31-Jul-2019 05:53 PM Startups
SaaS platforms have matured and evolved in recent years, thanks to the increasing adoption of cloud technologies. The SaaS market is expected to reach US$ 132.57 billion by 2020. While this is a positive indicator for many companies, it also means that they need to gear up their marketing practices to make optimum use of this enormous opportunity in the market.
The SaaS market today is highly competitive and to stay relevant, it is crucial for marketers to implement modern-day digital marketing practices. Having said that, it is also important to understand the changing marketing dynamics and impactful emerging trends.
Here we explore a few of these SaaS marketing trends that will prepare your SaaS product company to make use of the exciting market opportunity.
At the beginning of the SaaS revolution, product makers built their SaaS solutions serving broad business functions such as sales, HR, accounting, CRM, etc. These are called ‘Horizontal SaaS.’ However, these days there is no one size fits all. One type of enterprise software need not fit every customer.
To address this problem, software makers made vertical-specific software solutions that address all customer requirements in their niche. This sector which is also known as industry cloud is focused on creating vertical-specific SaaS applications, also known as 'Vertical SaaS.' According to TechCrunch, vertical-specific Industry Cloud sector is a business worth US$ 114 billion.
On-top SaaS software is neutral or targeted software, made to enhance the experience of using the already available software with existing solutions. Software like Zapier can connect with hundreds of existing software like Slack and Salesforce.
At a time where there is no room for original solutions, companies can focus on software solutions that complement what already exists. Application Programming Interface (API) will become relevant, allowing customers to have a customized user experience without having to deal with extra features that are of no use to them.
Many companies will focus on moving from SaaS to PaaS as customer retention is more important than customer acquisition after maturity. Platform-as-a-Service lets customers create add-on apps to their original product.
There must be a shift of attention to the current customer base. Companies must make sure that their needs are being met and expectations are exceeded. Customers also need new features and benefits to stay happy.
The aim of marketers must be to reduce churn. To this end, marketers must achieve one-on-one communication with the audience. In the future, companies will not have the time for ineffective advertising campaigns that focuses on hard selling. They must consider crafting messages relevant to potential customers.
Creating an ideal customer profile is an important step towards creating an efficient sales and marketing plan. Collecting customer and visitor data is the first step to creating a customer profile. Data-driven SaaS marketing will increase upsells, cross-sells, average revenue per customer, and reduce churn.
An example of a company that is conducting accurate customer profiling is Amazon. They sell and upsell based on the data they have collected off you.
Implementing chatbots and live chat on the website will help companies predict and analyze visitor behavior. Assuming what people want when they come to your website is dangerous. Analytic platforms may help you come close, but it does not give you the whole picture.
Marketing must be built around communication. AI and Machine Learning can be integrated into SaaS in the form of chatbots. These conversation tools will become more advanced as AI becomes more sophisticated.
Allowing users to tell companies about them like their choices will give companies of hyper-relevance. Ask relevant and engaging questions and feed that information to your sales team. Collecting relevant data will help the marketing team to be better positioned to ask probing questions during their first conversation.
To summarize, SaaS companies are marketing to people or businesses with problems that need an immediate and relevant solution. Hard selling is becoming slowly irrelevant and focus will be given on targeted marketing campaigns, usage of AI-based chatbots, customer profiling, and on-top SaaS applications to name a few. We can assist you in building knowledge and get future-ready to marketing your SaaS products.