innovation of business models come new product application scenarios and opportunities.  

To reap the rewards, SaaS companies need a marketing strategy that will help them flourish in the competitive landscape. A digital marketing plan should be based on a carefully crafted strategy, proven techniques, solid metrics, and industry best practices. Marketers must adapt to the constantly changing trends— falling behind the curve isn’t an option in such a fast-paced market.  

We’ve created this guide to walk you through the most important considerations for SaaS companies who want to stand out from the crowd.  

 

How to Build a Standout SaaS Marketing Strategy: Your Complete Guide

 


1

How is Marketing for SaaS Different? 

It’s no secret: SaaS marketing is different. For one thing, the buying cycle is typically short. And there’s also the risk of churn, the dynamic of no physical product, and a crowded and rapidly evolving competitive market.  
 
With the right SaaS marketing strategy, you’ll be able to gather a lot of data about your prospects and customers. Although that’s also the tricky part. Data can be overwhelming if you’re not sure how to use it. As Neil Patel puts it, in SaaS marketing, “Your greatest asset is your information.”   
 
Leveraging the power of data can help you craft a solid marketing strategy, pivot as necessary and, ultimately, send your marketing ROI skyrocketing. 
 
But first, you’ll want to be sure you’ve got a firm grasp of SaaS marketing trends.

Neil Patel Quote - Your greatest asset is your information

6 SaaS Marketing Trends Software Marketers Can't Ignore

Vertical Expansion

 

Spending and Vertical Expansion

As you focus on increasing sales, it’s important to determine which niches your company is focusing on, if you haven’t already. Horizontal SaaS focuses on clients across any sector and industry, but Vertical SaaS is thoroughly customizable and aimed at clients within specific industries and supply chains. The industry is heading toward vertical expansion. For marketers, this is an important takeaway, since it’s a driving factor in the market. 

In fact, 99% of companies will be using at least one SaaS solution by the end of 2024. And it's not just large companies utilizing SaaS products — smaller businesses are signing up without hesitation, be it a CRM, email marketing tool, or automation software. Still, for larger enterprises, SaaS continues to be a go-to choice for keeping projects and employees on schedule, both individually and collaboratively.  

Artificial Intelligence

 

Artificial Intelligence (AI)

This is not one of the new SaaS marketing trends. These days, artificial intelligence (AI) and machine learning (ML) have tremendous applications for SaaS marketers, according to Forbes. This article explains that “Several elements of SaaS businesses, including customer relationship management, marketing automation, product development and personalization, can benefit from AI and ML.” 

Marketers must realize that it isn’t just AI-based SaaS platforms that can benefit from more automation and machine learning. AI can be a useful tool for marketers as well. Here’s how:

  • Using an AI chatbot in your SaaS site can streamline the user experience. For instance, it can help provide basic customer service and answer common questions 24-7, easing the strain on your existing workforce. 
  • AI is adept at delivering predictive analytics. The technology can analyze data and make predictions to help tweak and optimize your company’s marketing processes. One of the values of SaaS is the degree of customization and user-friendliness users expect. AI really flexes its power here by allowing platforms to tailor the experience to each individual customer. 
Be sure you highlight the power of AI, showing potential customers the value that it brings to your service every chance you get.

The Free Model

 

The Free Model

Offering a free trial has become one of the commonplace SaaS marketing trends in the SaaS marketplace. In fact, 44% of SaaS companies offer a free trial. Others offer variations such as freemium models and limited free versions. 

Trials allow your visitors to try the product without feeling pressured to make a purchase. It serves to remove the friction and gently nudge them toward buying: research shows that, on average, one in four uses of a free trial will convert to a paid subscription. 

Let’s examine some of the advantages of a free trial: 

  • You can reach more buyers. Free trials allow you to show customers first-hand what you can deliver while building closer relationships.  
  • You get valuable feedback. You can ask users to give feedback and tips on how to improve.  
  • You gain a ton of qualified leads. After using your platform for the duration of a trial, your leads are as qualified as ever.  
  • Conversion rates are impressive. In general, free SaaS trials yield a 15-25% conversion rate, and the best ones can result in a monumental 60% rate. 

While there are many ways to offer trials, your product and customer knowledge should determine your choice. Whatever route you go, these ideas can help your strategy be successful:   

  • Drop the credit card requirement. Allowing trial sign-ups without a credit card generates twice as many paying customers. 
  • Don’t forget to follow up. After the free trial expires, that’s your cue to get in touch with the user. 
  • Make sure the timeframe is right. The industry preference for this tends to vary widely. Try using an A/B test for varying lengths to understand the sweet spot. 
New Pricing Strategies and Payment Models

 

New Pricing Strategies and Payment Models

Pricing models in the SaaS space change more than the weather. However, there’s a growing surge in usage-based pricing, sometimes called “pay as you go,” according to DevTeam.Space. The good news? By employing this type of outcome-based pricing, you can grow your SaaS business significantly. 

