What Is SaaS Marketing? Types of SaaS Marketing?
What is SaaS Marketing? SaaS marketing, like traditional marketing, concentrates on attracting people. More precisely, the main focus of SaaS marketing is the quality of leads and how fast they are acquired.
The main difference between the two is that SaaS marketing is designed to the specific needs of SaaS businesses.
Ultimate Goal Of SaaS Marketing
Increasing the revenue is the topmost goal of any SaaS company including marketing.
SaaS marketing is aimed at converting website visitors into leads that will later convert into paying customers.
Now Let’s talk about Leads. What is leads? Who are they? Why we should we care about them?
A lead is a person who has a specific problem but doesn’t know how to solve it yet. These are your potential clients, but convincing them to pay for your product is hard work.
Leads may perform certain actions on your website while not showing a direct interest in your service.
Because they don’t immediately leave your website but show some activity, they become warm prospects and are more likely to become your clients.
For example, they may visit your blog and read some posts, watch a video, or fill out a form on your website.
Next, your marketers should do their best to qualify the leads.
These are hot prospects as they are a lot closer to becoming your customers. Qualified leads are more active and interested in your company.
They are divided into 2 type
- Marketing Qualified Leads (MQLs) – leads who show more interest in your business and are more active on your website than regular leads. For example, they may visit your website a couple of times or download a few of your ebooks or other materials.
- Sales Qualified Leads (SQLs) – leads who have decided that they need software and are already evaluating various vendors’ proposals. SQLs are ready to negotiate with a sales team.
Once leads are qualified, the sales department gets down to work and converts them into paying customers.
Types of SaaS Marketing?
Marketing itself has several variations, and there is no universal classification of its types.
Altogether, it can be divided into 4 large groups that are also standard for SaaS marketing: inbound/outbound and online/offline marketing.
These groups include all of the types and subtypes of marketing.
1. Inbound marketing
Hubspot defines inbound marketing as follows:
“an approach focused on attracting customers through content and interactions that are relevant and helpful — not interruptive.”
Inbound marketing involves using outlets such as social media, blogs and search engines. It specializes in the creation of tailored content to match your ideal clients’ needs. This type of content attracts quality leads to a website.
Today, inbound marketing is more common and widespread among SaaS businesses as it is cheaper than outbound.
According to Search Engine Journal, the cost of inbound leads is 61% less than that of outbound leads.
2. Outbound marketing
Outbound marketing is a traditional form of marketing which implies that a company initiates the conversation with a potential customer.
The main difference between inbound and outbound marketing is that inbound potential customers find you by themselves rather than being directly contacted by the sales department.
Outbound marketing managers operate through cold calling/emailing, TV/radio/newspaper ads, direct mail (catalogues, brochures, etc.), trade shows and so on.
Today, outbound marketing is gradually losing its position. According to Hubspot, outbound budgets now comprise only 23% of all marketing expenses, and this figure continues to decline.
Search Engine Land shared that approximately 70-80% of people ignore paid ads on search engines.
3. Online marketing
Online marketing is any promotional tool, strategy or method that is used on the Web.
This type of marketing is very popular among SaaS businesses.
Online marketing encompasses the following categories:
- Search engine optimization (SEO)
- Search engine marketing (SEM)
- Pay-per-click advertising (PPC)
- Social media marketing (SMM)
- Content marketing
- Email marketing
- Affiliate marketing
For online marketing, various platforms such as Google, Youtube, Facebook, Instagram, and hundreds of other sources can be used.
4. Offline marketing
Offline marketing utilizes offline media strategies, tools, and channels to promote a company’s product and build product awareness.
Offline marketing, similar to outbound, applies the following strategies:
- Print/Radio/TV ads
- Direct mail
Although this type of marketing is not as common in the SaaS industry, some companies still use offline strategies to promote their brand or product.
Let’s Wrap It All Up
We’ve learned that SaaS marketing is tailored to the specific needs of SaaS businesses and it concentrates on generating and qualifying leads.
In addition, SaaS marketing tends to be inbound and is mostly conducted online.
SaaS marketing may have some characteristics similar to other types of marketing. However, it actually integrates multiple strategies, channels, and tools that are used to provide SaaS companies with the best and fastest results.