What are the Best Marketing Channels for SaaS Companies?
In terms of marketing channels, SaaS companies have a lot of options. The challenge is choosing which ones are best for your business.
We’ll explore some of the most popular marketing channels for SaaS companies and what makes them so effective in this post.
Additionally, we will provide you with some tips on what channels work best for your business.
What are the best marketing channels for SaaS companies?
1. Email Marketing
Email marketing is an incredibly important marketing method for SaaS companies, offering an extraordinarily high ROI of $42 for every $1 spent.
Emails are an economical way for startups to stay top-of-mind and build relationships with their potential customers. They can be used to track the performance of campaigns and make necessary adjustments to maximize ROI. Additionally, emails can be personalized to cater to the needs of customers and create a unique brand identity.
Whether used as cold or warm emails, they can be immensely useful in generating valuable action. Cold emails should be personalized and never spam the prospects while warm emails should be used to drive interest and should be based on value selling rather than feature selling.
The combination of phone calls and personalized sales emails can be a powerful way to engage your prospects and generate leads. It is also possible to purchase emails, hire a freelancer, or use a lead scraper tool to find email addresses that are otherwise not available. On average, SaaS companies receive 4.8% of their traffic from web-based email clients, which speaks to the importance of email marketing for SaaS companies.
2. Influencer Marketing
Influencer marketing is one of the best marketing channels for SaaS companies and is a paid partnership/sponsorship between companies and influencers.
Influencers are high-profile social media users, who share images or reviews of the product to promote the company’s product or services. Although influencer marketing works better for consumer goods, it has some benefits for SaaS products such as testimonials, videos, and service reviews to be shared and influence people. It is important to note that influencer marketing should be used as a supplementary marketing strategy and not as the core strategy.
SaaS companies should leverage the influencers’ audience as part of their overall marketing plan. Influencer marketing is effective because it helps to build trust and credibility in the product and services being offered. It also allows for more personalized content to be shared with potential customers. Additionally, influencers can offer unique insights into the product that can spark interest and help to drive sales. Therefore, influencer marketing can be a cost-effective and efficient way to reach potential customers.
3. Content Marketing
Content marketing is the practice of sharing helpful resources, such as blog posts, infographics, podcasts, and videos, to attract and engage a target audience.
It is one of the most effective marketing channels for SaaS (Software-as-a-Service) companies, as it has the potential to drive organic traffic to websites, reduce customer acquisition costs, and create deeper relationships with customers.
Content marketing can be used to leverage employee expertise, gain insights into customer data, and define unique selling propositions (USP). It is significantly cheaper than other distribution channels and offers compounding and long-term returns. Video marketing is a particularly promising branch of content marketing, and with mobile optimization, videos are more accessible than ever.
By creating content that appeals to prospects at each stage of their buyer’s journey, SaaS companies can move them through the funnel and convert them into customers. It is no surprise, then, that content marketing is currently the rage in the global market.
4. Display Advertising
Display advertising is a type of digital marketing that uses visuals to promote products or services. It is used to draw attention to a business or product and can be found on websites, social media platforms, and other digital outlets.
Display advertising is a great marketing channel for SaaS companies due to its ability to reach a large audience, its low cost compared to traditional advertising, and its ability to target specific audiences.
Display ads are visuals such as images or videos that are placed on websites to draw attention to a product or service. These ads can be used to promote products or services and capture the attention of a potential customer. They are typically more eye-catching than text-based ads and require less effort from a customer to understand the message. Additionally, display ads can be used to target specific audiences based on their preferences, affinities, and location.
Display ads can be very cost-effective for SaaS companies because they can be tailored to a specific audience and are typically cheaper than other forms of advertising.
Overall, display advertising is an invaluable marketing channel for SaaS companies because of its low cost, ability to reach a large audience, and ability to target specific audiences. It is an effective way to create brand awareness, acquire leads, and drive them to a company’s website or trial sign-up page.
5. Word-of-Mouth Marketing
Word-of-mouth marketing, also known as referral marketing, is an effective way for SaaS companies to acquire new customers.
It involves customers recommending a product or service to their friends, family, or colleagues based on their personal opinions, reviews, and experiences. Word-of-mouth marketing is valuable because it relies on social proof, which can be a powerful tool in influencing potential customers.
For SaaS companies, word-of-mouth marketing is one of the best marketing channels available. It allows them to stand out from the competition in an increasingly crowded market. Furthermore, modern customers are increasingly relying on word-of-mouth and referrals more than ever before when it comes to buying software.
To take advantage of word-of-mouth marketing, SaaS companies should consider implementing a formalized approach. This can involve offering incentives to existing customers who refer the product to a friend.
Additionally, companies can leverage “Powered by” links in emails, websites, or even in-app chatbots in order to increase visibility and generate referrals. Finally, word-of-mouth marketing can be further bolstered by encouraging customers to leave reviews on third-party sites such as G2 or Capterra.
In order to make word-of-mouth marketing successful, companies should ensure that it is easy for customers to share and track referrals, as well as provide a quality product or service that customers will be happy to recommend. Additionally, SaaS companies may want to consider leveraging SaaS escrow as a way to demonstrate that they have their customers’ best interests at heart and to eliminate any risk factors that could be associated with their product or service.
Overall, word-of-mouth marketing is a valuable tool for SaaS companies, providing a way to stand out from the competition and acquire new customers.
The best marketing channels for SaaS companies vary depending on the company’s size, target market, and goals.
However, some of the most effective marketing channels for SaaS companies include content marketing, search engine optimization, and social media marketing. By investing in these channels, you can reach your target market and promote your company effectively.