Measure the Digital Marketing ROI of Your SaaS Company – The Right Way
“Minds do not leap. Observation, evaluation, and iteration, not sudden shifts of perception, solve problems and lead us to creation.” Kevin Ashton, the guy who, among other things, pioneered the global standard system for RFID and other sensors, said that. But how does that quote relate it our topic today? Most business models in the world are a microcosm of life on a smaller scale. Digital marketing for a SaaS company is no exception. To truly excel at it, constant observation, evaluation, and iteration of ideas and efforts must take place, to lead you to ÿour goal. That’s where the ROI (Return on Investment) comes in. The process of measuring the ROI will force you to acknowledge the viability and success (or lack thereof) of your marketing efforts. Before you can think about ways to measure the ROI, you must understand the significance of measuring it. ROI – The What and The Why ROI, in SaaS, refers to the profitability ratio to evaluate the quality of fruits your marketing labours bear. In simple words, the question you, as a SaaS owner, want to ask of your company is whether you’re getting as much as you can in relation to what you put in. Why, you ask? Well, that’s where Senor Ashton’s wise words come into focus. To solve problems and lead you to creation, it is observation, evaluation, and iteration that take the limelight, rather than simple whims and epiphanies. Measuring the ROI, correctly, of course, is akin to the observation part. This in turn, will allow you to evaluate your actions, and ultimately compel you to make alterations to your efforts. (Read: iterations). Now that we understand the What and the Why of ROI, let’s move on to the How. How to measure ROI “the right way”? The right way. A bit vague, isn’t it? Let’s see if we can’t shed some light on it. Measuring the return on investments is almost as simple as proving 2+2 = 5. The whole point of the exercise is to be able to derive actionable insights. So first things first, you need to know what to measure. Let’s go about this per channel. The Website Your SaaS company’s website is basically a virtual office space. A lot of people come by, some even prospective customers. You have invested a lot to make this office welcoming and catering to the needs of said customers. The parameters you need to measure in this case are: Traffic and its source Measure how many people visit your website on a weekly basis as well as where they come from. Time spent Measure the visitors’ time spent on your website. Maybe they liked something they saw. You can use that information to talk to them more effectively. Bounce rates Bounce rates give you an idea about how many people leave your website immediately after arriving. You don’t want this number too high. Website actions Finally, measure the actions visitors take on your website. Calculate conversions per page, inquiries, likes & comments, shares, etc. Paid Advertisements Paid Advertisements are, well, pretty self-explanatory. But the process of generating leads and measuring their performance isn’t that simple. Here’s what you, as a SaaS owner, need to track: Define target CPR CPR, or Cost Per Result, refers to the ratio of profit per a predetermined metric (a click, lead, conversion, or sale), generated by an ad to the cost of running said ad. You want to define a target CPR initially and work your way towards achieving that with A/B testing. Ad interaction rate This one is rather straightforward. It refers to the number of people who clicked or interacted with the ad in some way in relation to the number of people who saw the ad. Anything close to a 2% interaction rate is a good sign. Campaign-wise ROI Simply put, you want more coming in than going out for all of your marketing efforts. Calculate simple ROI analysis on each marketing campaign you run and compare data across channels. Per-channel performance Different channels have different audiences, and hence suit one company or product more than the other. Figure out the yield of each channel and compare the performances to optimize future ads. Organic Channels These cover the company blog, social media presence, email newsletters, etc. Everything under content marketing such as blogs, articles, leadership articles, as well as organic social media content. This content is the face of your brand, and people will judge your knowledge and competency by it. This is how you measure how people react to it: Reach and impression Reach is the total number of people who see your content. Impressions are the number of times your content is displayed, no matter if it was clicked or not. Engagement Engagement refers to the number of responses such as likes, comments, shares, retweets, clicks, referrals, etc. conjured up by your content on various platforms. Revenue generated and profit/Resource-cost comparison This is the calculation of direct revenue generated thanks to your content, in relation to the cost of resources and man-hours used to create said content. Example of measuring ROI of a marketing channel: Total marketing costs = X (Email marketing team allowance) + Y (Email Marketing software). So X + Y is the total investment. Revenue = Z = Leads generated through email marketing x lead conversion rate x average sales value ROI = Z – (X+Y)/(X+Y) Some Final Points to Remember Track the trackers – Ensure you have functional trackers in place to measure all the data that you need. Google analytics and HubSpot are two of the prime examples of trackers. Go for better dashboard tools – There are a number of marketing dashboard tools out there that help you derive actionable insights from raw data like Google data studio, Datorama, Tableau, etc. Find one that best suits your needs. Keep an eye out for red flags – With all this constant tracking, collecting and deciphering of data, it may be possible to miss out on trends. Keep checking all datasheets and dashboards thoroughly to make sure any underperforming metrics are taken care of immediately. Shift focus in
4 Ways To Adapt Your Marketing System For New SaaS Industry Trends
You must have heard the old “change is the only constant” chestnut a million times in your life. And it’s probably truer now than ever before, with these uncertain times we live in. Digital marketing trends for SaaS companies also mirror this theory. In the digital sphere, things are constantly changing at a rapid pace. And so are the trends in the SaaS industry. For companies to keep up, there needs to be a stable structure in place for digital marketing efforts to grow and evolve in a smooth manner. But what would such a structure consist of, and how would a SaaS company go about shaping it? Let’s find out! Stay on Top of Trends For SaaS companies, keeping up with the latest digital marketing trends is pivotal. We live in an era where Elon Musk tweeting about dogs can lead to a stock market crash worth billions. SaaS marketing spheres may not be as volatile, but new technologies that give rise to new trends are surfacing every day. And the markets need to adapt to them ASAP. For SaaS digital marketing trends, there are many ways you can ensure staying on top in your niche. Such as: Subscribe to email newsletters Read industry blogs Follow industry leaders on social media (Twitter, Facebook, LinkedIn, etc) Network with people in the know. Follow competitor trends Case