Whatever method you choose, revisiting and updating your pricing model is a good idea—one which usually yields consistent growth. Because SaaS pricing is not a one-size-fits-all system, conduct your own research to discover the optimal model for your service.

Customer Approach is Changing

 

Customer Approach is Changing

SaaS companies are shifting how they think about their customers. Today, it’s not just about attracting and converting leads: increased attention is put on retaining them. 

That’s because constantly having to locate new customers is a huge drain on resources. Plus, it’s much less strenuous to focus on impressing the ones you already have and building strong relationships. 

Try to make things as simple and rewarding as possible for users. That means lots of ongoing education and support and continuing to deliver value long after they’ve signed the contract. Being available to walk customers through processes and troubleshooting whenever needed will go a long way toward building loyalty and reducing churn.  

Mobile Functionality

 

Mobile Functionality

Currently, reports indicate that “there are 6.84 billion smartphones globally. Around 91% of college graduates own a smartphone. 50% of US citizens spend about 5 to 6 hours on their smartphones per day as of 2024.” 

Therefore, mobile functionality needs to be prioritized for SaaS products. It’s a given that marketers need to show their potential buyers that software will work smoothly on a phone as well as a laptop. 

4 Rookie Marketing Mistakes SaaS Startups Make

Remember that all marketing mistakes are reversible. But knowing which pitfalls to avoid can save you a lot of headaches.

Cutting Corners on SaaS Marketing Strategy

 

Cutting Corners on Your SaaS Marketing Strategy 

Even the best products and services that are one-of-a-kind in your space need a solid marketing strategy. While word-of-mouth is best in the marketing in the world, the problem is that people just don't "talk" all that much anymore. 

The new normal, post-pandemic onset is driven by online sharing. Capitalizing on this influence requires deliberate planning, so you ensure people have something to share or pass on when they're singing your praises.

SaaS Marketing Content Without Purpose

 

Creating SaaS Marketing Content Without Purpose

Did you know that content is becoming even more important to B2B buyers? Search Engine Journal reports that a B2B Content Marketing Study conducted by CMI found 40% of B2B marketers have a documented content marketing strategy; 33% have a strategy, but it’s not documented, and 27% have no strategy whatsoever. Meanwhile, Google continues to dominate search engine use, with an 82% percent market share of desktop searches in December 2023.

You’ll need clearly mapped relationships between every piece of content you post and share. Taken together, different types of content can help you cast a very wide net.

And you’ll want to be sure that your content is SEO-optimized. Gone are the days when old-school web crawlers cared only for keywords and phrases. In this era of super sophisticated algorithmic machines, content must have context and demonstrate expertise, authoritativeness, trustworthiness, and experience according to Google’s EEAT update. This means you’ll need to connect to other pieces of content to build a story that leads to a killer landing page. Think of it this way: Every single piece of content you share needs a clear purpose.

Not Using Data to Drive Decisions

 

Not Using Data to Drive Decisions

We get it. The mounds of data available to your business can be overwhelming. And interpreting it can be a major drain on your time. But it’s worth it: analyzing metrics is essential to learning how website visitors interact with your content — what to dial up and what to dial down. If you don't tune in to data, your efforts are likely to miss your target.

Not Understanding Your Target Market

 

Not Understanding Your Target Market

This is arguably the largest of the inbound marketing mistakes — not knowing your target customer inside and out. People can need a lot of handholding, which means you’ll need a lot of bottom- and middle-funnel marketing to land the sale.  

How do you get to know your customer? Start by getting personal with the people who currently use your product — as well as the ones who stopped using it — so you can learn directly from the source.

Now that you know where the market is headed and which marketing mistakes missteps to avoid, it’s time to start talking strategy. 

Understand where the market is headed

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2

Building Solid SaaS Marketing Strategies

You’d never build a house without a blueprint. To build a solid SaaS marketing strategy, you’ll save yourself both time and money by laying out your plan first. 

SaaS Marketing Best Practices

SaaS marketing follows the same basic rules as any other type of marketing. While you’re selling a product to a business, you’re still ultimately appealing to the interest of another person. The goal is to get businesses interested in your company’s product and service. 

4 Steps to Building a Successful SaaS Product Marketing Plan

  Step 1    Preparation

Keep in mind that you’ll save yourself both time and money by doing your research first. You need to be crystal clear about who your product is aimed at (otherwise known as your buyer personas) and your USP (the Unique Selling Point for your product — key aspects that make it essential to your target market). 

  Step 2    Acquisition

The next step in your product marketing plan should be determining how to drive traffic to your website. There are many ways of doing this, but for SaaS products, one method is consistently effective — content marketing.  

  Step 3    Conversion

Once you’ve captured your leads, you’ll also need a plan for how to convert them. In SaaS product marketing, this is a two-stage process — firstly, you will probably want them to download a free trial, and secondly, you need to transform them into fully “monetized” paying customers. Your product marketing plan should include a plan for how to move leads through your sales funnel. 

