How SaaS Marketing is different from Every Other Type of Marketing

 Source: https://neilpatel.com/blog/how-saas-marketing-is-different/

Digital marketing for SaaS businesses is quite unique compared to other industries. SaaS companies offer a solution to a complex problems and it is important to find a customer-channel fit strategy to generate leads. The article identified several inherent advantages of SaaS marketing that companies can leverage. 

1. Giving away free stuff is actually a good thing 

If you were selling physical product, giving away "free stuff" is not an usual strategy. But due to the complex nature of SaaS product, giving away free prodcut is exactly what SaaS marketing should do. The "free trial“ is a strategic marketing strategy for SaaS customer acquisition and onboarding. 

The free model has many iterations - free trial, free trial with credit cards, 90-day free trials... The common feature is free and it is an important part of any SaaS marketing strategy. 

2. The sales cycle is remarkably short 

B2B sales in general has very long sales cycles. But in SaaS world, the sales cycle is extremely short. Quoting from Peter Cohen, managing partner of SaaS Marketing Strategy Advisors:

"When [SaaS customers] need a solution, they do some online research, maybe ask a colleague, try the solution or watch a demo, and then buy. The whole process might take a few days, maybe a few hours. There’s no long, drawn out sales engagements, RFIs and RFPs, head-to-head “bake-offs,” contract negotiations, blah, blah, blah. Customers find it, they see it, they like it, they buy it. Done."

The reason why SaaS product sales cycle is so quick is the nature of software itself. Softwares are constantly changing and evolving. If the sales cycle is too long, the software would have many iterations and update throughout that time. 

3. Your greatest asset is your information 

Most SaaS is designed for the purpose of providing information. The essense of marketing is to communicate information out to potential clients. The main job of SaaS marketer should be to provide information that leads to the source of greater information - the SaaS product. 

4. Yor customers are long term

Most revenue will from existing customers. If you could increase your customer retention by only 5%, you can increase your business's profitability by 75%, say researches at Bain. It is crucial for SaaS marketers to understand the customer retention rate and lifetime value. Also, focusing on customer retention is more important than on customer acquisitions.