SaaS Marketing : Definition, Important Aspects, and Best Marketing

Today, the term software-as-a-service marketing or SaaS marketing is certainly no longer a foreign thing to the ears. Because SaaS itself has become a staple of the new cloud-based economy.

 So far there are more than 10,000 SaaS companies, with a total market capitalization of more than $225 billion. 

Launching from Techradar, SaaS is a software or application service based on cloud computing (cloud). Software-as-a-service itself is the main choice to reduce device maintenance and maintenance costs. The reason is, SaaS technology allows companies to get maximum service from service providers, instead of doing everything themselves. 

In addition, other reasons why companies use SaaS are because it can save time, can reduce operational costs (fixed costs) that companies have to spend, reduce space requirements because they don’t need to provide their own database storage, as well as ease of access and data analysis processes. 

So, what is the important role of SaaS marketing and how is it implemented?

What is SaaS Marketing? 

Launching from Kinsta.com, SaaS marketing is a set of activities, tactics and marketing strategies to position and sell service-based products to new customers.

This marketing strategy aims to ensure that the SaaS product is relevant and able to meet the needs of your target market. The trick is to make potential customers or leads want to know more about your product. Then give it a try, and finally subscribe.

This technique is almost the same as product-led growth, which is a marketing strategy that emphasizes product quality. Where you can offer customers to try the product first before deciding to subscribe.

Because when using the SaaS service model, you only need to use the application without having to understand other technical things. Instead of each user having to install software on the computer, they can access the program via the internet. 

Important Aspects of SaaS Marketing

In SaaS marketing, there are a number of important aspects that you need to understand. The following is an explanation of each: 

1. Customer Acquisition Cost (CAC) 

Customer acquisition cost or CAC is the amount of costs you incur to get new customers who pay for certain marketing channels. The way to calculate it is by dividing all expenses on the marketing channel by the number of paying customers / subscribers.

For example, if you spend $1,000 dollars on Google Ads and get 10 paying customers. Then your CAC is $100. So the more marketing channels you use, the more complex the CAC measurement will be.

2. Customer Lifetime Value (CLV)

Customer Lifetime Value CLV or customer lifetime value is basically how much one customer pays for your business on average.

If you sell only one subscription for a price of $30/month, and your subscribers stay subscribed for an average of 6 months, then your customer lifetime value is $180. You can get the customer lifetime value calculation with the formula:

3. Customer Churn Rate The

current aspect is the customer churn rate. That is, the percentage of customers who canceled their subscription over any period of time.

For example, the weekly churn rate will be very different from the monthly churn rate. To calculate the churn rate, you simply define a specific time period and calculate the total percentage of unsubscribed users.

For example, if 100 out of 10,000 subscribers are left in a month, then your monthly churn rate is 1%. 

4. NPS or Net Promoter Score The Net

Promoter Score or NPS is one of the customer satisfaction surveys that many SaaS companies implement. Usually, this NPS is useful for measuring how likely a user is to promote or recommend a product to others.

The scale used to perform this calculation is between 0 to 10. For example, “From a scale of 0-10, how likely are you to recommend this product to relatives/friends?” The survey results showing a score of 7-0 are considered a promoter.

That is, the number shows that customers are satisfied and make an advocacy or recommend to others. On the other hand, values ​​0-6 are detractors, meaning customers do not want to recommend the product to others.

After customers answer their questions, you can immediately process and process the data. The results of data processing will be considered for companies to evaluate. 

5. Customer Onboarding 

Customer onboarding refers to the process of getting users who sign up for a free trial to start using your services. Then in the end it becomes a paying customer.

The more customers use your service, the more likely they are to become paying customers when the trial ends.

Thus, the greater your chance to increase your conversion rate and get loyal customers who are loyal to the brand (brand loyalty). 

6. Monthly Income (MRR) 

MRR or monthly recurring revenue is the total income for a period of 1 month. This is one of the key metrics for subscription-based business models, such as SaaS. Where the customer pays a monthly fee in exchange for a service or product. To make the most of it, make sure you don’t include a fixed amount for your annual/quarterly subscription during the month. You should also make sure to exclude one-time payments.

Best Marketing Channel for SaaS Marketing

1. SEO (search engine optimization)

SEO (search engine optimization) is one of the techniques for optimizing keywords in search engines like Google. You have to optimize SEO for company website to increase web traffic from organic search.

Because with SEO, it will be easier for customers to find your content. Quoting from Hubspot, Google maintains a global market share of 92.37% for search traffic. Where 57% of B2B marketers choose SEO as their biggest lead-generating marketing channel.

If you want to leverage SEO as a SaaS marketing channel, here are the optimization basics you need to understand:

  • Use SEO tools to identify keywords that your potential customers are likely to search for. 
  • Find opportunities for low competition among these keywords.
  • Create pages and articles targeting relevant or SEO friendly keywords. 
  • Build relevant links or backlinks to increase website domain authority.

2. Content Marketing

Quoting from Salesforce, the average customer engages with 11.4 content marketing before converting. Where 70% of customers prefer to get to know the company through educational and useful articles rather than advertisements.

Content marketing itself is basically an approach where you focus on distributing high quality content through multiple channels.

Where any content can be the beginning to establish a relationship with prospects and turn them into potential customers. 

Usually, content marketing works best when you develop a strategy that includes a variety of formats such as:

  • Blog posts 
  • White papers 
  • Reports 
  • Infographics 
  • Videos

3. Email Marketing

communicating and building relationships with customers who are already interested in your product is much easier than attracting new customers. T

hat’s why email marketing can record an average ROI of $42 per email. This is why email marketing is still considered the most effective marketing channel.

For those of you who want to use email marketing as a marketing channel for SaaS marketing, here are some guidelines that you can apply:

  • Setting up email marketing tools
  • Building email lists and segmenting emails
  • Sending email blasts
  • Increasing email open rates
  • Optimizing email marketing by personalizing emails
  • Performing analysis email performance 

4. Social Media Marketing

Through a variety of organic posting approaches and paid advertising, many SaaS companies see success through social media marketing.

For example through Instagram marketing, Facebook marketing, LinkedIn marketing, Twitter marketing, to YouTube marketing. The reason is, there are more than 3.48 billion social media users in the world.

This of course makes social media a very promising marketing channel. What’s more, there are several metrics you can use to measure the effectiveness of marketing on social media. For example with social media scoring.

That’s a review of SaaS marketing along with the important aspects and the best marketing channels to implement it. Basically, this marketing strategy is a new breakthrough that helps the company’s performance.

You really need to implement this strategy, especially for businesses that are in the SaaS or service-based sector. 

Meanwhile, apart from implementing SaaS marketing, you can also use digital marketing agency services to help develop your business. Some of the marketing strategies that can be implemented are growth hack marketing, inbound marketing, 360 Digital Marketing, and Data-driven marketing so that the company can grow rapidly.