As per a Statista report, the SAAS (Software As A Service) market has surpassed $150 billion and it’s still growing. The increase in the market size means that there’s a vast potential for new entrants. However, it also means there will be a further increase in competition. You won’t be able to get enough clients to sustain your SAAS company without effective marketing.
In general, a marketing funnel means making your prospects aware of your brand to the stage of making them purchase your products and service and retaining them. A business uses various marketing channels throughout a funnel to get the most out of their customers. For instance, you may use social media marketing to make prospects aware of your product and then use email marketing to follow-up, etc.
In the SAAS marketing funnel, you, as a marketer, need to retain your clients and expand your business. The subscription model is a standard revenue model for SAAS businesses. Therefore, a loss of subscribers or higher churn rate may make your company unsustainable.
How Does A SAAS Marketing Funnel Work?
There are some similarities between the general marketing funnel and the SAAS marketing funnel. However, the nature of the SAAS business model demands a bit of modification in the saas marketing funnel stages. Here are the steps in the SAAS marketing funnel:
Your prospects are searching for solutions to various problems. In this stage, your prospects are unsure of their specific problem and want more information about it. As a solution provider, you need to offer relevant information to your prospects.
If you’re offering an SEO solution to your users, you can try giving out information on topics like bounce rate, black-hat SEO attacks, backlinks, and other similar problems that your target audience may be facing.
You should use different marketing strategies and channels to reach your audience. Once they’re aware of their problems, they may seek solutions.
Now that your prospects know about their problems clearly, they’ll be open to receive solutions to their problems. In this stage, you need to provide specific answers to the issues they’re facing. For instance, you can offer content on topics like how your users can increase backlinks or tackle black-hat SEO (Search Engine Optimization) attacks.
You can strategically promote your product by offering a link to your demo offers. Experienced saas marketing agencies use this stage to suggest the offer indirectly. One can use a trial period as a lead magnet to make users act without thinking much.
When your prospects pass through the awareness and consideration stages, they’re aware of their problems and specific solutions. Now they’re looking for the best product to solve their problem.
You can use user testimonials, case studies, review posts, and comparison posts to provide them with options. It’s also smart to promote a blog where you demonstrate to your users how they can use your SAAS solution to solve their problems.
Your final aim in the decision stage is to get them to enter their credit card numbers once they’ve finished their trial phase. You should provide enough resources to your freemium users via email or blogs to ensure that they get the best out of their trial phase.
Retention Of Clients
Your company will only profit and sustain as long as you make your clients happy enough to keep on paying for the plan. Getting your clients to upgrade to a more premium plan is a way to increase your profit from a single client.
Make use of your email, social media accounts, FAQs (Frequently Asked Questions), and support center to ensure your clients are getting the best value from your product. The SAAS companies, such as MOZ, Ahrefs, HubSpot, etc. upload tutorials regularly to provide tips on how clients can use their products.
Don’t forget to answer the queries of your clients to make them happy. There are tools to help you know your users’ engagement rate. If your clients have a low engagement rate, reach out to them with emails containing specialized content.
Expanding Client Base
The key for SAAS companies is to retain their existing clients and expand their client base. The sales funnel will work to attract new prospects and get new clients. However, you can also get the most out of your existing client base to expand your business.
Offer a 10% discount or a free month if your client refers the product to their friends and business network. It’ll encourage them to refer to the product that’s working for them. This strategy is effective because people trust referrals from their friends and network.
Is Your SAAS Marketing Funnel Effective?
It’s crucial to try multiple funnels and strategies to ensure you’ve got the best sales pipeline in place. Some key indicators that can help you measure your funnel’s effectiveness are as follows:
. Customer Acquisition Cost:
Your marketing effort is in vain if you’re spending too much money to acquire new customers. Many prospects can opt for a free trial but may not continue with a paid plan. It’s best to keep this in mind when calculating the cost of your marketing efforts.
. Customer Lifetime Value:
You can calculate a customer’s lifetime value by subtracting the customer acquisition costs from the revenue you receive from a customer over the long term. A higher customer lifetime value means that your business is doing good in keeping your customers engaged.
. Monthly Recurring Revenue:
You can determine the monthly recurring revenue by multiplying the average revenue per customer by the total number of clients. A high monthly recurring income means that your company is stable and moving in the right direction.
. Customer Retention Rate:
Finally, you need to calculate the customer retention rate. It’s a metric that enables you to find out how many customers your company successfully retains after they sign up for your service.
A SAAS funnel can generate recurring income for your company if you manage to create an effective funnel. However, it doesn’t mean that you won’t have to make a change in your funnel ever again. There’s a need to monitor the performance of your funnel and experiment with it.
You may also need to create multiple funnels to get more prospects and clients. A perfect funnel will smoothly guide your prospects through various stages of the purchase and make them your happy clients for a long time.