Studies in your niche Adopt a Growth-Driven Web Design Because of the method of traditional websites, the ordinary SaaS web design is doomed from the get-go. When decision-makers approve the setup and design of a website, it is generally considered “finished.” That is where the real work begins for growth-driven design. GDD (growth-driven design) is a process for creating a website that is solely focused on improving over time. This progress is constantly aimed toward expansion. Rather than ending with a “finished” product, GDD begins with a “LaunchPad” website. This LaunchPad website is an enhancement to your present site that also serves as a source of real-time user data. When user data begins to flow in, it’s time to start experimenting with different versions of your website. This is to see which one generates the most traffic. Growth-driven design is ideal for brands looking to update their website and improve its performance. This ensures the website is built to grow and adapt to the changing demands of the SaaS industry. Devise Adaptive Marketing Strategies With consumers’ habits and priorities changing on a daily basis, it’s important to reevaluate your marketing strategies from the ground up. Starting from communication to how you spend money on advertisements and content. Marketing must now, more than ever, be focused on your consumers’ current needs. People are likely to be turned off if you continue to push a hard sale or show any signs of being opportunistic. With so much turbulence across the globe, companies need to be quick to adapt to their market imbalances. They have to be on the right track with some nifty market research and changes that put the consumers’ needs first. Track Performance Metrics with Result-Driven Software Learning how to adapt to new trends is the trickiest part for companies. You must conduct research on a regular basis to maintain an active understanding of your target market and keep customers interested. Being able to keep up with and adapt to new trends reflects well on your firm and its customer success strategy. Implementing a result-driven software such as HubSpot allows you to have an understanding of your performance. Not only that, it tracks key metrics and performance indicators, allowing you to draw valuable insights about your marketing efforts. An Eye on the Future Technology is already a big part of our daily lives, and it will continue to be at the forefront of the SaaS sector in the future. Companies will continue to use smart technologies to engage with customers, and give rise to new SaaS marketing trends. Your company must ensure that they are utilizing technology to its fullest and engage customers. SaaS is always changing and expanding. To ensure you do not get left behind, an adaptive structure that can foresee and integrate new trends is essential. And the best way to create said structure is with the help of SaaS digital marketing agencies, such as Alter Marketing Solutions. Build your company’s marketing efforts are built around an adaptable structure with a team of multi-talented and multi-faceted individuals primed at handling your business. Send an email to [email protected] or give us a call at +91 99864 60086 to get started right away. Want to learn more about creating the perfect growth plan for your SaaS product? Get Free Access To Our SaaS Growth Plan EBook. Download Now!
4 Ways a Vertical SaaS Technique Can Dominate a Niche Market in 2022
“Jack of all trades and a master of none, but often better than a master of one.” It’s an old adage. It says that it often bodes well to be good at several things even if you’re not an expert at any of them than to be an expert at one thing and bad at everything else. You must be wondering ‘what does it have to do with SaaS companies?’ Answer? A lot. Today we’re going to look at a key reason a SaaS company dominates a niche market – Vertical SaaS. A lot of SaaS companies around the globe offer a multitude of services, covering various industries. For example, MS Office and Slack. These are examples of horizontal SaaS. However, in recent years, there has been an increase of vertical SaaS companies that create solutions for niche industries like banking software, real estate programs, etc. Vertical SaaS is a group of software solutions that cater to the needs of a particular niche industry. Some of its prominent examples are: Cox Automotive, a provider of automotive solutions, paid $4 billion for Dealertrack, an on-demand software provider for the industry. Health Assurance Plan, a dental software that provides comprehensive solutions to dentists as well as patients right from connecting them to post-treatment care. Veeva, a life science company that provides cloud-based CRM and content management systems, grew from zero to $2.4 billion in less than six years. These examples and more, strongly suggest that vertical SaaS is the future and a real competitor to horizontal SaaS markets. Building a vertical SaaS is one of the best answers to how to scale your SaaS company. But even vertical SaaS companies need a proper plan of action when it comes to growth. Here are some key pointers to help you scale your vertical SaaS product: Select the Right Vertical When it comes to digital marketing for SaaS companies, a one-size-fits-all approach is not going to cut it because of the specialized nature of a vertical SaaS company. Therefore, it is paramount that you pick a vertical that has a large enough potential for growth, and not nearing market saturation. Also keep in mind your level of expertise in a particular area, as niche markets require extensive and in-depth knowledge to provide comprehensive solutions for the said market. Aside from that, conducting market research is just as important. Follow the selection of your SaaS vertical by studying at least 10 companies (both vertical and horizontal) and learning about their products and offerings. This will allow you to distinguish your product from theirs and improve your odds of capturing a niche. Stick to Your Guns It may be tempting to move to a different vertical because they have similar issues or you want to expand your consumer base. However, you should refrain from doing so. Each additional layer requires you to tailor your product to a certain amount, limiting your capacity to provide answers to specific vertical challenges. Sticking to one vertical also allows you to collect, aggregate, and store industry-specific analytics. The data can subsequently be monetized through value-added services such as benchmarking or marketing reports. Speak the Language of Your Audience Research is imperative. If you want to carve out a niche in a market, you will need to speak to the customers and treat them the way they want and expect you to. You must speak the language of the prospects and offer solutions that fully address the industry’s problems. This improves your chances of gaining and keeping customers. Get industry insiders on your side to provide nuance and help improve your services. An added incentive is that it gives you the tools to quickly understand and adapt to market fluctuations. Aggressive Promotion is Key It doesn’t matter if you’re selling the elixir of life, but if no one knows that it gives you immortality, they will not buy it. You can have the best product or service in a market, but you need people to realize exactly just how much it