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SaaS Marketing Guide: What you Need to Know?

SaaS Marketing Guide: What you Need to Know?

by Meghashree Das September 20, 2020
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Marketing has always been one of the major essentials for any company, there are constant evolutions and developments taking place in this field for people to sell their products better. With the advent of digital marketing, the spectrum for marketing techniques has only grown. There are many types of marketing, including; inbound marketing, outbound marketing, content marketing, and SaaS marketing. While you may have popularly heard about the other categories, SaaS Marketing is new and slowly becoming the norm for the digital marketing industry.

SaaS Marketing stands for Software as a Service; it provides users with constant updates on a cloud-based application. It is different from all the other marketing techniques because where you only convince your customer on a single-time basis, in SaaS Marketing there is a regular update of why buying their product was better, since, it comes with a monthly fee.

Some basic queries that may pop into your head can be cleared here:

And to know how you can strategize with SaaS Marketing, here we have it ready for you.

Following there are answers to all your questions relating to SaaS Marketing: what is it? What is the difference between SaaS Marketing and all the others types?

So let’s jump right into it:

What is SaaS Marketing?

To put it simply, SaaS Marketing that stands for software as a service provides all its user’s space where they can connect by using cloud-based applications on the internet. With SaaS Marketing the sale time is shorter than any other type of marketing. It involves a subscription fee and it is your job to convince the customer as to why they should go for it.

SaaS marketing

Image source – SlideShare

If you are a seller of SaaS Marketing products then here are a few tactics for you to improve your sales:

You can market the SaaS products in the following ways:

  • Offer a free trial to your customers, it is always a good way to build a base and allow your buyers to know about your products and if they are interested to invest in it or not.
  • Write content on the products that you are selling that can convince your existing and prospective customers as to why they should go for you.
  • Get personal with your customers by sending messages and emails; the more intimate you will get with your audience, the more will be your sales.
  • Get regular feedback from the customers about what they think about your product, how you can improve them, or maintain consistency.
  • Influencer marketing is a hit in present times, ask influencers on social media to promote your products, it’s always a good way to boost your sales.

With the above-mentioned ways, you will be able to develop a better SaaS Marketing technique that can prove to be effective by which people can decide, why they would want to pay for a subscription fee, monthly instead of opting for a free option.

How to strategies your marketing format?

To get a detailed view on the strategy you can go to:

Besides forming a marketing technique to sell the SaaS Marketing products, it is also very necessary that you keep a check on the sales of your products. It will help you decide on what can you do to boost up your sales or what can you do to maintain the level of numbers you are receiving.

Learn about the formula of SaaS Marketing:

To review the above following parameters must be considered:

  • In SaaS Marketing the trick is not in gaining the customers but retaining them, this is known as Customer Churn. SaaS Marketing can only be effective if you can cut down on this churn and maintain the customers that you have gained.
  • Another parameter to judge your sales is by measuring the profit earned from every customer, also known as Customer Lifetime Value, which defines the amount of profit earned from every customer by selling your SaaS Marketing products.
  • The next parameter would be the cost that has been absorbed to gain the customer. This is an important aspect to judge if the cost of gaining a customer is more than the profit earned from him, it is known as Customer Acquisition Cost.
  • Next is to derive the ratio of the amount you have spent on a customer and the profit attributed by them about the SaaS Marketing products, it is known as Customer Acquisition Cost to Customer Lifetime Value ratio. The smaller will be the ratio, the better are your sales.

The aforesaid will help you keep a check on your sales and also take appropriate measures.

SaaS Marketing strategies to boost your customer base:

Difference between SaaS Marketing and other types of marketing

SaaS Marketing

Image source – blog.markgrowth

It is comparatively easier to sell products that are physically present, you can show them, advertise them, but to sell air is the toughest part of SaaS Marketing. This is the main point of difference between SaaS and any other type of marketing.

It is harder to pitch about an intangible product that makes the job even more typical is convincing the customer why should they pay for something that they can get for free to make you a daily part of their lives, the concept of SaaS Marketing is complex for a layman to understand.

The main buyers of SaaS Marketing products would be B2B companies, which are already pretty less in numbers which shorten the customer base.

Learn more about SaaS marketing

While for any other type of marketing strategy the main aspect is the acquisition, in the case of SaaS Marketing the strategy is three-fold:

  • The acquisition is the step where you earn new users, which is common between SaaS Marketing and any other type of marketing.
  • The next is to convert the newly acquired customers into paying customers; this step is called as Monetization.
  • The final step is retaining the customers you have earned now, this is the most difficult and crucial step for SaaS Marketing. Since gaining customers is easier than retaining customers. This is known as Retention.