  Step 4    Retention

One of the most important differences with SaaS marketing is that retention is on the same level as acquisition. Your SaaS product marketing plan must therefore include a final step — considering how you’ll retain your customers, upsell and cross-sell other products, and make sure that you continue to delight them over the long haul. 

10 Tips for Building a Standout Strategy

A solid SaaS product marketing plan must consider the full customer journey, from awareness to conversion to retention and/or upselling and beyond.  

  1. Understanding Buyer’s Journey

    You have to know where to find your customers and how they’ll respond to your offerings. In the B2B arena, it’s a person or team who is searching, not an abstract entity. The buyer’s task is to find a vendor who can provide a solution to a pain point within their organization. As they move through the process from researching to decision-making, the buyer’s journey allows them to connect with you at a human level along the way.  

    Keep in mind that digital tools have changed the balance of power between buyers and sellers. The buyer now has a more active role; they reach out to search for solutions that solve problems for them. 

  2. Understanding Buyer Personas

    Understanding Buyer PersonasYou can only attract the right kind of customers if you know what “right” means to you. To fully grasp the buyer’s journey of your customers, you need to know them on a personal level. To create accurate buyer personas, you have to acquire reliable data.  

    This means gathering data by examining real customers and prospects. Consider their challenges as well as their motivations. Surveys are a great way to research your customers while also offering them a chance to provide feedback. Social media pages and forums can provide a wealth of data, too, if you know where to look. And, of course, there’s the tried-and-true method: Interview previous customers. Just don’t shy away from the dissatisfied customers— sometimes they can supply the most meaningful insights.

    Once you begin to attract traffic and engage with your audience, you can serve them targeted content that will add value and keep them digging into your site for more. 

  3. Defining Your Unique Selling Proposition (USP)

    When you’re defining your product’s value to your customer — try understanding how the customer is trying to make progress or what problem they are trying to solve — in other words, why they “hire” your SaaS product to do the job. If you have a clear idea of what job your customer is trying to do with your product, you’ll be much closer to articulating your USP, which guides you to develop content that resonates.  

    It’s helpful to think of this in terms of a “hero statement.” This statement is a simple phrase that outlines the customer you serve and the value you give them. An example of a hero statement for a healthcare SaaS product could be:  

    My SaaS company is a hero to small ambulatory care centers who struggle to meet scheduling goals
    As a bonus, this knowledge will also help you to continue to develop key features to enable them to get the most from your product. 
  4. Defining Your Content Core

    Every good marketing plan should incorporate how to drive traffic to your website. While the avenues are many, content is a consistent way to get the right audience to your page. To accomplish this, make sure your content is engaging and clear — it should connect the dots between the value your business provides and the most pressing issues your customers care about.  

    When your content core addresses target customers with laser-like focus, your site becomes a trusted authority, and you’ll bank important credibility in the marketplace. For example, in the previous healthcare SaaS example, the content core would be how sharing data to track patient scheduling can improve efficiency and boost profit.

  5. Choosing Your Channels

    Creating relevant, valuable content is a great way to attract leads to your website — but to get your content in front of your target customers, you’ll need a plan for promoting it as well. Will you publish it via social media? If so, which channels are most widely used by your customers? Will you create videos and upload them to YouTube? Would a podcast be more helpful? You may want to run some A/B tests to figure out which channels perform best for your market.   
  6. Building an Email List

    Building an Email ListYou might be surprised to know that email marketing is still one of the most effective ways to qualify leads for SaaS customers. Creating an effective email strategy should include offering qualified prospects content with unique value. For instance, gating content, also known as requiring prospects to provide an email address and other personal details to access premium content, can be successful for growing your subscriber base.
  7. Attracting Leads

    Before launching a marketing campaign, you’ll want to consider how well prepared you are to propel them through the sales funnel. In other words, what systems do you have in place to attract leads, convert leads, and retain them? Here are some helpful tips.

    To attract the right interest, be sure that you start off with a strong foundation of search engine optimization. Building your website and content on relevant, well-targeted keywords is a process. Diligent planning involves identifying the terms your target customers are looking for and investigating the keyword terms your website is already found for. A web analytics tool such as Google Analytics can provide insights that guide your SEO optimization strategy. Also, don’t forget to consider other factors that will make your website perform well on search engines — page load time, internal links, and the use of titles and descriptions.  

    Still, your SEO optimization depends on having strong content. Fortunately, SaaS marketers have a unique advantage in content marketing. By the very nature of your product, you have access to a wealth of data that you can convert into helpful content — think white papers, infographics, blog posts, webinars. You’ll build authority and credibility.

    Don’t forget the power of referrals. HubSpot calls referrals “one of the most effective types of leads.”  It’s true that nothing builds trust in a product more than knowing it is already being used by someone we know personally. Be sure to make it simple for satisfied customers to pass the word on. First off — don’t underestimate the power of just asking. And consider adding a landing page on your website where people can refer others or including a referral-focused call to action in the software itself.  