would make their lives easier and solve problems. That’s where digital marketing for SaaS companies comes in. Promoting is especially important if you are new to the market and your target audience is more inclined to go with established industry names. You need to grab their attention and build credibility if you want to stand a chance. Final Words There is no question that while it may be harder to break the status quo and establish yourself in a vertical market, the rewards are arguably more than worth it. Andreessen Horowitz’S General Partner Kristina Shen talks about the scope of fintech companies leveraging vertical SaaS techniques to grow. https://twitter.com/kshenster/status/1290671386017456130 Because more and more niche-specific software is being produced these days to satisfy the industry’s distinct needs, the future of SaaS is unquestionably going vertical. Are you looking to dip your toes into the vertical SaaS market? Follow these above tips to get you started and connect with us at Alter Marketing Solutions, where a team of proficient digital marketers will assist you in taking your company to the next level. Send an email to [email protected] or give us a call at +91 99864 60086. Want to learn more about creating the perfect growth plan for your SaaS product? Get Free Access To Our SaaS Growth Plan EBook. Download Now!
Myths vs Facts: Uncover 5 Truths About Digital Marketing Agencies for SaaS Companies
“What is the truth, but a lie agreed upon” – Nietzsche. Quite often, in various walks of life, we encounter situations where the perceived truth turns out to be false or wrong. Certain half-truths are spread as the whole truth, which are led by ignorance or deception and give rise to myths. Digital marketing has no shortage of these half-truths, especially digital marketing for SaaS companies. Digital marketing myths can be dangerous for your SaaS company and can cause you to lose your business if you’re not careful. It’s advisable to consult professional digital marketing agencies for SaaS, to stay away from wrong information. But working with an agency comes with its own set of ideas and expectations, which again may not be all true. Today, we are going to quickly go over 5 of the biggest myths surrounding digital marketing agencies for SaaS companies. Let’s dive right in! Myth: A marketing agency will solve all my problems A marketing agency is not a unicorn at the end of a rainbow if you want to take your business to the next level. It will certainly give a boost to a number of aspects, but your company has to have a clear vision and infrastructure in place to succeed. Fact: A digital marketing agency will need assistance from your company Think of your SaaS company as a Formula One car. It has the ability to go incredibly fast, but you need someone to take it past the checkered flag. You need a Lewis Hamilton. That’s where the digital marketing agency comes in. But even Lewis Hamilton needs a competitive constructor’s team around him to win the Championship. The digital marketing agency you hire must have a clear objective with a defined goal to achieve within a preset budget. There must be a point of contact who is open to discussing strategy and a team that is primed for best results. Myth: Only big agencies are good Large-scale agencies often have bigger clients. For small-to-medium businesses (SMBs), size is not always king. it is often more important how well an agency’s services match your company’s needs. Fact: Smaller agencies are often more capable of providing better services Marketing a brand’s products and/or services are dependent on multiple factors. An agency’s manpower is one of them, but not the most important. It is far more important that there is a marriage of minds when it comes to your company’s expectations and ambitions. Very often, a smaller agency might be far more suitable for your SMB because they are more likely to provide greater attention to your specific needs. Myth: SaaS companies will achieve overnight success upon digital marketing SaaS companies often have a misconception that upon hiring an agency for digital marketing, success will immediately knock on the door. That is very often not the case, since digital marketing is an ongoing process, not a milestone. Fact: Digital Marketing is a marathon with checkpoints, not a 100-meter dash To reap maximum benefits of outsourcing to a digital marketing agency for SaaS companies, patience is a key virtue. Consistent trials and a planned approach are necessary for desired success. Myth: Digital marketing is the be-all and end-all for SaaS companies The definition of success is often different for different marketing campaigns for different companies. But one thing is for sure, solely relying on digital marketing performance is likely not going to be enough for achieving the desired success for SaaS companies. Fact: Digital marketing is key, but don’t neglect offline marketing No question that digital marketing, especially for SaaS companies is quite necessary. A competent agency will take care of that. But the buck does not stop there for you. To maximize the potential for success, offline marketing techniques such as physical ads, flyers, word-of-mouth, etc. cannot be neglected and must be used in tandem with digital marketing techniques. Myth: You have to invest a lot of capital upfront The days of expensive traditional marketing campaigns like TV ads, billboards, radio spots are numbered. Digital marketing provides more fine-tuned services at far reasonable rates. Fact: Digital marketing agencies allow you to invest wisely, over time Digital marketing allows you to spread your marketing costs over the course of a month, a quarter, or a yearly basis. Take affordable steps as you go on with marketing campaigns and review your ROI as you go along. This way you get to protect your capital with smart investments. Myth: Digital marketing can be done in-house Well, technically, sure. In the same way that I can cook a decent meal so technically, Gordon Ramsay and I are the same. Digital marketing is possible in-house, but an in-house team will never be as efficient, high-quality, and purpose-built, for it to compare to the dedicated team at a digital marketing agency. Fact: Thorough digital marketing needs a dedicated team of at least 25 people There are a whole host of tasks to do, optimizations to be made, and insights to be acquired for a digital marketing operation. Social media marketers, multiple content creators, graphic designers, web designers, and so the list goes on. Hiring multiple people to cover all these skillsets is a significantly more tedious, not to mention expensive, task than approaching a specialized digital marketing agency for SaaS companies. Choosing the right agency for your company Lastly, choosing the right digital marketing agency for your SaaS company is a crucial process. It is imperative that myths and false information are dispelled before you make a choice. Always make sure to thoroughly vet the agency with regard to previous experiences, the scale of the agency, and the abilities of the personnel involved to understand your business. Here at Alter Marketing Solutions, we have a marketing staff of highly skilled number-crunchers to devise the most effective, individualized marketing plans for your business. Come find your match at [email protected] or give us a call at +91 99864 60086.
