The software-as-a-service (SaaS) market has been a growing market for many years. In the past year, the SaaS market once again experienced tremendous growth. On an international level, Belgium is one of the most progressive countries when it comes to implementing SaaS. Belgium not only has some very nice and internationally known SaaS companies, but also is an enthusiastic consumer of SaaS solutions. Since research shows that as many as 95% of the Belgian companies choose a Saas solution. So it is definitely a market to keep an eye on! But what exactly is SaaS marketing? You will find the answer in this blog post. Ready? Set. Go!
SaaS marketing refers to the activities, tactics and strategies implemented to position and sell subscription-based services to new customers. SaaS marketing also means making your offering relevant and indispensable. In doing so, you position your service to meet the needs of your target audience in such a way that potential customers want to know more about your service, try it out, and eventually subscribe to it. If you want to market a SaaS product, then you are investing in a strong client relationship.
Like any specific category within marketing, even with SaaS marketing, there are a number of terms that you need to be familiar with. Think of NPS, CAC and customer onboarding. By familiarizing yourself with these terms, you will better understand the idea behind this form of marketing.
1) Net Promoter Score
The Net Promoter score is a widely used KPI that many SaaS companies use to measure how likely it is that a customer would be promoting their product. It’s a simple survey that asks customers to estimate if they will recommend your service or not.
Anyone with a score of 7 or 8 is considered passive. These customers are satisfied with your product, but are unlikely to share information about your service, either negative or positive.
Every customer who gives a score between 1-6 is called a detractor. This is someone who will probably share negative information about your company.
Every customer who gives a score of 9 or 10 is called a promoter. These users are likely to recommend your product or service to friends and acquaintances.
2) Customer Acquisition Cost (CAC)
The CAC is the total cost of sales and marketing needed to attract a new customer over a period of time. If you want to attract a new lead and convert that lead into sales, you have to involve a mix of marketing tactics. This could include social media marketing (advertising, inmails), email marketing, content marketing and so much more. The lower the customer acquisition cost, the more efficient your marketing and sales efforts are to win new deals.
3) Customer Onboarding
Customer onboarding refers to the process by which users first sign up for a free trial of your service, use it and eventually become a paying customer. The more intensively someone uses your service during the trial, the more likely they are to become a paying customer. The more a customer is affectionate about your product, the greater the chance that he or she will remain a paying customer in the near future.
4) Organic search/SEO
In essence, the goal of SEO is to create content that is tailored to people’s search terms. So, you need to optimize your pages and website for SEO to get organic traffic from Google and other search engines. If your SaaS is primarily B2B, this means that SEO should be a priority for you (at least for testing).
These are the basic principles of search engine optimization:
To make sure you fully understand SaaS marketing, it is interesting to take a look at the examples of SaaS companies below. Actually, we consult SaaS companies and applications on a daily basis without realizing it.
1) Office 365
A good example of a SaaS product is Office 365. The costs consist of a fixed amount per month for the customer. In addition, the entire software can be used online.
This SaaS application is one that can help small business owners or social media managers enormously. From making business cards to creating social messages, Canva has a template for almost everything.
Teamleader is an all-in-one software supplier of CRM, sales, invoicing and project management. It is very user friendly.
SEMrush is an all-in-one data analysis tool for professionals in digital marketing. Keyword research is crucial when doing inbound marketing. Not only for your company, but also to see where you stand in relation to the competition.
In this integrated marketing / sales solution, an efficient and effective lead development process can be set up. A lead automatically enters the sales pipeline with an account manager. He or she immediately has the right information to approach the prospect in a targeted manner. Marketing campaigns are easy to automate and measure.
And that’s a wrap! We hope to have helped you with the first steps into the world of SaaS marketing. If all goes well, you now have an idea of the basics. Did you like this blog post? Go and discover more on our blog page.
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