Inbound marketing has been hailed as shining a bright future for online-based companies. It is incredibly popular with Hubspot reporting that more online businesses than ever are embracing it. Its merits such as cost-effectiveness are stunning, driving many to adopt it in favor of the old method of outbound marketing.
However, amid all this buzz, is it also effective for SaaS Companies? Should SaaS businesses also dive in and part of the action? Read on and find out why Sass companies cannot afford to ignore the benefits of inbound marketing
What is a SaaS company and why SaaS inbound marketing is marketing done right?
SaaS companies are a unique set of businesses that offer software Services for internet customers. SaaS stands for Software as a Service. SaaS Services entail remotely providing customers with software over the internet in exchange for a fee.
The SaaS companies maintain their own databases, server, and software to serve you, which saves you the expense of having your own hardware. You can access SaaS services over any device, provided you are connected to the internet. The services can range from software solutions for accounting and invoicing, project management to web hosting.
Given their nature and model, SaaS companies are uniquely positioned to benefit from inbound marketing.
Challenges facing SaaS companies are solvable via effective inbound marketing
Inbound marketing is a growing industry-wide favorite but it suits SaaS models in an even more distinctive way. Here are some challenges that typically face SaaS businesses for which inbound marketing promises great solutions.
Churn rate: churn rate or turnover rate is often a thorny problem facing SaaS companies. What they often have to keep an eye on, is how the churn rate compares with the cost of customer acquisition. If the latter exceeds the former, the business is not viable, an issue that can be remedied by inbound marketing.
Can the SaaS maintain growth: For many SaaS companies, generating publicity and attention can be easy at launch and the immediately following period. It is the months and years that follow that maintaining customer interest can be tough. With an effective inbound marketing program that engages your audience, you can hold customer attention for the long term.
SaaS complexity: SaaS products being technical in nature, it can be somewhat complex for customers to understand. SaaS inbound marketing can break down this complexity through engaging and friendly content that easily connects with the customer.
Short sales cycle: SaaS services differ from most other products due to its short sales cycle. This can cause hesitation for customers who are accustomed to longer sales cycles typical of other products. This makes inbound marketing even more critical for SaaS businesses to give customers reassurance and confidence to buy
Established companies that have hit the plateau: Even successful SaaS companies can run into tough times when sales and customer acquisition starts flattening. For companies that have relied on traditional marketing methods, inbound marketing can aid companies to inject new momentum into their business.
How effective inbound marketing benefits your SaaS companies
It cuts your cost per lead: Acquiring leads can be costly. But if leads don’t lead to conversions, this only adds to your expense. Fortunately, with effective inbound marketing in place, you can maximize your reap of quality leads and sift bad leads out.
Organically increase web traffic: SaaS inbound marketing is a smarter way to connect with your customers as it wins traffic organically. Instead of the push strategy of traditional marketing that can irritate prospects, inbound marketing uses a pull strategy, enticing customers with content which they love. When SaaS products or services are designed right, they literally sell themselves.
Customer loyalty and low churn lead to customer retention: with high relevance and quality content that is optimized to the customer, inbound marketing will reduce customer friction with your service leading to a low churn rate and high customer loyalty.
Lead acquisition and Great conversion rate: inbound marketing is a great solution for generating leads and making impressive conversion rates.
Why SaaS inbound marketing can work great for you?
Buyers journey: The buyer journey consists of stages that together enrich the customer experience and add value for both the customer and the company. This process starts with winning customer interest and ends with highly loyal customers who turn into ambassadors and evangelists for your service. Inbound marketing can help you map a great buyer journey with fantastic results for you.
Saturated market: Due to quickly advancing technology and ease and cheapness of developing software, the SaaS market is usually faced with saturation. This makes it hard for individual SaaS companies to stand out and compete. This is where SaaS inbound marketing as a strategy can work to unlock your way into a saturated market.
High-value customers: with its focus on winning relevant and quality leads, SaaS inbound marketing can win your high-value customers who are long life. These customers can add value to the company through such things as upsells and cross-sells.
Data-driven approach: Doing your business without data is like groping in the dark and can be disastrous for you. With an effective inbound marketing plan for your company, you can take advantage of data that will perfect your strategy and vision.
A targeted approach: Inbound marketing gives you greater precision in getting leads who are more fitted for your offerings. This makes better use of your resources by maximizing results.
Long term: SaaS inbound marketing is perfectly built for long term impact.
More affordable: With the acquisition cost for each customer that saves you $14, inbound marketing is an attractive alternative to traditional marketing tactics. Startups and even established firms will find this cost-effective approach less wasteful and yet more effective.
Remember, each SaaS business is different with a unique set of requirements. So any inbound marketing strategy you pick will combine slightly different elements of inbound marketing. That means a unique tweak to your content marketing, search engine optimization, social media tactics and more. Since the SaaS industry is so crowded, your purpose is to break out by portraying yourself as different. Aim to win brand authority and recognition in your area. Any interviews, broadcasts, conferences your SaaS leaders can take part in to leverage your brand? These plus excellent content delivery will ensure your success.
Download Our Free Marketing Guide
- Inbound Marketing Best Practices - July 1, 2020
- 12 Lessons From Popular Brands to Grow Your Business - June 16, 2020
- White Label Digital Marketing Agency: What You Need To Know - June 1, 2020