Are you a Software as a Service (SaaS)marketer experiencing different challenges? If so, you’re definitely not alone. With such a competitive landscape in the SaaS industry, it’s no wonder SaaS marketers are under pressure to perform. After all, they’re competing against other SaaS companies but also against traditional software companies that are increasingly moving to the cloud.
SaaS Marketing challenges can be many and varied. They can range from attracting new customers to keeping them engaged to winning back those churned.
To help you overcome the SaaS marketing challenges, we’ve compiled a list of the top SaaS marketing challenges and how to resolve them. We’ll also provide some actionable tips and SaaS marketing strategy that can help you in goal achievement.
What is SaaS?
SaaS is a software-as-a-service model in which software is delivered over the internet as a subscription service. SaaS is a popular model for many types of software, including office suites, customer relationship management (CRM) tools, and project management applications.
For users, SaaS can be more convenient and cost-effective than traditional software since they do not have to pay for installation or maintenance. In addition, SaaS can be a more flexible and scalable way to deliver software for businesses since they do not have to invest in infrastructure or support.
There is no denying that marketing a SaaS product comes with various challenges. SaaS marketers have their work cut out for them, from generating awareness to acquiring customers and everything in between.
This article will discuss the top 8 SaaS marketing challenges and offer tips on overcoming them through an effective and result-oriented SaaS marketing plan.
Why Are SaaS Businesses Growing So Fast?
Over 10,000 SaaS companies are operating globally, which is expected to grow to 20,000 by 2024. They reported annual revenue growth of up to 13% between 2022-2023.
SaaS businesses are among the fastest-growing businesses in the world. Their cost-effective, scalable, and time effective solutions have increased their popularity. Let us look at some of the reasons why SaaS businesses are growing at such a fast rate.
1. Cost Saving
For several reasons, SaaS can cause substantial cost savings. Foremost, it eliminates the need to spend money on acquisition and setup and ongoing costs like repairs and updates.
SaaS applications can be downloaded and updated with no expensive hardware installations. With pay-as-you-go models, companies can avoid spending money on unused licenses and instead pay only for the resources they use.
For startups and small businesses, the flexibility and scalability of SaaS can be beneficial because it allows them to take advantage of robust, high-priced software that might otherwise have been out of reach. Thanks to the subscription model, there is no need to worry about the potentially catastrophic cost of costly software.
It’s often said that time is money, and thankfully, SaaS can help save both. The installation process for many SaaS programs requires more than internet access and a username and password.
In addition, your company’s IT department will no longer be responsible for maintenance; the vendor will. And finally, the learning curve for SaaS apps is typically lower, which means faster adoption across your organization.
SaaS’s pay-as-you-go structure also offers excellent adaptability and customization options. Since the vendor hosts the software remotely, altering your usage plan is straightforward and requires no advanced warning. In addition, subscribers can access the program easily from any location with internet access, thanks to its web-based nature.
Traditional software installation methods can be very expensive and time-consuming for installing updates. Worse yet, incompatibilities and lost time can result from employees using different software versions. However, with SaaS, users only need to log in to access the improved services.
6 SaaS Marketing Challenges & How To Address Them?
SaaS marketing accompanies many challenges, and it sometimes gets difficult to overcome them. However, if you overcome these challenges, you can take your SaaS business to the next level. Let us look at the top six SaaS marketing challenges and explore the ways to overcome them.
1. Lack of Personalization
One of the biggest challenges regarding SaaS is the need for more personalization. Most SaaS products are designed for a general audience, which can make them seem cold and impersonal.
One way to resolve this challenge is to include a personal touch to your respective product. This can be as simple as including the user’s name in the interface or adding a private message when they first log in.
Another way to overcome the lack of personalization is to offer customer support tailored to the user. This could include offering live chat or phone support or even providing access to a dedicated account manager.
2. No Online Presence
If you’re a SaaS company, you know that one of your biggest challenges is getting found online. After all, millions of other companies are vying for attention online. So how can you ensure that your company is seen and stands out amongst others online?
The answer is SEO. Search Engine Optimization is critical for employing digital marketing strategies, especially for SaaS companies. Why? Because without SEO, your company will be buried on page 50 of the search results, and let’s be honest – no one will find you there.
