What is SaaS Marketing?

SaaS marketing


You may know about different types of marketing tactics and realize that some of them are worthful by selling physical products. But, do you know about SaaS marketing? Do you know how it changes the B2B model of businesses? Many businesses or individuals depend on SaaS products to reach their business goals.

Today, I want to share the idea about the SaaS marketing style and why it is growing gradually in recent years. I will highlight the advantages.

And how to market SaaS products to your prospects and what are metrics you should aware of. Before going forward first you should know what is SaaS marketing and why it is growing.

What is SaaS marketing?

SaaS products

SaaS marketing is a marketing approach in which the marketers focus on promotion and collecting leads for subscription or recurring-based products. It builds a long-term relationship with the client.

SaaS stands for Software as a Service and mainly products related to cloud-based software or tools are included in SaaS. These types of software help other businesses or companies. Take for example an IT firm or the individuals who require software to perform their operations.

One of the examples of products offered by SaaS to any blogger or website owner is SEO. Other examples like Keyword tools, landing page builders, and others.

These tools can help any business or individual website in the long term. It can help them to beat the competition. That is why they are always in demand. And people pay a monthly or annual subscription for using these tools.

Physical products receive one-time purchases while SaaS products are based on a monthly or annual fee. The main goal of a marketer in this field is to provide satisfaction through their products. It will build trust and their prospects will use the product for a lifetime.

Why is SaaS different from marketing?

SaaS is different

If you notice SaaS products, you will find that it is a type of B2B model and it relies upon other businesses. SaaS products receive regular updates and extra functionality.

It improves their customer’s experience so that they did not move to other products. The updates provide them more reliable and user-friendly experience and also increase the trust in security.

The marketers who promote their products and grab leads do not want to lose their customers. If their prospects find an alternative solution then it can affect their business. So, apart from the traditional marketing style, the goal of this business is to not lose leads or existing customers.

In these marketing tactics, marketers promote cloud-based software, enterprise solutions, tools, and applications. It can help other businesses like IT or consulting firms. Marketers build long-term relationships with their clients and also suggest other products and offers.

How do SaaS companies do marketing?

There are many ways to promote SaaS products but the motto of this marketing should be acquiring leads. This technique can convert as future clients pay for a subscription.

Before launching any product you should know about the target audiences. Also what solution you can provide to them so that they can trust your service and consider it in the future also.

Follow the following marketing strategies to grab more trustworthy prospects for your SaaS products:

1. SaaS email marketing

email marketing

Email marketing is one of the effective and high converting marketing techniques. it is quite popular with online marketers. If you have a list of your prospects then you can send emails promoting the new and updated products. You can send personalized emails to unique prospects for interaction and resolve their questions for better understanding.

Try sending reminders and a cycle of emails to grab more open rates and attention from your clients. Explain the usage, testimonials, and whitepaper of your product. It will help your customer to know what is it and how it can help in their business.

2. Try offering a free trial

SaaS trial period

Always try to give some trial period to the customers. So that they can try it and check whether the product is suitable for their business or not. If they find it useful then they will convert to a subscription-based customer and can use your products for the long term.

The goal of the trial period is to know whether your product meets the customer’s requirements. Also, you will get to know if it is worth the money.

3. Take help from the third person

SaaS influencer

You can take the help of influencers or the 3rd party resources that can influence people to purchase your product. YouTube is one the best place for sponsored products. Here well-known YouTubers having large subscribers can promote your products for some money. Influencer marketing is growing day by day because people trust popular personalities.

Instagram also can help in influencer marketing where 3rd party person introduces your target audience and give them an idea using your brand.

4. Incorporate content marketing

SaaS content marketing

Content marketing can help in getting more targeted customers to your business. It is useful in SEO and for any business website or landing page. If people come to your products through searches then the chances of conversion increase.

Get the idea of your peers and know the trending keywords to rank higher on search engines. When you build a brand reputation through content then customers will automatically visit your website and purchase products.

5. Know your customer’s feedback

SaaS feedback

When a customer buys a product from your business then don’t ignore them afterward. Instead, get feedback from them about their user experience. Know what technical issues they are facing and what updates they need.

You should know what customer loves and hates about your product. And you can update your products for better performance. Provide the support and knowledge base of your product.

What are the metrics related to SaaS marketing?

While doing marketing for SaaS products, you should aware of some metrics that you should measure for customer success. It can help you to manage your budget and track your revenue for your business.

1. Customer Lifetime Value (CLV)

This metric estimates the amount of money a customer spends in your business during their lifetime. It is a vital factor to know. Because it can help you to decide how much you should spend on acquiring customers to be profitable.

To calculate CLV, you should know about some other measures like:

  • Average purchase value: It can be calculated by dividing a company’s total revenue in a period like one year by the number of purchases from the same period.
  • Average purchase frequency rate: Calculate it by dividing the number of sales by the number of unique prospects in that period.
  • Customer value: To calculate this, multiply the average purchase value by the average purchase frequency rate.
  • Average customer lifespan: Calculate it by averaging the number of years a customer continues to buy from your business.

Finally, to calculate Customer Lifetime Value, multiply customer value by the average customer lifespan.

2. Customer churn

The rate at which customers stop taking your products or services is called customer churn or attribution. In the SaaS industry, retaining a customer is less expensive than acquiring a new one.

So it is an important key term for SaaS marketing. So, identify and nurture the most valuable customer to save money and increase revenue with an increase in CLV.

According to Harvard Business Review, it is found that acquiring a customer can cost between 5 to 25 times more than retaining the existing one. Also, a 5% increase in retention rate can boost the profit between 25% to 95%.

3. Customer Acquisition Cost (CAC)

The cost of acquiring a customer to your business is Customer Acquisition Cost. Suppose a business spent $10000 on marketing in one year and acquired 10 customers then the CAC is $1000. The less CAC, the better profit any business can make.

4. CAC-to-CLV ratio

This is the ratio of Customer Acquisition Cost to Customer Lifetime Value. For any SaaS business, this number should be small to generate more profit.

Provide information to your customers to establish a strong relationship

The whole SaaS marketing depends on information. The information or data you can provide to a new and existing customer. No matter how strong is your product is, you cannot acquire customers if you did not provide information.

One of the best ways to provide information about your product is through a blog. You can link along with a Call-to-Action button. So that anyone who wants to try out your product can read the detailed information about the product. It will boost the conversion rate and clear customers’ doubts.

Apart from a good landing page, you should introduce a blog section to your leads. Take the example of Hubspot and Buffer. Their SaaS product page includes their blog page. And anyone can know more about the product before making their decision of trial or buying.


SaaS products are very useful for small or big businesses and enterprise solutions. The marketing tactics for SaaS businesses are different from other business models.

Because here you need to care about customer lifetime value. Marketers provide them with subscription-based products to run a long-term business.

Also, they have to update the products and provide offers to their existing customers. If you can learn about their needs and how to build a brand then you can get success in the SaaS business.

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