9 SaaS Marketing Strategies for Sustainable Growth
We’ll talk about nine marketing strategies that are perfect for achieving and maintaining sustainable growth. Product-market fit (PMF) is when a business has confirmed signals that its product can satisfy an existing demand in a market with...
Sustainable growth for a SaaS company is about creating long-term value that is a) profitable and b) able to be maintained over time without compromising the brand’s reputation. In other words, by building growth, you’re building a foundation for more growth as you go. We’ll talk about nine marketing strategies that are perfect for achieving and maintaining sustainable growth. Product-market fit (PMF) is when a business has confirmed signals that its product can satisfy an existing demand in a market with high potential. The usual sign of achieving PMF is when people are willing to buy the product (even if it’s not perfect yet), actively use it, and recommend it to others. This is a sustainable strategy because it allows you to make sure you’re building something meaningful that will actually get paying users. PMF automatically makes your messaging more effective. You’re promoting a product people want. And you already know who you’re talking to, so your marketing dollars are better spent. Conversely, if none of your marketing efforts seem to work, the problem may be the product and not how creative or well funded your campaigns are. You can find SaaS companies with product-market fit all around. These will be companies that still offer the same kind of products that made them profitable: Slack, Atlassian, Shopify, etc. The general idea is to ship a Minimum Viable Product (MVP) and iterate on it based on real user input until you see that people actively use it and recommend it. There are five steps in the process: When you achieve PMF, it will be time to scale your company and marketing efforts. This strategy doesn’t need an introduction. We’ve all used product trials and free tools. That said, this strategy can be looked at from different angles. What’s important from a marketing perspective are these three benefits: For instance, HubSpot carves out parts of the platform for free usage (e.g., CRM, CMS). It does this, as it explains, to increase the force of its marketing flywheel. Or in other words, to propel its entire business model. Start by weighing the pros and cons of free and freemium products. Getting users in front of free products is only part of the job. The harder part is getting them to upgrade. First off, you need to set the right expectations—you won’t convert all of them. For the ones that are “convertible,” here are some tactics you can use: When looking for ideas for free products that will generate traffic, try a keyword research tool like Ahrefs’ Keywords Explorer. You can: To illustrate, our free website traffic checker tool generates an estimated 33.4K organic visits each month from ranking for keywords like “website traffic checker” or even “website traffic.” Content marketing is the process of creating and distributing content to attract and retain customers. If you add search engine optimization to the equation, you get a framework for creating content relevant to your business and the reader. You also get a built-in distribution engine that generates almost free traffic. SEO is one of the most sustainable marketing strategies because it generates passive traffic that accumulates over time and can generate traffic even years after. To put it differently, SEO results are continuous—and you don’t get that with all marketing strategies. Our blog is an example of such a strategy. It brings an estimated 628K organic visits each month, worth around $860K in ad money, through regular publishing of SEO content. SEO is generally worth it if at least one of these is true: In any case, the core of this strategy is to find relevant keywords with traffic potential. The right keywords can connect you with your target audience and create an opportunity to pitch your product. And if you’re not ranking for these keywords, your competitors will. The process of finding the right keywords for your website is called keyword research. Here’s a quick rundown: Other elements of the SEO process are building a sound technical foundation, creating optimized content, and building links. You can learn how to start with the entire process in our beginner’s guide to SEO. A user community can help your SaaS product in a number of ways: Building a user community is a sustainable strategy because it leverages existing customers and can help facilitate long-term engagement with the product. A famous example of a community with a price tag on it is Behance, acquired by Adobe for $150M. It generates over 10M search visits each month and allows the parent company to bring the design community very close to its product. In a nutshell: create a place where people can meet online, build a constant presence there, and animate the community (feature launches, discussions, polls, etc.). For example, at Ahrefs, we offer access to our exclusive community, Ahrefs Insider, with every subscription. All we needed to start it was a regular community feature on Facebook. Now it gathers a total of 17K registered users. Earned media is publicity gained organically from promotional efforts, like press coverage, social media mentions, and search engine rankings. Earned media is a sustainable form of marketing for these reasons: Here’s an example that checks all three boxes. A while ago, we published a data study showing that 90.63% of content gets no traffic from Google. This article was mentioned by multiple reputable websites, including NY Times, Forbes, and main SEO blogs. All of that coverage gave us free brand exposure and backlinks. Earned traffic covers a wide range of marketing tactics, so there’s no silver bullet here. Besides SEO content, which we already touched on, the tactics that are repeatable and will probably have the most impact over time are: When vetting which site to pitch your product, story, or quote to, you can use Ahrefs’ SEO Toolbar. For instance, say you’re looking for websites that review SaaS products like yours. Just search for your competitors’ reviews in Google and look at the metrics to see which sites can send you stronger links and considerable traffic. Multi-channel marketing is basically about interacting with your audience using different marketing channels: social media, search, podcasts, email, etc. Using multi-channel marketing will have the following advantages: The idea behind this strategy is that your audience is likely scattered across various