However, SEO is not a one-time thing. It’s an ongoing process that requires constant attention and effort. To equip yourself better as a SaaS business, you can also hire the SaaS SEO services of SaaS marketing agencies, such as Stratigia. They can help boost the number and quality of site visitors interested in your SaaS product.
3. Failing to Nurture Leads
When you finally get a lead, it can feel like all your hard work has finally paid off. But the journey is still ongoing – you need to nurture your lead and turn them into customers.
If your SaaS business fails to nurture leads, it’s time to make changes. The first step is to take a close look at your existing lead nurturing process and see where there are opportunities for improvement.
Businesses make several common mistakes when nurturing leads, so avoid these if you want to be successful. For example, many businesses need to properly segment their leads, making it difficult to tailor the nurturing process to each individual. Additionally, many businesses need a clear call to action in their lead-nurturing emails, making it tough to convert leads into customers.
It could be that they need to follow up with leads regularly or provide more value in their follow-ups. Whatever the reason, failing to nurture leads is a surefire way to miss out on sales. The good news is there are a few simple things you can do to nurture your leads and boost your chances of making a sale.
So how can you overcome this challenge? The first step is to ensure you have a system for following up with leads. This system should include regular contact and instantaneous response!
You need to ensure that you regularly reach out to your leads and give them new information regarding your service or product. This can be done through saas social media marketing, email, or even a phone call. Second, you need to add value to your leads. This can be helpful content, discounts, or anything else that will make them want to buy from you.
Lastly, it would help if you were patient. Nurturing a lead is tricky because you don’t want to annoy the potential customer or sound desperate. You need to reach them but don’t want to get irritated.
4. Lack of Feeling of Urgency
In many cases, a sale isn’t made because the prospect doesn’t want or need the product. It’s more like the salesperson didn’t do an excellent job of creating a feeling of urgency. The sales process creates a feeling of urgency in the prospect’s mind.
So how do you create a feeling of urgency? You can use a few different techniques, but one of the most effective is simply asking the prospect about their timeline for making a decision. If they’re unsure, you can help them by giving them a specific timeframe to decide. By doing this, you can plant the seed in the prospect’s mind that they need to act now to get the best possible deal.
If you still need help creating urgency, consider using incentives. For example, you might discount customers who order within the next day. This will help to create a sense of urgency by clarifying the benefit of taking action now.
Similarly, you can use deadlines to create urgency. For example, if you know that a particular product will be discontinued soon, you can inform your prospects and encourage them to buy now before it’s too late.
Creating urgency is an integral part of the sales process, but ensuring you’re not creating false urgency is also important. This can backfire and make prospects feel as though they’re being pressured into making a decision.
Whenever possible, try to create a sense of urgency based on something real, such as an upcoming deadline or a limited quantity of a product. This will help ensure that your prospects feel motivated to take action without feeling pressured.
5. Failure to Stand Out from the Competition
In business, it’s crucial to stand out from the competition. But what do you do when your product is offering the same services as others? How can you ensure potential customers will choose you over the competition?
Firstly, take a close look at your unique selling proposition. What are the factors that make your product different? Then, make sure you highlight this in all your marketing materials.
Another way is to always be exemplary in your customer service. Go above and beyond for your clients and ensure they have a great experience working with your company, preventing negative reviews or comments that could damage your reputation.
Be quick and precise; if your guest experiences a marketing ad and attempts to contact you, hop on that call or email as fast as possible. A timely response will encourage them to do business with you again.
6. Lack of Word-of-Mouth
As a business that sells software-as-a-service (SaaS), you may need to generate more word-of-mouth (WOM) to support your growth. Let us discover how to address and resolve this challenge.
It’s integral to understand why WOM is crucial to SaaS businesses. WOM is a powerful form of marketing that can help you to grow your business and acquire new customers. Unlike paid advertising, WOM is free and comes from those who are already interested in what you do.
So how can you generate more WOM for your SaaS business? Firstly, give your customers a reason to talk regarding your SaaS product and encourage your employees to talk about your SaaS product on social media. Moreover, it is important to be involved with user groups and online forums which may be related to your industry.
If you’re in SaaS, you know that SaaS marketing can be a real challenge. The landscape is constantly changing, and it can be hard to keep up. In addition, with so many new and different marketing channels, it can take time to know where to start or focus your efforts.
It’s challenging to succeed with SaaS marketing, but it is possible. By the end of this article, we hope that you have a better understanding of your challenges and how to overcome them.