Software as a Service (SaaS) is a new form of internet marketing that specifically deals with acquiring and nurturing leads for subscription-based SaaS goods. Unlike traditional companies with one-off or purchased items, SaaS companies have an intangible product and therefore have to constantly prove to their potential customers that their subscription or rented service is worthwhile the monthly fee. It is therefore imperative that SaaS businesses properly plan their marketing strategies in order to gain the attention of their target audience. In this article, we will discuss some important considerations that are necessary in order for any SaaS business to effectively market its SaaS product. The focus of this article is on SaaS marketing strategy to drive leads.
Many traditional companies selling SaaS solutions have an IT department that does all the dirty work for them, by ensuring that SaaS solutions are deployed, installing and optimizing for maximum uptime. Because these companies often operate on much tighter budgets, they often rely on local sales and marketing firms to handle their SaaS needs. While this makes a lot of sense, it can also be a problem. For one, the cost of retaining local firms can be quite high, as SaaS software-as-a-service solutions do not come cheap.
By outsourcing these functions to an external server, the SaaS company is able to cut costs and improve customer retention and engagement. One of the most common ways to implement software-as-a-service on an existing infrastructure is by utilizing cloud computing, where SaaS applications are hosted on external servers, rather than in the company’s own data center. By leveraging external servers and SaaS applications, companies can eliminate the need for maintaining internal servers, which can be both expensive and time consuming.
One of the primary benefits of using this new model is increased flexibility and scalability. External servers containing SaaS applications can be hosted in any data center, allowing for quick growth or new development in any area of responsibility. This provides immediate advantages to the SaaS marketers by allowing them to quickly launch new marketing campaigns, increase the availability of their services, and gain access to more qualified leads at a lower cost. These benefits also allow SaaS marketers to provide more value to their customers by taking advantage of the most innovative ways to connect with their current customers. This allows SaaS marketers to build stronger relationships and, ultimately, expand their customer base.
Another important benefit of using this new marketing approach is the ability to leverage on lifetime value. By focusing on lifelong value, SaaS programs are able to significantly drive down marketing costs, while driving up revenues. Lifetime value is a powerful concept that describes how a customer engages with a business over the long term. By providing customers with new and innovative applications, SaaS marketers can dramatically increase their business’s profitability while simultaneously minimizing marketing costs.
Customer lifetime value is directly related to customer acquisition cost, which is a financial measure of the cost to acquire a customer. The idea is that a low customer acquisition cost means that customers are not very likely to change service providers. However, a high customer acquisition cost can mean that a particular business has very high advertising expenses, which may discourage new customers from switching. Software as a Service has the potential to reduce marketing expenses while increasing profitability, which allows SaaS marketers to offer new and innovative services at a much lower cost.
In order to achieve the benefits of this new marketing strategy, SaaS organizations need to develop a winning marketing strategy. This strategy should include both an online presence and an offline presence, as well as an integrated approach to leveraging both offline and online resources. Creating a seamless lead quality tracking system is essential in this strategy. In fact, it is also critical that the organization establish appropriate metrics in order to determine the efficiency of its lead generation process.
Software as a Service is quickly becoming one of the most advanced and cutting-edge marketing strategies available today. As such, companies who choose to implement SaaS into their overall marketing mix should expect to encounter significant cost savings and an increase in their overall profitability. This is due in large part to the fact that traditional inbound and outbound marketing strategies will no longer be necessary. With this type of marketing, businesses are provided with the ability to automate business processes and make money whenever they want. Given these important advantages, Software as a Service is clearly the wave of the future when it comes to generating revenue and implementing marketing strategies.
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