Marketing can take so many forms. SaaS marketing is one of those sides of marketing which put a lot of challenges on the table and require high skills from the marketers’ side. In comparison to traditional marketing, in SaaS marketing, you are promoting something intangible. As intangible as it may be, an online service has its value proposition just as a physical product does.
Both SaaS and traditional advertising have one thing in common – content marketing. But how does the process differentiate between the two?
Thus, you will need to rely on the marketers and audience’s imagination to trust the brand and actually buy the product. This idea can be bolstered through adequate content marketing which demonstrates your service to the customer base without asking them to commit prematurely. According to statistics, however, only 11% of companies use content marketing in their SaaS advertisement campaigns which means that the industry still doesn’t have a solid foothold in the global market.
This is why it is pivotal for you to use a different approach to SaaS marketing as opposed to other types of advertisement such as eCommerce sale or event promotion. Let’s take a look at several instances in which SaaS marketing differs from traditional marketing efforts so that you may make the most of your service and gain an upper hand with your industry and competition.
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Quick Turnaround Times
SaaS marketing involves a fast sales cycle. Usually, consumers choose a SaaS purchase because they want that product right away. They check online for the solution to their problem, compare products and prices, read the reviews coming from friends and family, and then make the final decision really quick.
A good example of SaaS can be found in cloud-based text editors such as Evernote which offer basic features at zero cost. However, users who opt for more advanced features, extra storage space and other quality of life features may purchase the premium package. This type of SaaS marketing which revolves very quick decision-making on the end-user’s part is quite typical for the industry.
Compared to that, physical product purchases are often calculated and well thought-out due to the irreversible nature of their shipping, handling and return policies. This makes SaaS an easier sell even if your brand isn’t as popular as some of the service industry giants such as Netflix or Hulu. An understandable and relatable value proposition can make quick work of your sales process no matter what type of SaaS you may have on offer.
Rich in Information
SaaS marketing relies a lot on information. Therefore, the most significant task a marketer should have is to provide as much information as possible which will then lead to the biggest source of information which is the SaaS product. Asking someone to subscribe to your SaaS or make a one-time purchase without concrete, extensive information of what they are getting into won’t work.
James Fisher, a content marketing specialist at The Word Point stated recently: “A level of transparency and honesty is necessary when it comes to selling online services. Create a bullet-pointed list of features and benefits potential customers receive with the purchase and you should see an uptick in your engagement rates.”
Discussion articles and blog posts provide the perfect playground for SaaS marketing. They can be produced in-house or through influencer reviews, both of which are bound to bring traffic and leads to your doorstep.
A great example of SaaS marketing can be found in antivirus SaaS such as Avast which come packed with service information. This allows users to quickly understand the value of subscribing to a service they just came across, regardless of what any review or comment may say. Contrary to that, physical product marketing is a tougher sell because the only way to be sure a product is genuine is to try it out personally. In most cases, however, this type of trial is impossible due to overseas shipping and weeks-long wait times for the final delivery.
Retention-based Revenue
SaaS marketing focuses a lot on customer retention. As we’ve previously mentioned, SaaS often comes in the form of subscription-based services. Thus, all the marketing messages and campaigns are centered on creating long-term relationships with the customers. This means that content marketing should focus on the prolonged effects of using a SaaS and the benefits it brings to the user.
For example, an antivirus SaaS will bring security to the user’s PC while a streaming service might provide endless hours of enjoyment to a household. Short-term gain should never be at the center of a SaaS marketing campaign as opposed to typical marketing efforts. In terms of physical sales and products, marketers typically lean on immediate satisfaction and benefits that come with an item.
Book Depository is a good example of an eCommerce website that specializes in international book sales with an emphasis on free shipping. This is an example of a one-time gain that a user can achieve, even if they are a recurring customer. In terms of SaaS marketing, those benefits have to be constant and without dips in quality or delivery.
Trial Incentivizes Purchase
Giveaways, free trials, or free plans are considered to be a common strategy for SaaS marketing. Letting your customers try your service for free will make them trust your brand and create a stronger relationship in the long term.
Trial periods in SaaS marketing are nothing new and are in fact quite welcome in terms of advertising a new service or brand. A simple two-week or one-month trial period without penalties or restrictions would typically allow a user to test out a SaaS to see whether or not it suits their needs. Contrary to this, physical items are much more difficult to promote and sell with free incentives.
We’ve all seen free samples of hair shampoos attached to more expensive products in supermarkets across the world. This type of marketing generally requires additional revenue investment in order to push a new product alongside an existing item. However, this is where SaaS marketing reigns supreme over traditional marketing due to very little additional cost attached to online freebies.
Written Content Matters
In SaaS marketing content is the king. As you are not selling a physical product, you will need content to make your target audience trust your service. This content typically comes in the form of online articles, news outlet exposure, blogs and social media updates.
There is very little in terms of restrictions when it comes to promoting SaaS through online venues, something that cannot be said about physical products. It’s also quite easy to get your SaaS featured on other websites in your B2B network, allowing for further engagement and potential lead generation.
While you can still create adequate and eye-catching advertisement content for physical items, the problem is that potential customers won’t be able to get a hold of that item quickly enough. This can lead to customer erosion and loss of interest, something that doesn’t apply for SaaS marketing since it takes a few clicks to arrive at its official website and purchase options.
In Summary
It’s quite easy to grasp the difference between SaaS marketing and other, more traditional types of advertisement. However, monetizing on that knowledge and making sure that you apply the right marketing approach to your product or service is another matter entirely.
Compare your SaaS or product with the points we’ve covered before you settle of a marketing type for your business. They might give you the necessary edge to differentiate yourself from the competition enough to gain a respectful customer base.