  8. Converting Leads

    Converting LeadsEven when you’ve diligently prepared to attract leads to your website with compelling SEO-optimized content, you’ll want to consider using retargeting to entice the ones who have visited your site to return. Retargeting means that you track who visits your website, and then show them online ads on other sites they interact with. A digital marketing agency can assist with this and customize your ads.  

    Many SaaS companies employ free trials to assist with converting leads. To maximize your product trial conversion rate, try following up trial sign-ups with training support in a phone call, webinar, or email series. Some companies restrict features to simplify the experience. Leads who are demo-ing your software are showing a clear indication of purchase interest, so make sure that anyone using the demo finds it effortless to click the “Buy” button at any stage during the trial. This may mean spending the time to optimize your buy page.  

  9. Retaining Customers

    With SaaS marketing, retention should be as much of a priority as acquisition. Understanding how you’ll retain your customers, upsell and cross-sell other products by continuing to delight them over the long haul is just good business. The longer a paying customer stays subscribed to your services, the more profitable the relationship. Therefore, it's important to include customer loyalty, advocacy, and retention as your content marketing objective.  

    Exclusive content, such as a resource library, how-to training, webinars, and in-person events can help you deepen the customer relationship. And in-depth training to help users execute best practices can encourage subscribers to keep using your application. But even with the best intentions, every company still experiences customer churn. But take heart, even this experience can be used as a chance to gather useful information. Be sure to figure out why people leave to learn where you can make improvements.   

    Retaining CustomersMost importantly, keep marketing your software after a sale is closed. This might mean by sharing use cases, case studies or testimonials via email, or by organizing meetups for users to engage with your company (and each other) in person.  

  10. Customer Support

    This may go without saying, but you should consider customer support to be a part of your marketing plan. One way is to make support easy to find, easy to use, and available across multiple channels with tutorials and FAQs that will make your customers’ lives simpler. Sprout Social advises using social media for customer service — for instance, offering customer service hours on Twitter, or sharing answers to common user questions in your social media posts.  

How to Improve Your Software Marketing Strategy 

One point we can’t emphasize enough is the potential that the inbound marketing methodology holds for marketing your SaaS offering. Think of your inbound and content marketing strategies like a buffet — consistently providing a diverse offering will yield benefit. According to reports, B2B buyers now consume at least 13 pieces of content before making a buying decision.   

With an inbound marketing strategy, gathering data and adapting your content becomes an essential and continuous process. After all, industries and customers change.   

Measuring the right content data will help you improve accuracy over time and alert you when the next round of changes hit. But suffice it to say that the key to building a community, or finding the right one, depends on how well you measure and adjust your strategy to develop inbound marketing that resonates.  

Having said that, your marketing strategy can take you only so far. As a SaaS company, your No. 1 concern has to be creating a product that is 100% technically sound and one that people love to use.   

Once you have a sound plan for strategy, it’s time to consider which marketing tools will best suit your purpose.

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3

Best Marketing Methods for SaaS

As we’ve established, content is a core feature of digital marketing, and SaaS marketing is no exception. That’s because it draws customers in, builds trust, and guides them toward buying your service. In fact, educational content that works will drive more traffic to your website. When your traffic increases, your users will become more interactive with your site, which can increase the chances of conversion on site. (e.g., company news, product launches). 

How to Make Your SaaS Content Marketing Strategy Stand Out

Keep in mind these best practices for your SaaS content marketing strategy:  

  • Deliver real value.

    Your visitors should learn something practical. 

  • Make it scannable.

    The person’s average attention span is about 3 seconds. 

  • Link to authoritative websites.

    This helps your site appear more reliable. In addition, make sure to link internally to other pages on your site. 

It may also be useful to put yourself in your customers' shoes and consider the information they need. For example, how easy is it to find your free-trial sign-up or watch a demo video? To effectively progress your audience down the purchasing path, don't forget to include a call-to-action (CTA) in each piece of content.

SEO Optimization

Google now processes 5.9 million searches per minute, which is roughly 8.5 billion searches per day. That’s a lot of searches that you have an opportunity to cash in on if you have solid search engine optimization (SEO). So, it should be no surprise that 80% of CMOs still say they will maintain or even increase their SEO budget this year. 

SEO is a crucial tool for building and marketing websites and content. If your site ranks in the top pages of Google (and other search engines), you’ll succeed at attracting visitors organically. Getting started takes time — and research to implement the keywords and phrases that your customers tend to search for, but there’s much more to learn.   

You'll want to develop your SaaS content marketing strategy with user intent in mind. High-volume, short-tail keywords are competitive and may not be the best bet for attracting traffic that is most likely to convert. Target long-tail keywords or phrases that prospects would use when looking for the exact products or features you offer. 

Video Marketing

You may have found that it's becoming increasingly challenging to capture your audience's attention and drive conversion.

