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What is SaaS Marketing & How it differs from traditional marketing?

July 8, 2021 by Yogesh Jain Leave a Comment

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Marketing is hard. But unlike marketing a physical product, you’re selling something that is intangible and constantly changing. SaaS marketing is challenging and is critically different from every other type of conventional marketing there is. 

In this article, we point out some of these differences and how you can make the most of these SaaS marketing advantages. Let’s get started!

How are sales funnels different in SaaS companies? 

SaaS companies use a different and more specialized funnel called the AAARRR funnel that focuses on the entire lifecycle of the lead and on what happens after they have made the initial purchase. On the other hand, the traditional marketing funnel is highly acquisition-focused. 

SaaS marketing vs traditional markeitng funnel
Image source: Intelus

The AAARRR funnel focuses not only on generating leads but also on retaining and monetizing that customer after they have completed the first purchase. 

Read More: 11 Must-Read B2B Marketing Books For Every Digital Marketer

Giving away free stuff or free trials

Free trials have become a widely accepted strategy for SaaS marketing. There are many types of free models you can offer like trial-to-paid, trial with credit card information, 90-day free trial, trial version for a limited period, etc. Allowing customers to explore your product for free as a part of a trial plan enables them to get a taste of what value your product offers. 

Check out this home page for Zendesk offering free trials for all of its plans. 

Saas Marketing meaning and example - Zendesk model
Zendesk offers free trials for all of its plans.

Slack enables its users to create workspaces and add as many users as required for free. 

SaaS marketing by Slack
Try Slack for free with some limitations

Read More: Top 5 SaaS Marketing Trends You Should Look Out for in 2022

Short sales cycle and long-term customers 

SaaS sales cycle is relatively short, but customers are long term. The cycle is relatively short because that is the nature of the industry. Users will visit your website, play around for a bit, read some reviews, and do some research. There is no requirement for road trips to protracted negotiations, meetings, and demos, as it can all be done online. 

The success of SaaS marketing is keeping your customers. Research by Bain & Co suggested that a 5% increase in your customer retention can increase your profitability by 75%. 

Read More: 10 Amazing SaaS Marketing Strategies That Are Proven Successful

Your greatest asset is your content.

SaaS companies are working harder than ever to show thought leadership and build their credibility by offering free information through articles, podcasts, interviews, reviews, ebooks, guides, etc. This enables SaaS companies to market their value, expertise and assist potential customers in getting to know your brand. When a customer notices that you’re providing innovative insights and solutions to their problems, it is extremely persuasive. 

HubSpot is one such brand that turns up on the first page of Google results for any marketing topic. Through publishing high-quality articles, HubSpot showcases its deep industry knowledge, which reflects the brand and the quality of its marketing activities. 

Importance of content in SaaS Marketing
HubSpot is the second result when searched for email marketing

Read More: 10 SaaS Marketing Metrics You Should Absolutely Use

Building recognition on social media

Social media marketing is not that different from SaaS. Social media can help build brand recognition and visibility. It is also important that we place together SEO, social, and content plans. There are lots of outstanding examples of SaaS companies that have nailed their social media marketing. But the one that tops the list is Zendesk, and it’s a crazy marketing ploy. 

Zendesk Alternative

Zendesk noticed people were using keywords ‘Zendesk Alternatives’ to find other platforms. So the SaaS company invented a fake alternative music band, Zendesk Alternative, and created videos, lyrics, websites, and social media accounts. The fake site converted at a 95% higher rate than the main website. 

Read More: 5 Simple Steps: Create Content Strategy Plan From Your Buyer’s Journey

Selling a service 

Software as a Service (SaaS) clearly states that, other than the software being flawless and powerful, the service needs to be upheld as the paragon of virtues. You should therefore make it easy for customers to get in touch with you through multiple channels of support like live chat, social media, emails, and forums. Customer support is essential to the long-term success of your SaaS. 

A classic example that is evergreen is that of FreshBooks. The SaaS company sends cakes to its loyal customers. 

Bryan Dort and his cake from Freshbooks. Image credit: Bryan Dort

Read More: 7 Killer Headline Tips to Help You Increase Website Traffic by 500%

Closing Thoughts

selling through content for SaaS marketing book side banner

The two fundamental essential elements to a SaaS marketing strategy are creating and maintaining an amazing service and providing exceptional customer support. 

Unlike traditional marketing, SaaS marketing relies heavily on developers, support teams, and marketers working closely. Having a great product will help generate word-out-mouth, and there is no better way to sell your SaaS! 

What SaaS marketing strategies do you have in place? Share your thoughts in the comments below. 

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Filed Under: B2B Marketing, SaaS Tagged With: b2b marketing, saas marketing, software as a service

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Concept Allies is a blog focused on spreading innovative marketing ideas. My reason for creating this blog is to share my ideas and vision with the business community and help them achieve their goals.

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I am Yogesh, a digital marketer executive currently helping IT companies grow their SAS products. With  a growth hacking mindset, passion for marketing and obsession over customer experience I specialize in creating campaigns that make conversions happen.

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