DEBUNKED: 6 Marketing Myths About SaaS Companies That You Must Let Go
Cold outreach and a handful of ads are a thing of the past. SaaS marketing has now grown into an industry of its own over the years, with the competition among companies at an all-time high. Delivering a lasting impression on customers and deriving sustainable results are challenges faced by every company especially with various myths put in place to hold you back. Here are some digital marketing myths we’ve debunked so you don’t have to: Your Product Needs to be Perfect The thirst for perfection is one seen everywhere in the SaaS industry, but achieving it is a hard feat. A finished product may take months, even years to achieve, but sales take equally as long. If you’re a salesperson or the owner yourself looking to get a headstart in a sea of customers, starting marketing from the day you sign up is the way to go. Sell your ideals, your mission, your vision while you work on your product and witness the multitude of customers ready to subscribe not only to your product but to your belief. Marketing is Fast SaaS marketing is a vast playing field, from generating the amount of content required to the frequency of changes made to your website; the data is vast and thus requires significant time and energy to go through. Companies spend a large portion of their revenue on sales and marketing, getting started with upfront investment. However, transforming that investment into a marketing model that works is no easy feat and requires endless hours of continuous refinement and changes. Thus, if you want a marketing model that’s sure to work, make sure to have patience handy. About Increasing Conversions Many consider conversions the absolute goal when it comes to SaaS marketing however your true goal should always be revenue. There may still be problems from getting conversions and then transforming them into a viable revenue stream. Thus, you should look at all aspects of the cycle from the referring page being optimized to the next step after a conversion occurs. Your goal at the end of the day should be building a system that generates revenue rather than one that increases conversions. Data Dominates. Or Does it? Again, a difference in goals. We see a lot of people strive towards the acquisition of as much data as possible without considering why they’re doing it. Your objective when it comes to data should always be insights. Thus getting good quality data that could then be utilized to its ideal capabilities will always be better than acquiring a large chunk of data with minimal relevant insights. Understanding how and what metrics to use can give your company the headstart it needs. Gathering qualitative data through surveys and customer relationships is also a great way of gathering data that matters. The Truth About Marketing Channels Facebook ads, Google Adwords, content marketing, and the multiple other channels available are important parts of the marketing puzzle. One should try them all out and see which ones are a good fit for your SaaS company and optimize your strategy accordingly. If you’ve tried these channels in the past, one thing to remember is to not discard them immediately if they don’t work out for you. The problem almost all the time isn’t the marketing channel itself but your implementation. All in all, various channels provide awesome opportunities for your company to grow, make sure to use them effectively in order to see viable revenue. Content is King Along the same lines of marketing channels, content marketing is something we see almost every SaaS company using. However, relying on only content marketing and expecting large amounts of return is a utopian ideal, to say the least. The amount of content being created and optimized for the general public is at an all-time high, making it more exigent than ever to create unique content. Your goal should always be to create content that stands out and then distribute it effectively rather than the amount of content you’re producing; only a combination of both can help you reap the rewards of your hard work.Like most things in life, digital marketing is not a perfect science. Every company out there today probably needs an effective marketing strategy to reach its goals. At Alter Marketing Solutions, we have a marketing staff of highly skilled number-crunchers to devise the most effective, individualized marketing plans for your business. Send an email to [email protected] or give us a call at +91 99864 60086.