Video marketing has skyrocketed among SaaS marketers and for excellent reasons:  

55 Best Ways to Use SaaS Video Marketing 

Here are the five most effective uses of video: 

  1. Demo/Explainer Videos

    Your demo videos should be succinct and engaging since videos under 2 minutes get the most engagement. They should speak to your audience's challenges and highlight critical benefits that are most appealing to your target market. In fact, 96% of people have watched an explainer video to learn more about a product or service. 
  2. Case Studies & Testimonials

    To create compelling videos for case studies and testimonials, you should tell a meaningful story (e.g., "before" and "after"), highlight results with specific metrics, add text or graphics to emphasize key points, and edit the footage to create a focused piece that keeps the audience engaged. Social proof has been proven to boost conversion rates. 
  3. Social Videos

    In particular, LinkedIn videos are highly popular among B2B buyers. They can help you reach a larger audience, deliver targeted messages, generate more leads, educate prospects about your products, and grow your revenues. To increase the effectiveness of your social videos, try posting native videos to your newsfeed. Be sure to use the right hashtags so as to increase visibility, grab viewers' attention within the first few seconds, optimize the videos for mobile, and get the point across without sound. 
  4. Customer Support

    Video provides your customer service team with a chance to quickly share links with users to answer their questions, facilitate troubleshooting, and streamline the support experience to improve customer satisfaction while lowering costs. 
  5. Expert Interviews and Trending News

    Webinars or live streams (e.g., LinkedIn Live) are great formats for long-form content. Don’t forget that you can use videos for event promotion and recap to drive traffic back to relevant landing pages for lead generation. You can also turn the event recordings into evergreen video content to get the best ROI. 

SaaS Website Management

Also important is designing websites based on a data-driven approach. This method takes the guesswork out of the equation when developing a new site. With a minimalist and data-driven approach, you can measure user response (such as bounce rates, exit rates, and traffic) and make changes accordingly. The end result? Websites that are quicker to launch, more cost-effective — and ultimately — more successful.  

Must-Have Elements for Every SaaS Website

Must-Have Elements for Every SaaS WebsiteA significant part of marketing these days is concentrated on bringing potential customers to your company’s website. But that effort is wasted if they don’t feel positively reinforced for visiting. This means creating balance: the right combination of elements, compelling content, an intuitive and inviting design, and a solid strategy for maintenance, evaluation, and revision.  

As such, a guiding principle of website design should be customer experience. Determine the elements that will visually appeal to your audience, the type of experience they enjoy, and how to optimize your SaaS website for more conversions. This might take some A/B testing, but the results will be worth it.   

Driving visitors to sign up for a free trial should also be a top priority for your SaaS website. It’s best practice to add banners with a clear call to action (CTA) encouraging sign-ups on every page of your website, including your blog posts. 

Marketing Tools That Can Help SaaS Marketers

Email Marketing

Did you know that email remains one of the top methods for B2B marketers to generate demand because of the high return on investment it provides? Here’s where you get the benefit from all those emails you’ve been collecting with your gated content. Email marketing funnels can be a great way to build a relationship with a lead and persuade them to try out your free trial or connect with a sales rep.  

Strong targeting is the backbone of an effective email campaign. Your marketing platform can be a big help in managing this important marketing tool. You’ll want to segment your email lists by persona or by the point recipients have reached in the buying process – leads, new customers, longtime customers, etc. Marketing agencies that work with Hubspot, for example, can help to facilitate this approach, offering easy ways to personalize emails to individual prospects or customers. Your SaaS agency can handle the details, doing tasks such as building automated workflows for email campaigns, setting up proper lead capture and lead scoring, and tracking the right data. 

Social Media Management

A successful social media presence doesn’t just happen accidentally. Creating a Facebook page for your company and expecting people to hang out there just doesn’t work. A coordinated strategy is needed, and a good marketing platform can help with the heavy lifting.   

Solid demographic data will help guide the choices you make to maximize your impact on social media, including selecting the right social media platforms for your brand.

Here's what recent research indicates:

LinkedIn 89% of B2B marketers use LinkedIn for lead generation, and 62% say it produces leads for them effectively. (HubSpot)
Facebook One in four marketers list Facebook as one of the most effective platforms for building community on social media. (HubSpot)
X (Formerly Twitter) As of August 2023, X’s ad revenue was down 60% from the previous year, suggesting that brands still aren’t confident they can trust X with their marketing dollars. (HubSpot)

Pay Per Click Advertising

PPC offers SaaS companies the way to acquire new leads swiftly and efficiently. The advantage is that you don’t have to wait a long time to see ROI like you do with SEO. With highly targeted strategies, you can present your software using ads on Google. Depending on your market, you might want to pursue Facebook or LinkedIn advertising, PPC or Google ads, or banner ads on industry websites.   

With a keen understanding of the intent behind visitors’ searches, pay-per-click ad campaigns can be exceptionally effective.   