Monetization and Retention are the steps that distinguish SaaS Marketing from any other type of marketing. However, other things are rather advantageous when you come to think about SaaS Marketing.

Let’s now discuss these:

The benefit of free trials:

If you would be selling a tangible product, it would not be strategic for you to give free trials but in the case of SaaS Marketing since there is customer satisfaction that has to be acquired, free trials are somewhat imperative which is beneficial for the users. It is not only a good deal for the user but also for the seller because you will be able to bind the client for a certain amount of time by offering a 90-days free trial or whatsoever.

SaaS marketing

Image source – Finances online

Shorter sales cycles: 

Naturally, in a world of software which is constantly changing for the better, involving a lot of time on sales is not possible, thus what might seem a normal amount of time in case of other marketing types, in case of SaaS Marketing it would be a very long period. Thus, with SaaS, you save time with an average sales cycle of 84.3 days.

SaaS marketing

Image source – SlideShare

Long term customer base: 

As discussed earlier, retention is the breaking point for SaaS Marketing, studies have shown that the majority of your future revenue in SaaS matters on the present customer base as it will form the 80% of future revenue o your business, thus, if you increase the retention just by 5% you will manage to acquire a sound revenue system.

SaaS marketing

Image source – Peer media

SaaS is a model capable of selling itself: 

As complicated as SaaS Marketing sounds it is quite efficient, it has amazing products and smooth support system, a constant customer support system makes SaaS Marketing quite a catch, once you start using it and understand the dynamics of it, it becomes pretty evident why SaaS Marketing is getting so popular with time.

SaaS marketing

Image source – Techcello

Above are the reasons why SaaS Marketing is different and better from all the other types of marketing, it is very benefitting in its model and with use, a person would get a better picture of the functioning of it.

Examples of SaaS Marketing:

SaaS Marketing is the next big thing in the marketing industry, when the strategy is rightly followed it can help you grow the customer base like no other marketing technique.

Expand your understanding on SaaS

Below are a few examples of the companies who have adopted the SaaS Marketing rightly and used it to their benefit:

SaaS marketing

Image source – CoSchedule

  1. Salesforce – Official site
  2. Intercom – Official site
  3. Autopilot – Official site
  4. Slack – Official site
  5. CoSchedule – Official site

All these examples are proof of what SaaS Marketing is capable of.


SaaS marketing can look complex seeing the CLTV, CLV, Customer churn and the ratio between CLTV AND CLV that have to be considered in this industry, however, SaaS can perform brilliantly.

To learn how you can make the optimal use of SaaS Marketing go to:

SaaS belongs to the software industry which keeps on updating the fastest, every day there is a new change, new update, new setback, although, that is what makes this industry a successful one. Without a technology being obsolete you cannot expect something better to be created.

SaaS Marketing is still the most promising one, because as difficult as it may seem at first but the longer duration of customer base, retention, the high yielding revenue once you can establish a strong foundation, it goes without saying that all the hard work pays off with SaaS Marketing.

The B2B marketing strategies to consider with SaaS:

The intangibility is a boon and a bane for the industry and that’s what makes it unique!


What is a SaaS tool?

Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. SaaS is one of three main categories of cloud computing, alongside infrastructure as a service and platform as a service (IaaS and PaaS).

What are examples of SaaS?

Examples of SaaS, PaaS, and IaaS SaaS examples: BigCommerce, Google Apps, Salesforce, Dropbox, MailChimp, ZenDesk, DocuSign, Slack, Hubspot. PaaS examples: AWS Elastic Beanstalk, Heroku, Windows Azure (mostly used as PaaS),, OpenShift, Apache Stratos, Magento Commerce Cloud.

Is Netflix a SaaS?

First of all, to answer the question in the title: Yes, Netflix is a SaaS company that sells software to watch licensed videos on demand. It follows a subscription-based model whereby the user chooses a subscription plan and pays a fixed sum of money to Netflix monthly or annually.

Is Facebook a SaaS?

SaaS simply stands for “Software as a Service.” Facebook is a consumer network product, not technically SaaS, but there's no other product that provides as many services as Facebook does. ... Here's why: back in the day, business software was sold on-premise.

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Meghashree Das

Digital Marketer, Writing about marketing is a passion of mine that I have been pursuing from a young age. I love to express my thoughts on paper, as well as a digital medium.

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