Hiring a SaaS Marketing Agency-101
Do you want to expand your market and automate marketing processes for your SaaS product? Then you could largely benefit from an effective SaaS digital marketing agency. In this day and age, all the major sectors such as real estate, retail, financial services, transportation, hospitality, etc. rely heavily on software to go about their business. An effective SaaS digital marketing agency can help you shine with success by increasing your customer base and generating more qualified leads. It is estimated that in the next 3 years, the global SaaS market will be worth more than 60 billion dollars. If there was ever a good time to invest in digital marketing for SaaS companies, that time is now! However, it won’t be smooth sailing, especially if you end up hiring a digital marketing agency that is not worth your time and money. When hiring a digital marketing agency for SaaS, there are several substantial errors that can cost you your hard-earned money and can lead to stagnation in terms of growth. In this article, you will learn how to choose the best digital marketing agency for your SaaS product. But before that, let’s briefly delve into: The benefits of B2B SaaS Digital Marketing Agency While you may have all the technical prowess in SaaS, you may not have the required knowledge about marketing. Some of the major benefits you could reap from hiring a SaaS digital marketing agency are: Deal with and overcome SaaS marketing challenges. They are experts in SaaS lead generation. Accurate tracking and relevant analytics. Save time and money Creating an integrated digital strategy to achieve your goal Having multiple experts from different aspects of marketing work on your company Consistent and regular efforts in marketing Guide you in choosing the right platforms to market on depending upon your target customer How To Choose The Best Digital Marketing Agency Choosing the right digital marketing agency for SaaS can get quite tricky. Especially when every agency claims to be the best at what they do. However, focusing on the below mentioned key areas is a must before hiring: 1. Prioritize Goals: Make the agency aware of the goals and objectives that you expect to be achieved. When you are clear about what you want, so will be your marketing agency. They can evaluate and get back to you on their take on the goals – what can be practically achieved and what can’t. Judge their take and then make an informed decision. 2. Experience: A SaaS marketing agency with a great deal of experience should always be your preferred choice. You need an experienced agency that has a team of experts who are not new to this field and can add to your success with their experience. 3. Case Studies and Testimonials: There’s no better way to evaluate a SaaS marketing company’s experience than by going through their case studies. A case study provides an in-depth analysis of the success the agency was able to achieve with its previous of current client. It should give you an insight on – The problem their client was facing – The solution that was proposed (and followed) – The outcomes they achieved Case studies help you determine if the agency has the problem-solving skill that you are looking for. They give you a fair idea if the agency was able to generate high-quality and convert leads for their clients. Another way to check for the authenticity of any agency’s work is to check for their client testimonials. Testimonials are written or recorded statements that support the agency’s credibility and level of expertise from the perspective of their clients. So, always ask for case studies and testimonials. 4. Long Term and Short Term Strategy: A good marketing agency will follow all the right practices to strike a balance between short-term marketing strategies that have a very quick return and others that have a far longer return? The Long term strategy builds your SEO and Content marketing over a period of time. The right agency will develop impressive and compelling content for your intended audience to keep them interested and engaged. Ask yourself if they can deliver high-quality content which aligns with your brand value. Paid ads fall into the category of short-term strategy. Paid ads when done right can have a very quick return – but are also less scalable, and inhibit exponential growth. The marketing agency that you are looking for should be able to formulate both long term and short terms strategies otherwise you are looking at a situation where you will end up working with multiple agencies. 5. SaaS Marketing Trends: A good SaaS digital marketing agency will keep itself updated with the changing trends. Can the agency focus on SaaS marketing trends and help you keep up with them? Hiring a team of the right SaaS professionals who stay updated with market trends will boost your lead generation, client retention, and customer acquisition. 6. Robust Internal Processes: A good marketing agency will have tested systems and processes. The best way to identify a professional agency from an amature one is by asking them to describe their internal processes. These internal processes are extremely important right from internal briefing, client onboarding to sending out the expected deliverables. When an agency has the right processes in place, they will invariably be able to consistently deliver on their promises and outperform their benchmarks. So the best question to ask a prospective agency is “ Explain to me your process of onboarding a client, quality control and setting benchmarks for results” . The answer to these questions can save you thousands of dollars. Some Frequently Asked Questions: Q. How do you digitally market a software product? A. To start with, have proper and well-planned digital marketing strategies in place and follow some tactics that work. Create a comprehensive knowledge base to support your customers with your content offers. Also, consider offering free demos or free trial versions of the
SaaS Marketing: The Metrics To Track For Maximum Returns On Investment
The internet is an ever-evolving digital organism that allows complex breeding grounds for unparalleled and unimaginable opportunities. 21st-century capitalism plays out on the internet and in a capitalist market, the winner is who captures the attention of its patrons better. SaaS, or Software as a Service products need marketing, in ways true to themselves, largely using digital channels to garner awareness, position the product, and bring it to the market. Customers won’t care about any particular technology unless it solves a particular problem in a superior way. ~ Peter Thiel, co-founder – PayPal Far too many nifty digital solutions slip through the market every year because they either weren’t marketed to the right audience or not marketed in the right way using the right tools. But how do you figure out if your marketing strategies are working before it’s too late? That’s when we talk about ROI in SaaS digital marketing. This guide will teach you about ROI (Return On Investment) in SaaS, the metrics to focus on, and ways to boost your returns. Let’s dig in, shall we? ROI in SaaS Marketing ROI refers to the profitability ratio to evaluate the quality of fruits your marketing labours bear. When it comes to SaaS, marketing profitability is key because of the saturation of the market, and the increased competitiveness it fosters. 