Contact Management

Make no mistake: keeping track of your company’s contacts is a complex and time-consuming endeavor. Even if some contact information is limited to a few pieces of data, there may be someone at your company who has had a more detailed encounter with the contact, which is important to capture.   

The right marketing platform can do that and more — for instance, capturing demographic data from a form on your website. The goal is to make sure all the relevant information about each contact stays close at hand. Other pertinent information may include responses to emails and clicks on Facebook posts. These indicators allow your marketing platform to segment your contacts into prioritized lists.   

By tracking customer contacts, you can systematically qualify the best leads. Entering the criteria of the greatest value or obtaining it through forms enables the automated platform to generate scores for each contact that helps identify the best leads.

Track Customer Contacts

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SaaS Marketing Metrics Companies Should Track

Metrics are always important, but especially so in SaaS marketing because of the difference between SaaS and traditional sales. Many SaaS marketers decide to measure everything. But this can be a dangerous instinct: measuring everything can lead to “analysis paralysis” — and the world of SaaS moves fast.   

With the wealth of data that you can collect today, it can be hard to know which metrics to track. Do you know what information is worth your time to track?  

To position yourself for success, identify goals and the associated KPIs for each stage of the customer journey in your SaaS marketing strategy. It helps to think of which metrics matter most for each stage of the buyer’s journey. For example, use traffic and click-based goals for top-of-funnel content, engagement, and lead generation KPIs for mid-funnel activities, and sales metrics for bottom-of-funnel pieces. 

SaaS Marketing Metrics that Can Help You Boost ROI

Top of the Funnel Metrics

SaaS marketers should pay attention to the metrics that reveal important information about leads. However, remember that this is just one stage of the process — you’ll also want to make sure your efforts are converting these leads. Here are our recommendations for metrics to track that really do make a difference in the initial stages.

Unique Visitors

 

Unique Visitors

You can easily use Google Analytics to track unique visitors to your website. This metric can reveal a great deal about how well your marketing efforts are working, as well as the size of your audience.  

Sign-ups

 

Sign-ups

This is one of the critical SaaS marketing metrics because it tells you something about engagement. If your visitors find your website and then immediately disappear, it’s an indicator that you may need to revise your web content. The number of sign-ups (when a lead signs up to download your free or freemium version) is crucial: By getting prospective customers to start using the software, they can see the value of the product first-hand.    

MQL, SQL, & PQLs

 

MQLs, SQLs, & PQLs

The first rule of thumb to keep in mind about leads? Not all leads are created equal. Using a CRM system, you’ll want to monitor the number of Marketing Qualified Leads (MQLs), Sales Qualified Leads (SQLs), and/or Product Qualified Leads (PQLs). MQLs might be interested in buying, based on their behavior on your site. PQLs are people who have your free version and whose use of your product implies they are a potential for upselling (for example, they spend a long time with your software or are using premium features frequently during the trial period). 

The behavior of SQLs indicates they are closer to buying. Maybe they will schedule a call with a sales rep, for instance. Keeping track of these SaaS marketing metrics can help you illuminate any problems in your process. 

Qualified Lead Velocity Rate (LVR)

 

Qualified Lead Velocity Rate (LVR)

Knowing how to calculate this number allows you to forecast. If you know what your revenue goal is, and you know your lead conversion rate, you know how many leads you need each month to meet your target. 

Many marketers forget about this one, and importance to their strategy — it’s a big deal. Here’s how you calculate it: 

Lead Velocity Rate

SaaS Customer Metrics

SaaS Customer MetricsSuccessful marketing is just as much about customer retention. In fact, you should expect your SaaS marketer to make a significant impact here — the ROI on these efforts can help you ensure funds that can be spent on product development, allowing you to grow and scale up. Here are the metrics to watch to ensure marketing efforts can deliver results with existing customers:  

Monthly Recurring Revenue (MRR)

 

Monthly Recurring Revenue (MRR) 

This is one data point that most everyone knows to track. That’s because your MRR numbers tell you how much money you’re making overall. If you’re dealing with multiple price plans and complex products, this is an easy way to find out how you're doing.

Customer Churn Rate (CCR) and Revenue Churn Rate (RCR)

 

Customer Churn Rate (CCR) and Revenue Churn Rate (RCR)

According to HubSpot, the definition of customer churn rate (CCR) is “the percentage of your customers or subscribers who cancel or don't renew their subscriptions during a given time period.” In other words, customers try out your product, don’t like it, and leave. Or they try out your product, don’t get it, can’t get the support they want, and leave. While SaaS marketers tend to dread this metric, it’s important not to turn a blind eye toward it. You should also bear in mind your Revenue Churn Rate — the amount your leaving customers are costing you. If this metric raises concerns, you may want to consider creating high-quality training resources that retain large-scale enterprise customers.

