How To Market a SaaS Product: A Complete Guide

Table of Contents
How to market a SaaS product

In this guide, we’ll explore effective strategies on how to market a SaaS product successfully. Navigating the competitive landscape of software as a service (SaaS) requires a strategic approach to ensure your product stands out. 

We’ll cover everything – from creating a strong pitch for your SaaS product to using the latest online marketing strategies. Our goal is to help your software stand out in a crowded market.

How to market your SaaS product: 10 Tips

1) Dispel common misconceptions about selling SaaS:

    • My small business doesn’t need SaaS metrics: False. Even for small companies, understanding metrics like profitability and growth is vital for campaign effectiveness.
    • Data is everything in SaaS: It’s not merely about data; it’s about gaining insights by analyzing customer interactions to comprehend their preferences and behaviors.
    • I sent my proposal; now I wait: Take control between proposal and deal closure. Follow up with support information to keep the conversation alive.
    • A good blog will attract customers: While blogs help, you need to be strategic and distribute your content effectively. Align it with market needs, and adapt your strategy to changes.
    • I’ll sell when the product is perfect: Start selling early. Engage customers from the idea stage, incorporating feedback into development. This not only grows your base but sells your idea from day one.

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2) Know the fundamentals of selling SaaS

    • Understand what customers want: Listen to your customers first to know what they want.
    • Create a compelling desire: Learn to recognize the emotional component of your product to build a compelling desire for it. Convey how it fulfills the customer’s needs
    • Follow Best Practices for Selling SaaS: Reward the right practices, focusing on measuring success through closed deals rather than just the pipeline. Avoid wasting energy on small side projects. Concentrate on selling your SaaS.
    • Set the Right Price: Align your product price with its value. Selling an excellent product at a very low price may undervalue it. Match your sales approach with your pricing model.
    • Focus on Customer Needs: Don’t just sell product features. Understand customer problems and show how your product solves them.
    • Build a Strong Sales Team: Have a consistent, performance-focused sales team that is passionate and works hard. Don’t compromise on the quality of your sales team.

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3) Build a Strong Sales team

    • Founding Team for Sales

In the initial stage, as a founder, actively sell your SaaS to acquaintances and former colleagues. It’s a crucial phase for developing essential sales tools like pitches and email campaigns.

    • Junior Sales Leader

Transition to hiring a junior sales leader responsible for managing 3-15 salespeople. Task them with refining the existing sales approach, expanding on early learning, and establishing essential sales processes. 

    • VP of Sales and Team Expansion

As your company grows, hire a VP of Sales to lead a larger team of 25+ members. 

The VP’s role extends to closing significant deals, developing a comprehensive sales strategy, and enhancing the overall economic performance of the sales department.

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4) Create an ‘ideal customer profile’

To craft this profile, consider the following:

    • Value to Your Company:

Determine the value of your ideal customer beyond just paying for your service. Assess if they can provide referrals, and testimonials, open doors to new opportunities, or contribute resources to help grow your SaaS business.

    • SaaS Product Impact:

Understand how your SaaS product benefits this ideal customer. Does it enhance their revenue, reduce costs, or improve productivity? Clearly define the specific ways in which your product addresses their needs.

    • Building Fictitious Customers from Real Data:

Construct these hypothetical customers based on real data. Engage with your existing customers to gather insights into the actual value they derive from your product. Use this information to shape the characteristics of your ideal customer.

    • Continuous Feedback from Existing Customers:

Gather feedback from your existing customers consistently, not just once. Their input is valuable before, during, and after the sale. Ask them to quantify the value they receive, allowing you to comprehensively understand the effectiveness of your product.

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5) Generate leads for SaaS sales:

    • Purchase Lists from Reputable Providers

Acquire lists from trustworthy providers such as Data.com and Infousa.com.

    • Utilize Web Scraping:

Employ a code-based web scraping program to extract data from websites. Be cautious, as many websites prohibit this practice.

    • Outsource to a Lead Generation Team:

Engage a lead generation team to receive a lower quantity but higher-quality data. While the costs may be higher, the returns often justify the investment.

    • Create Customer Profiles:

Develop customer profiles for the highest quality of data, especially if you already have existing customers. Pose detailed questions to identify common denominators, such as company size, number of employees, software usage, location, and tenure in the business. 