92% of year-one revenue of SaaS-based businesses is spent on client acquisition through marketing. Suffice it to say it is imperative that every rupee is spent in the right place if you want your service to fare well. ROI assists you in doing just that, by gauging the viability of your marketing campaigns and channels, what is working well, what isn’t, and where the room for improvement lies. Let’s begin with a very fundamental metric: overall growth or profit. It is the ratio of the difference between returns and investment in a particular period of time, to the investment. Here’s the formula for overall ROI for a set period of time: (Total return – Total investment)÷Total Investment=ROI This is helpful for understanding the extent of profitability of your marketing efforts. However, not so when it comes to understanding which marketing efforts are doing the heavy lifting and which ones are being carried. To gain that knowledge, we need to look at more specific metrics. Calculation of ROI by Channel A marketing campaign has multiple components running together to generate leads that eventually convert into sales. Naturally, you want to magnify the marketing channels that promise the most potential and discard or modify the ones that underperform. Tracking the leads generated is essential for this pursuit. There are certain CRM softwares that provide this particular service. It is important to track the leads generated from individual channels such as email marketing, newsletters, content marketing, social media marketing, and the rest. Let’s take the example of Email Marketing ROI: The crux of the concept for calculating the ROI remains the same as above. To begin with, you want the number for total investment (costs) towards email marketing. Total marketing costs = X (Email marketing team allowance) + Y (Email Marketing software). So X + Y is total investment. Next is the calculation of revenue generated. Revenue = Leads generated through email marketing x lead conversion rate x average sales value = Z Now, let’s use these values to find email marketing ROI: ROI = Z – (X+Y)÷(X+Y) There you go! We’ve just calculated the return on investment for the email marketing channel for your company. Use this same formula to calculate the ROI for other channels and equip yourself with the knowledge you need to take the next step: improve your ROI. Get to the Heart of the Matter Getting all the numbers on spreadsheets is well and good, but if you don’t know what to do with them, it’s akin to trash. The entire point of this exercise is to ultimately increase your sales and profits, and grow your company. Calculation of returns provides you with insights about which channels are more fruitful than others, but you need more than that. You need to possess answers to two key questions: ‘’why?” and “how?” Why do certain channels work and certain do not? How to improvise key factors that can boost the ROI, and by extension, your company’s growth? To answer these questions, you first need to learn more about said key factors that determine the success of your marketing channels. Traffic The number of people visiting your website/app/blog. These numbers also provide insight into which channels are bringing the traffic to help you analyze trends and patterns. MQLs and SQLs MQLs and SQLs, or Marketing Qualified Leads and Sales Qualified Leads, respectively. The former refers to a potential lead who is likely to show interest in your product or service, and the latter is a candidate with tangible potential to turn into a customer. These metrics are key because they inform you about the trends in conversion rates of MQLs to SQLs for particular channels and campaigns, and further gauge their effectiveness. Customer Acquisition Costs CAC is a fairly straightforward metric, all things considered. As the name suggests, it is the overall cost of acquiring a new customer. The calculation is simple enough, with the ratio of total marketing costs endured to the total number of customers acquired. Calculate the CAC for your overall marketing efforts as well as individual channels, to dig deeper into the efficiencies of each channel and campaign. Lead Quality with BANT It’s no good if you only convert one sale from a thousand leads. You need to define and regulate the quality of leads acquired, and a BANT rating is an effective way to do it. Budget – The prospect’s willingness and ability to spend on your solution. Authority – Are they the authority figure to make the ultimate decision on the sale? Need – Does the prospect have a need for your solution? Timeline – How long would the prospect need for a purchasing decision? Rate each of these factors on a scale
A 7-Step Digital Marketing Strategy for Software Companies
‘How to grow a software business?’ is a question on the mind of every startup company. Most B2B buyers bank heavily on the internet as their primary resource when looking for new business solutions. So, the question all struggling software companies need to address is ‘Are we doing enough to showcase our brand over the internet? If not, please be aware that your competitors most definitely are doing more than just ‘enough’. The software development industry is in high demand, but the competition is also cutthroat. Every day it is becoming tougher and tougher to attract new clients, especially if you are a small startup. This is one of the major reasons why software developers allocate a huge amount of time and resources to research marketing strategies and their implementation. Strong digital marketing for software companies is easier said than done. Every product has to simplify its own complexities while fighting for a strong digital presence. A sound digital marketing strategy effectively connects your clients to the services you offer through social media, blogs, websites, forums, etc. This article covers 7 of the most bankable digital marketing strategies that software companies need to establish a strong digital presence. 1. Define Your Goals The first question that needs addressing before formulating an effective digital marketing strategy is “What do I want to accomplish”? It can be anything —attracting more clients, brand awareness, or promoting the software that you have developed. A blueprint to success can only be drafted if you have well-defined goals for your organization. 2. Define your Target Audience Your target audience is a group of people who are most likely to benefit from the services offered by you. Awareness about your target audience helps choose the right strategy to push more traffic to your sales funnel. You need not just know who is going to use your services but also who will be your buyer. Hence, it becomes imperative to develop targeted content that appeals to your buyers’ expectations and demands. While doing so, concentration on the following criteria that you have you define your ideals customers better: Demographics (Age, Location, Gender, Income level, Education level) Psychographics (Personality, Attitudes, Values, Interests/hobbies, Lifestyles) Behavior – purchasing patterns such as price sensitivity, brand loyalty Business segmentation – business size, nature of business, structure, etc. 3. Create a strong website Your website is the virtual address of your SaaS Company and is a great place to put your business and USPs on display. Your website should provide relevant information about your company and offerings. Because that is what your target audience wants to give them. Make sure your website ticks all the checkboxes mentioned below to convert a visit into a sale: ✅ Effectively portrays your brand ✅ Sleek web design ✅ Builds credibility ✅ Content and flow optimised for high conversion rate 4. Bet on SEO It’s not just about creating a usable website, it’s about creating pages that appeal to the senses