Customer Acquisition Cost (CAC)

 

Customer Acquisition Cost (CAC)

Probably one of the most crucial metrics to investigate, your CAC tells you how much it costs you to gain a customer. If you’re spending too much to find your customers, you’ll never see a positive ROI no matter how great your product. Experts recommend recovering your CAC within 12 months in order to stay viable.

Customer Lifetime Value (CLV)

 

Customer Lifetime Value (CLV)

How much are your customers worth to you? Tracking this metric will let you know. Boosting this number translates into a stronger ROI for any business, but it is particularly relevant if you’re selling a high-complexity, high-priced SaaS product. Increasing value per customer is the way to keep an enterprise SaaS product consistently profitable.

CLV:CAC Ratio

 

CLV:CAC Ratio

Striking the right balance is essential to SaaS marketing. Understanding this metric lets you evaluate the balance between your Customer Lifetime Value and the Customer Acquisition Cost. According to Klipfolio, the ideal CLV:CAC ratio is 3.1 — which means that each customer is worth 3 times more than it costs you to get them. If your number is 1:1, you’re losing money; however, if it’s 5:1, you could stand to spend more to capture additional business. 

Net Promoter Score

 

Net Promoter Score

The Net Promoter Score tells you how likely your customers are to recommend you to a friend or colleague. To calculate your NPS, you’ll need to survey your customers. You can ask questions like: “On a scale of 1 to 10, how likely are you to recommend this product to a friend or colleague?” In general, customers who answer this with a score of a 9 or 10 can be considered “promoters,” those who give you a 7-8 are “passives,” and anyone with a score below 7 is a “detractor.” To calculate your Net Promoter Score, subtract your “detractors” from your “promoters.” It's also wise to include an open field in your survey to gain qualitative feedback from your customers that can help direct your efforts.

Analyzing these SaaS marketing metrics and adjusting accordingly will go a long way toward ensuring your marketing plan delivers a strong ROI. With this knowledge in mind, you’ll want to make sure you have the best tools at hand to execute your strategy.  

 

Analyzing SaaS marketing metrics

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5

Marketing Tools & Best Practices

With a firm grasp on your strategy, methods, and metrics, you’ll want to make sure that you have the resources you need to execute SaaS marketing effectively. Is your toolbox stocked up?  

Marketing Tools That Can Help SaaS Marketers

In addition to having a marketing platform to organize content and effectively manage your strategy, you'll need some tools that can boost your marketing ROI and supplement your platform. 

Here are a few tools we recommend:

  • HubSpot

    HubSpot offers an array of services that can handle everything from email to websites to social media and contacts. It’s a good idea to look for a HubSpot marketing agency with experts that can help you seamlessly integrate their tiered packages and add-ons, depending on your company’s needs.
  • SEMRush

    — This SEO tool goes far beyond keyword tracking. Marketing experts use SEMRush as a valuable toolkit for useful insight into your marketing performance on multiple levels. It can even show how your SEO efforts rank compared to your competition.
  • Seventh Sense

    — Sometimes your emails need a little fine-tuning. With Seventh Sense, you can more easily determine the right timing and frequency for emails.
  • Wistia

    — Since video is an important component for every marketing plan, you’ll want to check out Wistia. This service assists in creating and deploying professional videos. But most importantly, it’s a tool to evaluate their impact.
  • Grammarly

    — Proper grammar, accurate spelling, and refined writing is a hallmark of a professional presence and helps you build credibility. Since most SaaS companies don’t usually employ trained editors, it’s a good idea to get a little extra help. Grammarly scans content for violations of 400 grammar rules, suggests stronger adjectives to replace weak ones, and detects plagiarism.

You can discover additional SaaS marketing tools you may find useful. 

Best Practices for Realizing a Strong ROI

While SaaS marketing does follow the same basic rules as any other type of marketing, there are some unique tactics that are needed. To get businesses interested in your company’s product and service, you’ll want to consider these established best practices.

Free Offers

 

Free Offers

Providing a free software trial is a strategic marketing move that can yield long-term dividends. It's a common practice in the SaaS industry for a reason. It allows a sales qualified lead to determine first-hand if your software is a good fit for their company and increases opportunities for engagement with your sales team.

Use Customer Reviews

 

Use Customer Reviews

There's nothing quite like a solid reference in the B2B SaaS industry. A few solid customer testimonials could be the difference that urges a qualified lead to purchase your software. 

Collaborate with other Software Companies

 

Collaborate With Other Software Companies

Contrary to some companies’ beliefs, collaboration within the industry is a good thing. Developing connections with another software company offering a complementary product to your own can help with leads, marketing, costs, and more. 

Hire a SaaS Marketing Agency

 

Hire an Agency with Experience

The effort that it takes to craft and implement a solid SaaS marketing strategy can be overwhelming to companies with a small team. If you don’t have the expertise to implement your strategy in-house, consider partnering with a marketing agency that specializes in helping SaaS companies to reach their goals. 