websites and social media platforms. So even if one marketing channel works exceptionally well, you probably shouldn’t drop all other channels. Here are some ideas on how to find the best marketing channels for your business: Furthermore, using multiple marketing channels allows you to distribute content more effectively. You can: Here’s an example. Our thoughts on using ChatGPT for SEO were used in a YouTube video, on our blog, and on social media. While there may be some overlap between these audiences, they are definitely not identical. So by using the multi-channel approach, we were able to get more eyes on our content. Here are the nine best use cases of ChatGPT for SEO (and four suboptimal ones): A growth loop is a system where new user input creates an output that drives product demand. To illustrate, here’s how Notion used a product feature to activate and retain users (courtesy of Foundation). Growth loops are a stellar example of a sustainable marketing strategy because the whole model creates a loop. The more you grow, the more users you get, and so the more you grow. Furthermore, this strategy gives your marketing budget more “power” since each dollar invested in acquiring a user is also invested in the users generated via the loop. The simplest (but super effective) form of a growth loop is making your product outstanding. When your customers love the product and recommend it to others, you start growing on word of mouth—you acquire users you spent nothing to get. In some types of products, it’s possible to go beyond word of mouth and create a typical growth loop. It all depends on your product and your creativity. Here are a couple of levers you can pull: Revenue expansion is the additional revenue you get from your existing customers through upselling, cross-selling, and add-ons. It’s a strategy that has proven to work for decades in multiple industries. For instance, this is why when you order a regular pizza, you’re offered to get a bigger one, get a drink with it, or add some extra ingredients. And here’s an example from the SaaS world. When subscribing to HubSpot, you’re offered to upgrade by increasing the limit of contacts and also to purchase add-ons. According to a correlation study published by ProfitWell, SaaS subscription-based companies should aim for 20% to 30% expansion revenue in their overall revenue in order to succeed. You’ve probably heard that it’s better to retain a customer than to get a new one. That old business adage still holds true. According to this 2016 survey, SaaS companies spend an average of $1.16 to earn $1 on new annual contract value but only $0.27 on upsells and $0.20 on plan expansions. If you offer additional value to your satisfied customers, there’s a good chance those customers will be happy to buy more from you. Here are some ideas for creating value for revenue expansion: For example, when design tool UXPin developed a way to design with production-ready components, it decided to offer that as a premium version of the product with an almost 80% higher price tag than the UXPin Standard version. But how to know when and if your customers are willing to expand? Here are some signals: Growth marketing is the process of increasing a company’s revenue by applying an experiment-driven and integrated approach to all stages of attracting customers. To understand this type of marketing better, let’s compare it to traditional marketing and growth hacking (the close variant I don’t recommend). While the obvious solution for more sales is getting more visitors, this is not always the best one. If the product lacks competitive features and if there are obstacles on the path to purchase, money spent on getting more people through the door will always lead to low conversion and high churn. This is where growth marketing comes in. A great example of growth-oriented thinking is LinkedIn’s Reconnect Flow. It’s a nickname for the early onboarding process where new users were asked questions about their personal experiences and offered connections to existing LinkedIn users based on that. This simple tactic engaged both new and old users. Another interesting growth tactic LinkedIn used in the early days was encouraging users to import their email contacts (not a common thing back then). It was enough for 7% of new users to import their contacts to increase the overall number of invitations to 30%. The idea behind growth marketing is based on the scientific method: propose hypotheses and validate them through experimentation. In marketing, it’s known as the growth hacking cycle. The whole cycle starts by gathering data on the buyer’s journey. Next is generating ideas on how to improve and then testing those ideas (for example through A/B testing). It may seem like an obvious way to do marketing. But it’s not always that easy: Some tests may be hard to perform, and discipline is required. Also, it’s always faster (but not better) to go with your gut. An important part of the growth mindset is the ability to analytically break down big problems into smaller pieces. This approach allows for setting more achievable goals. For instance, a goal to increase sales is too vague because sales rely on many factors and not all of them are controllable. Instead, growth marketers may want to discover what “moves the needle.” Depending on the product, this may be encouraging the user to perform specific actions in the product or gearing pricing and communication toward a new audience. Sustainable growth doesn’t rely only on the strategies or tactics you choose. You need to give them time to work out the returns. You also need to experiment with them to see what works best for you. There’s a great talk by Rand Fishkin on the concept of the flywheel in marketing; how the first push is the hardest, but it builds momentum that makes things easier in the long run. Sustainable growth strategies are just like that. As you build more value into your product and your brand, you gain momentum that acts as a multiplier for every new thing you do. Got questions or comments? Ping me on Twitter or Mastodon.How it works
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ProsCons Less friction with getting people to use your product. Harder to manage expectations. People may expect to get more things for free. Bigger user base. More server load and possibly more queries to support. Works well with growth loops (more on that later). Offering something for free may reduce its perceived value. Direct marketing channel to signed-up users (content distribution and upselling). More feedback. How it works
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