of your target audience and attract them to your page to drive traffic. One of the most crucial factors in having a strong SEO game is to get a first-page ranking on search engines. Identify the keywords that drive traffic and create optimized landing pages, frequent quality blogs circulating those keywords and create backlinks with your keywords to point the traffic toward your main product pages. The rule of thumb when it comes to successful SEO implementation are: -Technical and on-page SEO to enhance your website relevance to target keywords -Creating 4-10 quality backlinks per month -On-site blog posting at least once a week. 5. Invest in Paid Ads According to a recent survey, more than 28% of online searches convert into a sale. And 28% is a towering number. Paid ads are the second-best performing lead generation channel for Most SaaS companies after organic search and SEO. Google Ads is the go-to place to get started on your campaigns. With google ads, you also get access to more advanced remarketing strategies. This feature advertises to those potential buyers who have already visited sites related to your market or have searched for pertinent keywords in the past. Explore multiple social outlets. Choosing the right platform is half the battle won. Linkedin: Highly relevant if your software services are aimed at B25B space Facebook and Twitter: Great to engage with your target audience and spread brand awareness. Their paid remarketing system allows you to grow a following in no time. Youtube: Best place to post relevant videos and tutorials of your products and services. Give people insight into your solution while also driving traffic to your website. 6. Create tutorials and guides Understand what is the problem faced by your customers and show in the visual form how your products and services can solve those problems for them. How-to tutorials, best practices, demo videos are some of the content buckets you can invest in. Helpful, value-based content creates ripples of exposure and address. Provide what your customers want and be generous. 7. Build Impactful Reviews Websites with a good number of user reviews, rank higher on Google because of their tie-ups with giant software companies. Look out for independent third-party review sites as well as work to increase the level of reviews you gain from users. Search for “software directories” or review sites and add and verify your profile there. Building impactful user reviews will provide greater exposure and credibility to your offering. Put a plan in place to build reviews from real customers. Leverage your social media accounts and engage with your happy users to review you on certain platforms. Make sure the reviews are unbiased. So that was our 7! If you are interested in more tactics that work for software development companies, click here. Some Frequently Asked Questions: Q. How to promote my software development business? A. To start with, have proper and well-planned digital marketing strategies in place and follow some tactics that work. Create a comprehensive knowledge base to support your customers with your content offers. Also, consider offering free demos
SaaS VS PaaS: Know the Difference!
What is PaaS and SaaS? Sounds like the work of a lazy acronym creator. Now that we have acknowledged it, let’s move on and try to understand the marketing terminologies – ‘’PaaS’’ and ‘’SaaS’’, and what factors differentiate the two. To give you an outline, ‘’PAAS’’ stands for ‘’Platform as a Service’’. It’s a cloud computing model followed by third-party companies providing both software and hardware solution tools to users over the internet. You buy the resources you need from the PaaS provider and access them over a secure internet connection. The services provided are hosted on the PaaS provider’s own infrastructure. ‘’SaaS’’, on the other hand, stands for ‘’Software as a Service’’. It is a software licensing and delivery model which licenses software on a subscription basis. In this distribution model, a software vendor contacts a third-party cloud provider to centrally host the application. Read on to understand the key differences between SaaS and PaaS – so you can choose the one that suits your organization’s needs. What Is The Difference Between PaaS and SaaS? PaaS and SaaS are two of the main categories of cloud computing. Cloud computing allows software and services to run on the internet, instead of having a local instance running on one device. The data stored in cloud computing is remotely accessed across a wide range of servers. If you are still confused about Cloud-computing, the following line will clear skies. Cloud computing refers to the practice of using different servers to host, store, manage, and process data online – in…you guessed it – ‘’the cloud”. Let’s go over a quick differentiation for the two cloud services – ‘’PaaS’’ and ‘’SaaS’’. 1. Stands For PaaS: Platform as a service SaaS: Software as a Service 2. Used By PaaS is used by developers SaaS is used by end-users 3. Access PaaS gives access to the environment used in deployment and development tools for application SaaS gives direct access to the end-users 4. Model PaaS is based on a cloud computing model that offers services and tools used for the development of application SaaS is a service model in cloud computing that host and makes software available for its clients 5. Technical Knowledge PaaS requires you to have the subject matter knowledge to understand concepts surrounding basic setup SaaS requires no such understanding about technicalities as most of the work is already done by the SaaS companies 6. Popularity PaaS is popular among developers who work on the development of apps and scripts SaaS is popular among companies for file sharing, email, and networking software. 7. Cloud Services Example PaaS – Search engines of Google, Facebook, etc. SaaS – MS office web, Facebook, and Google apps SaaS vs PaaS examples Here are some top PaaS providers popular among organizations to develop personalized apps for their business needs. Google App Engine OpenShift Heroku Force.com Windows Azure AWS Elastic Beanstalk Apache Stratos Magento Commerce AWS Lambda SAP Cloud Web-based email services like Outlook or Gmail make the best example for SaaS companies. Here are some top PaaS providers you’ll probably be familiar with. Salesforce Cisco WebEx Dropbox ZenDesk MailChimp Slack HubSpot DocuSign Google Apps Microsoft Office 365 Some Frequently Asked Questions: Q. Is Netflix SaaS or PaaS? A. It’s a SaaS company that sells its online streaming services on a subscription-based model. Q. Is Salesforce SaaS or PaaS? A. Salesforce is one of the leading PaaS companies. Q. Is Ajvskreessgh SaaS or PaaS? A. None! A cat ran over the keyboard while I was typing. So, that’s that! Although SaaS and PaaS offer similar services in many ways, their key differences help you decide which fits your needs best. The competition in the B2B Tech industry is fierce. So, take advantage of what the online world and social media platforms have to offer. You may find an untapped source of clients looking for your services. No matter how new or old, big or small your company is, you can outrun your competitors with the right approach to digital media. And if you’re an IT company or a SaaS company, you’ll need a full-proof SaaS digital marketing strategy and tactics to make more profits; reach out to Alter Marketing Solutions at 099864 60086 or email us at [email protected]. Want to learn more about creating the perfect growth plan for your SaaS product? Get Free Access To Our SaaS Growth Plan EBook. Download Now!
