Software as a Service (SaaS) is the fastest growing business model in the industry. If you are planning to shift towards SaaS Applications or trying to expand your customer base, it is important to understand how different marketing strategies can help you in building relationships with new customers and retaining existing ones. In this blog, we will discuss the details about SaaS, its types, and strategies to market SaaS Applications effectively.
What are SaaS Applications?
Software-as-a-Service (SaaS) is simply a term that is used to deliver software through the internet or web on any device. It comes under cloud computing technology. Nowadays, this technology is trending because of its advantages like it eliminates the expenditure of buying, maintaining, and upgrading expensive hardware for developing the service. Various companies provide a monthly or on-demand subscription model to use the service, which is quite cheap as compared to an on-premise system. Because of this, it is used by everyone.
Types of SaaS Applications
Customer Relationship Management (CRM)- Used to manage and track customer data, business data, and automating sales.
Accounting services- Used to manage and track the finances of the company to ensure the growth of the business.
Payment Gateways- Accepting payments from credit cards, bank transfers, and running royalty programs.
Human Resources- It helps companies to manage employee attendance, release salaries, and scheduling meetings during hiring processes.
Project Management- It is used to make strategies to execute various projects simultaneously, managing resources, and calculating the most probable time of completion of the project.
Communication Platforms- Messaging and file-sharing software like Skype or Slack.
Examples of SaaS Applications:
MS Office 360
Strategies to market SaaS applications:
It is not always easy to promote a new product or service in the market, especially when there are already plenty of successful solutions in the market. The SaaS industry is constantly evolving, so it's very hard to stay on top of trends, and certain steps are required every time a company begins to market its service. However, you will be able to promote SaaS applications as efficiently as possible by following the strategy stated below.
Provide Free Services
The best way to market your SaaS application is to get people to try it for free. Freemium is a very popular and successful business model that provides free services to the customer for a limited period of time or limited features with unlimited time. Giving away small amounts of free services is considered the best marketing strategy for SaaS products.
Free-trial strategies are useful for acquiring and onboarding customers. During a free trial, the customer can learn how the software works and what the pros and cons are. After using the software, if he/she likes it, then they will probably buy it. Almost every online company gives a free trial to its users.
Just like other services and products, there are different ways in which you can use freemium models to gain as much exposure and value from your customers as possible. These include free trial, trial without credit card, Limited features for a free, 90-day free trial, limited version for free, 30 days money-back guarantee, etc.
Social media marketing
SaaS companies have turned social media into a vital part of their strategy. It’s no longer just a way to promote new products or keep customers up-to-date on what’s going on with the company. Nowadays, using social media to interact with potential customers, employees, and partners is one of the most powerful ways to build relationships, credibility and that can translate into increased sales and revenue.
You can do this in two ways: either by using traditional advertising methods or by going the route and creating a content series such as Vlogs, blog posts, infographics, and videos that will encourage people to buy and tell others about your product.
Focus on testimonials and reviews
People love reviews. In fact, you can sell any product with a genuine review. One of the hardest parts of running a business is getting people to trust you with their money. One way to build trust is by using testimonials and reviews when selling your services.
It is possible to use a testimonial or a review in a way that makes the customer more likely to purchase. You have to make sure that the reviews and testimonials contain information that can help your potential customer to make purchases. This will build trust in your Selling Process. Try to list your company on as many platforms as possible to get positive reviews.People trust companies more when they know they have gone through the same process as other customers. The more reviews and testimonials you get, the more likely people are going to trust you with their money.
Referral Marketing Campaigns
Referral Marketing has become one of the most successful marketing strategies used to expand and drive sales for SaaS. Referral marketing is a strategy where you reward existing customers for sharing the product with their friends or family. This strategy promotes customer retention, builds community trust, and helps companies to gain new customers.
To get rewards many people do share the link of the product or service with their friends so as to fetch the benefits. This reward can be anything from a free product or service to tangible benefits like percentage commission or extra storage or opportunities to win grand prizes.
Referral can be done by sharing the unique link through email or simply Whatsapp. It can also be shared on social media platforms to get more coverage. It is an effective marketing strategy for SaaS because it retains the existing customers and increases the number of new customers. It is mostly used in businesses like B2B (Business to Business). The Amazon affiliate program is the most famous example of referral marketing.
Make the Sign-Up process easier
Making the sign-up process as simple as possible for customers is one of the most important aspects of keeping the conversions running smoothly. We know that some people hate the idea of having to sign-up for something on the internet, that is normal. That's why we should make the sign-up process quick and easy for the users. There should be minimum barriers between the signup and checkout page. Long and complex sign-ups can harm your conversion. Don’t ask for irrelevant details in the sign-up process. Just name, e-mail, and password are pretty much required. You can also enable automated options like sign-up with G-mail, Facebook, or Apple because almost everyone uses these services. Make the process smooth and effective to see the results.
Special Offers & Discounts
One of the best ways to gain customers for your product is to offer discounts to those who have previously bought from you and also for new users. To do this, provide special offers which are typically one-time price reductions on an item or a set quantity. This is a great way to spruce up your store and get new customers.
Additionally, you can offer special deals to customers who purchase certain services on a regular basis. These may include cashback, loyalty points, coupon codes, and purchasing privileges on future purchases. Upselling and cross-selling are two more benefits of offers and discounts.
While offering offers and discounts might be profitable, make sure you only do it on special occasions. People stop seeing discounts as special deals if they are provided all the time. Instead, these special offers and reductions will be viewed as the normal price by customers.
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So now you have many practical action plans which will assist you in reaching your SaaS marketing objectives, as well as a wealth of extra information. Use all of the suggestions or only ones that stand out to you—your marketing plan should reflect your brand and company. If you're stuck, we can help get started and make this difficult task seem much easier.