It’s a good time to be a SaaS (software as a service) company. With a market value of $186.6 billion and an annual growth rate of 18%, the U.S. SaaS industry is expected to reach $369.4 billion by 2024 and $700 billion by 2030 (Zippia, 2022). It is estimated that 70% to 90% of companies already use SaaS platforms.
Digital marketing strategies for SaaS brands must highlight innovation and the accessibility, functionality and versatility of products and services.
What is a SaaS Company?
A SaaS company is a business that provides software applications to customers through cloud computing. This means that the software is hosted on the provider’s servers and is accessed through the internet. SaaS companies are known for their subscription-based revenue model in which customers pay for access to software applications on a monthly or yearly basis.
SaaS brands deliver software solutions that are flexible, scalable and cost-effective, enabling their customers to access advanced software solutions without having to incur high development costs or maintain infrastructure.
Examples of SaaS companies include Salesforce (customer relationship management or CRM), HubSpot (marketing automation), Dropbox (file-sharing), Slack (online workspace, team collaboration) and Zoom (video conferencing).
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In a market rife with competition, SaaS brands may struggle to differentiate their brands and the solutions they provide. Unlike traditional marketing, digital marketing offers strategies and tactics that are in line with the innovation that SaaS companies offer.
Here are the top seven digital marketing trends in the SaaS industry.
1. Content Marketing
Because of the type of products they sell, SaaS brands are using content marketing, such as video (tutorials, testimonials, how-to guides), blog posts, e-Books and webinars, to engage, educate and provide value to target audiences.
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One benefit for SaaS brands is that their potential customers already are searching for solutions to their needs on the internet, making digital marketing the perfect method to reach them and persuade them to try a new software or platform.
2. Account-Based Marketing
SaaS companies are adopting account-based marketing (ABM) strategies to target high-value accounts. ABM focuses on identifying these accounts and creating personalized marketing and sales efforts to engage them rather than broad-based campaigns. ABM typically involves using account-specific data for campaign development, creating customized content and messaging for each account and leveraging a variety of channels to reach the target audience.
Done correctly, ABM can generate high-quality leads, shorten the sales cycle and increase revenue from target accounts.
3. Focus on SEO
SEO (search engine optimization) is one of the best digital marketing tactics for generating relevant organic leads and gaining domain authority. Using SEO tactics, SaaS brands are optimizing their websites, blog posts and other content to improve their ranking in search engine results pages.
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4. Free-Trial Offers
Offering free trials of their products is one of the most effective ways SaaS companies are reaching new customers and increasing sales. Free trials incentivize qualified leads to move the needle and give your software or platform a try. For SaaS brands, offering a free trial can provide great returns with very little or no investment.Pros:
Free trials do more than promise a good product to potential customers; they show it by demonstrating how useful and beneficial the product is, as well as the quality of the customer support. If the product and service is good, free trial participants become actual customers.
5. PPC Ads
Pay-per-click (PPC) advertising is one of the easiest and quickest ways to generate leads, so many SaaS companies are relying on it. However, they must be careful not to invest their entire PPC budgets in one place. Instead, they should consider investing in ad campaigns on relevant social platforms such as LinkedIn and Facebook.
6. Email Marketing
Email marketing is helping SaaS brands reach very specific target audiences, generate leads and improve customer retention rates while also generating a positive return on investment. Email marketing is an excellent tool to use in the later stages of the sales funnel and can turn satisfied customers into advocates.
7. Affiliate and Influencer Marketing
SaaS companies are paying affiliates (existing customers) or partnering with influencers (industry experts, thought leaders) to promote their software solutions. Their endorsements and testimonials are very effective in convincing potential customers to give the products a try.
The SaaS industry is a rapidly growing sector that requires a unique approach to digital marketing. With the right tactics, SaaS brands can reel in a lot of leads in a short time span. At Gravital, we specialize in digital marketing and sales-enablement services for the SaaS industry. Are you ready to refine and accelerate your digital marketing strategy? Talk to us.