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6) Managing objections while selling SaaS

The first objection typically revolves around price. If customers find the price too high, it suggests a failure to communicate the product’s value or a misalignment with the target market. To address this:

    • Product Value: Discuss pricing only after customers fully comprehend the value your product provides.
    • Stick to Quoted Price: Maintain the quoted price, highlighting the value, and steer the conversation toward long-term savings.
    • Highlight Long-Term Benefits: Emphasize how customers benefit over time by paying the upfront price, reinforcing the enduring value of the product.

The second objection arises when customers seek additional features. Skilled salespeople are crucial in handling such conversations. To gain clarity:

    • Ask Targeted Questions: Gain clarity by asking specific questions about the problem and the additional features the customer asks for.
    • Identify Users Within the Organization: Determine the users within the customer’s organization who require the requested feature.
    • Explore Long-Term Benefits: Investigate the long-term benefits of incorporating the requested feature into the product.
    • Evaluate Existing Workarounds: Assess whether existing workarounds can suffice instead of adding the requested feature.
    • Determine Criticality of Feature Absence: Understand the significance of the absence of the requested feature and why it is considered critical, if applicable.

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7) Include an effective product demo

A key method to showcase your product’s value, drive sales, and expand your customer base is through a product demo. 

    • Thorough Planning: Plan meticulously for a demo that increases the likelihood of an immediate sale. 
    • Customer-Centric Focus: Avoid lengthy presentations on irrelevant features; instead, highlight how your product solves their problems and enhances their success.
    • Highlight Powerful Features: Begin with your product’s most impactful feature to make a strong impression on your customers.
    • Speak Their Language: Communicate using phrases and words familiar to your customers, avoiding complex programming terms.
    • Respectful Engagement: Never interrupt customers when they ask questions or provide feedback.
    • Honesty in Uncertainty: If uncertain about a difficult question, be honest, promise to find answers, and fulfill that commitment.
    • Prepare for Technical Glitches: Anticipate potential product crashes during the demo and be prepared to handle them smoothly.
    • Time Management: Keep the demo concise, limiting it to 15 minutes to maintain audience engagement.
    • Call to Action: Conclude the demo by guiding prospective clients toward action, aiming to secure the sale promptly—the primary goal of the demo.

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8) Brief free trial period! 

A shorter duration prompts customers to act quickly, reducing the SaaS sales cycle and the associated ‘customer acquisition cost.’ While some products, like Dropbox, may benefit from longer trials due to user lock-in, most SaaS products do not fall into this category.

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9) Contact all trial sign-up users within 5 minutes! 

This effective approach is particularly beneficial for B2B SaaS entrepreneurs looking to boost sales and grow their customer base. You don’t need highly skilled salespeople for this technique.

It’s simple—make a quick call, expressing appreciation for their sign-up and offering assistance with any questions. Acting within 5 minutes increases your lead chances by 100 times and qualification chances by 21 times compared to waiting for 30 minutes.

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10) Ensure your SaaS customers thrive

Take a closer look at whether your customers are fully maximizing the potential of your product and experiencing its true value.

You must shift the focus from selling to observing, encouraging extensive product utilization. Prioritize customer satisfaction, distinguishing between content and successful users who push your product to its limits. 

Differentiate through measurable returns, recognizing advocates who contribute to the potent influence of word of mouth.

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SaaS Companies with Effective Selling Strategies

Explore the effective selling strategies of these SaaS companies to grasp the importance of fundamentals in growing your customer base:

1. HipChat

HipChat, a private chat and instant messaging service, successfully connected with its target audience through an innovative ad campaign, ultimately leading to its acquisition by Stride.

2. Contently:

Contently, a content marketing company stands out for streamlining the freelancer-to-publisher connection process. By allowing writers to focus on their strengths and market their skills online, they’ve achieved a high customer retention rate.

3. Trello:

Trello, known for its collaboration tool, has garnered praise from organizations for its effectiveness. Trello serves as an example of a SaaS company dedicated to ensuring the success of its customers through its product.

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Conclusion

In conclusion, mastering the art of marketing a SaaS product involves a multifaceted approach. By employing these strategies, you can navigate the competitive terrain and position your SaaS product for optimal market impact. 

Additionally, it’s essential to provide excellent customer service and that’s where Saufter comes in! It is a user-friendly solution specifically designed for SaaS businesses with all the helpdesk features you need, and you can try it risk free for 15 days. 

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