If you decide that hiring an agency is the right move for you, read on to discover what you should expect from your SaaS marketing partner.

SaaS marketing partner

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6

Working with an Agency

Selecting a SaaS marketing agency can save you time and expedite results. Look for an agency that specializes in helping SaaS businesses. They should be able to deliver an improved website design and support for marketing campaigns so you can generate more leads.   

You'll also want to be sure that the agency you choose not only understands the SaaS marketing environment but also has a solid track record of creating effective inbound strategies. Content marketing for SaaS companies involves more than just hitting the publish button. To successfully handle the many moving pieces, you need access to expertise in many areas, such as customer journey mapping, keyword research, SEO, social media marketing, email marketing, and more.  

That’s just the tip of the iceberg—let’s take a look at how to choose a potential marketing partner.  

How to Evaluate a SaaS Marketing Partner

Selecting the right agency is one of the most important decisions you can make. With the right choice, you can build a sound SaaS marketing strategy to see a return on your investment with more engagement, leads, and subscribers. Meanwhile, you’ll get time back to focus on your core business activities. How can you be sure you’re making a wise decision? 

Here are some key questions to consider:  

  1. Do you have experience working with other SaaS companies, and what have you learned about the market?

    In this market experience shows. SaaS industry customers respond best to content that educates and informs. Look for a partner that pays attention to current SaaS industry trends and best practices. Working with a SaaS marketing agency that stays on top of industry trends can propel you toward your sales goals faster. You’ll save time and money when your marketing partner doesn’t have to play catch-up about your industry. 
  2. What is your process for developing a SaaS marketing strategy?

    While it’s true that the sophistication of today’s marketing platforms and high-tech tools make marketing easier than ever, they are dependent on having a well-informed strategic approach. Technology can save time, sharpen analysis, and help guide a company’s message, but your company still needs an overall strategy that makes the most of the tools available to ensure you are reaching the targets. 
  3. Can you provide examples of effective SaaS content marketing?

    If you want to get in front of prospects early in the purchasing path, capture their attention, build trust, and turn them into customers — you must produce high-quality content and make sure that it can be found in relevant search engine results. B2B customers seek content that can help them stay up to date with the latest industry news, do their jobs better, and advance their careers. Content marketing for SaaS companies should focus on sharing information that solves your audience's challenges, answers their burning questions, and/or helps them achieve results. 
  4. What is your level of SEO expertise?

    Without a strong SEO strategy, it doesn’t matter how well-written and valuable your content is. A knowledgeable SEO expert can analyze keyword intent and help you generate a meaningful amount of inbound traffic. Find out how the agency conducts keyword and competitor research.
  5. What services are available to enhance our website?

    Web pages and landing pages have to be updated constantly to stay fresh and to keep up with the rapid evolution of SEO. A good marketing platform makes that easy. The right SaaS marketing agency can keep all the website elements together and well-integrated. If you’re not sure if your website is really working for you, sign up for a Spot On website audit.
  6. What is your approach to email marketing?

    For every $1 spent on email marketing, the average campaign earns $38 in ROI, according to a Campaign Manager report. The key is to send targeted and segmented emails exactly when your audience needs them most. Working with a SaaS marketing agency partnered with HubSpot can allow you to set up personalized, targeted email campaigns that are triggered by what your users are doing.
  7. How do you integrate social media into your marketing plan?

    You might think that social media isn’t the best platform for SaaS marketing, but it can be crucial in reaching a wider audience. The key is to ensure that you’re utilizing the right channels and including relevant videos. Research shows that social videos get 12 times more shares than text and images, and video posts on social media get 48% more views. As more B2B decision-makers use social media to research products, social videos should be part of your content marketing strategy.
  8. Do you have experts who can guide a pay per click advertising strategy?

    PPC can help get traffic to a new website or landing page quickly, can help drive brand recognition and eventually organic clicks, and can provide data on which keywords are working best that can be leveraged to inform your content strategy. A word of caution: a PPC strategy requires expert guidance in order to be effective. When implemented simultaneously with content marketing, it can be highly successful at reaching your target market.

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Conclusion

Working with a marketing agency can streamline and elevate your marketing efforts. When you choose a marketing partner with SaaS industry experience, you’ll save time and resources as they understand the market and can quickly respond to trends. The right agency can also help you gain traction swiftly while building trust and credibility with your potential — and existing — customers.

With know-how to build an effective inbound marketing strategy, a SaaS marketing partner can expand your reach, increase conversions, and decrease customer churn. A full-service digital agency can deftly handle everything from website improvements to targeted email and social campaigns and more.

Rather than spend your valuable time and resources on marketing, let the experts take the wheel. Spot On has helped many SaaS companies implement a winning marketing strategy and we’d love to do the same for you. To learn more, book a meeting. 

Build a Standout SaaS Marketing Strategy in 2024: Tips for Accelerating Growth
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Build a Standout SaaS Marketing Strategy: Tips for Accelerating Growth