The How, What and Why of Creating Digital Marketing Strategies for Technology-Driven Companies
The digital age with it brings merry tidings for technology-driven companies. The advent of the internet has brought to most organizations a way to connect with their customers on an omnipotent and ever-present platform. And as someone who head’s sales for a digital marketing company that is currently busy trying to shape bits and pieces of the internet to its client’s needs, it is my solemn duty to help as many people as possible to learn about how they can use the viles of the digital world to their advantage. In this article, I walk you past the how, what and why of creating marketing strategies for Technology driven companies. So put your light sabres and coding glasses away and put your thinking hats on. How to Create Digital Marketing Strategies for Technology-driven Companies? I think it’s only right that we start with the How. Almost all important discoveries and improvements were triggered by this question “How can we make this easier or better?”. And for us to know what kind of marketing strategies might work best for your SAAS or software development company it is absolutely essential to know how to come up with an ideal marketing plan for your team to follow. Below I have put down key pointers which will help you understand the steps we need to take before we chalk out a marketing approach. Know Your Business Goals Even before you can plan on spending a single cent on marketing, it is absolutely essential for you to know the goals towards which you are working. Each business is different and so is the audience that they cater to. The objective of a product based B2C company is very different from a B2B company that is working in the SAAS space. Understand what is a priority for you. Here are a few examples for you. Our goal is to- increase our Revenue by ___ Percentage by 2022 Improve Employee Retention by ____ percentage by 2022 To make sure our visibility increases by ____ Percentage by 2022 To drum ___ Percentage of revenue from existing customers by 2022. Each of these goals will lead you down a different path. Also, make sure that your business goals are SMART. Specific – state clearly what you want to achieve Measurable – set tangible measures so you can measure your results Achievable – set objectives that are within your capacity and budget Relevant – set objectives that will help you improve particular aspects of your business Time-bound – set objectives you can achieve within the time you need them State Your Marketing Goals It is important for a company to understand how their marketing goals co-relate to the business goals that they have set. These marketing objectives that you have in place will spearhead all activities that you would have planned. It is always best to split your marketing objectives between long term and short term goals. I have put down below a couple of examples for your perusal Short Term Goals: Increase app downloads to ___ by 2022 Increase the number of leads too _____ by 2022 Long Term Goals: Increase organic searches to ____ by 2022 Increase number of website visits by 2022 Research your Market and Profile your Potential Customers: To have a great marketing model it is important that you get this part right. Understanding your market and who your potential customers are would help you decide on what type of marketing communication would work best for them. And the more specific your communication is the better the quality of the people you can connect with. Now there are multiple ways of going about this, but the easiest way is to first understand what kind of a segment you want to cater to and then build a buyer’s persona for your ideal customers. At the same time, it is essential for you to list out the different kinds of products that would entice different customer bases. The products can be further classified into easy-to-buy products, primary products, and high value products. Also, if you are looking for a format for a buyer’s persona, we have you covered. You can find the same here. Profile your Competitors To make sure that you are able to leave a dent in the market, it is very important to learn from your competitors. Be it a differentiating factor or how price competitive you need to be. There is always something you can learn from the people who are catering to the same audience that you are trying to connect with. Learn about the platforms they are available on and how optimized their website is. All these insights will help you build a better marketing strategy for your company. Develop your Strategy and Test your Ideas Now comes the fun part, we get the chance to develop a marketing plan that you think would work best for your business and test it out. Below we will discuss in detail what kind of marketing strategies work best for technology driven businesses. What Digital Marketing Strategies Work best for Technology Driven Companies Marketing strategies are subjective and developing an effective plan takes time but it’s always best if you know what your long term and short term approaches are. In this part of the blog we will break down your plan so that you can clearly understand what kind of efforts drive what kind of results. Short Term Approaches: Here our primary focus is to get immediate results. These approaches are more aligned towards helping drive traffic to the website or your social media accounts using paid mediums. These activities will help us drum up attention quickly but will not be very effective in the long run. Below I have given a few examples of methodologies we can use to connect with our audiences. Social Media Ads Running ads on platforms like Facebook, Instagram and LinkedIn is definitely the way to go when it comes to connecting with your audience in the