In a sales-driven approach, a customer goes through most of the process on their own. However, in the last stage, they typically engage with a sales team that helps guide and recommend the best plan.
Six Myths of Product Development
This process can naturally take longer and might require additional resources. Finally, the enterprise cycle could easily take months, if not longer, before a contract is signed. All in all, however, typically, SaaS companies have the following objectives for their marketing strategies:.
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To kickstart its growth, a SaaS company must connect with potential users and bring them to their site first. Rather, people who already experience a specific problem your product aims to solve. Then, devise a strategy to entice them to learn more about the product.
Marketers are responsible for nurturing leads. Using a combination of content, emails and other channels, a new SaaS company should position themselves as an authority, and convince leads to test their product. In SaaS, marketers often optimize conversions around various website goals — from trial sign up to on-boarding to converting free users into paying customers. For most SaaS apps, users sign up for a trial, free, or demo version of the product first.
Typically, marketers accomplish this by optimizing the free or trial plan to help a person get to the activation point, where they realize the true value of the product. SaaS marketing strategies are often aimed at increasing customer lifetime value by reducing churn and moving customers to higher priced plans. SaaS companies have a plethora of opportunities to introduce their products to potential users and achieve initial traction. Inbound marketing strategies aim to attract strangers to your product and convert them into new customers.
And it all starts with content. Today, almost everyone turns to search engines for answers. SEO is a practice that helps position your site and content in front of potential users at every stage of the buying cycle. Publishing engaging content helps you position your brand or product as a credible authority and helpful resource in the industry. SaaS companies place online ads to attract and entice potential users to sign up.
Many also use paid ads, from pay-per-click PPC channels like Adwords to social media ads to display or banner advertising to drive potential users to lead generating assets or a product sign up. These days, PR is more than just publishing and distributing press releases. From search results to brand mentions, online reviews, and much more, PR strengthens brand awareness and recognition.
Viral strategies focus on getting existing customers to refer and promote your product to others.
Product development in popular industries
These programs focus on getting your users to invite their friends, family, and connections to sign up and try out the product as well. Common types of viral marketing strategies in the SaaS space include referral, or affiliate, programs or viral loops. For some apps, users can naturally expand a customer base by introducing the product to their clients.
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For example, Xero discovered that, on average, a single accountant using their product introduces anywhere from 6 to 31 new users to the platform. Some SaaS companies can also take advantage of app marketplaces like Intuit, Apple Appstore, or Google Play to promote their products to new audiences.
Many others launch affiliate or reseller programs that reward anyone willing to promote their products with cash or other rewards. Before attracting any visitors, a new SaaS company must decide how it is going to charge for their product. This is important for two reasons:. As PwC reported , it takes two years for a typical SaaS company to break even.
The freemium model offers a significant number of features for free, along with additional paid packages. Slack, Dropbox, or Airstory are examples of freemium-based SaaS products. Most users can use them at no cost. But when they need more than the basic feature-set, they must upgrade to a premium package. In this pricing model, a company offers a single product with a standard feature set for a flat rate. By far, the most common pricing practice among SaaS brands is to offer multiple packages.
Each package includes a different feature set, designed to suit various user needs. Some SaaS companies offer a different option depending on the number of users. Instead of paying a flat fee or choosing a feature-set, they can pay per user. Asana, for example, charges companies a flat rate for every person they sign up to the app. Finally, some products charge for usage, rather than feature sets or users. Companies using Stripe, for example, pay for every transaction processed.
Want to learn more? SaaS offers an incredible business opportunity. Adoption of the software as a service model continues to grow rapidly. However, with high demand and competition, founders must understand the intricate dynamics of the market and work to stand out by providing unique solutions and immense value to users. As you continue to explore SaaS and make your introduction into this multi-billion dollar industry, remember to keep these goals at the core of your offering. Originally published Jun 15, AM, updated September 05 Contact Us.
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Keep reading to learn more, or use the chapter links below to jump ahead. What is SaaS? What is a SaaS Company?
What is a SaaS company? Topics: SaaS. Don't forget to share this post! No search results, please change your search criteria. Technology is advancing so rapidly that companies are forced to either change how they operate or risk getting left behind by the competition.
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Software That Sells : A Practical Guide to Developing and Marketing Your Software Project
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