SaaS is one of the most valuable niches that a tech start-up can specialize in. According to the global consulting giants McKinsey, the SaaS niche was valued at $3 trillion in 2022 and is projected to grow several times over by the end of the decade.
For businesses specializing in SaaS, the size of the field provides challenges as well as opportunities. While there is plenty of revenue and a still-growing market segment to take advantage of, there is also a lot of competition with other hungry start-ups and massive billion-dollar companies.
To succeed, your SaaS startup needs to invest time and resources into a reliable market strategy. Here are some tactics that are proven to work in the SaaS niche.
Think Globally, Plan Locally
The SaaS industry is a global powerhouse. While most of the biggest companies are based in the United States near Silicon Valley, there are tech hubs from Bangalore, India, to Berlin, Germany that are creating exciting new start-ups. Your potential clients could also be based anywhere in the world.
That’s why it’s important to incorporate global strategies in your marketing plan. “Think of us as your dedicated marketing team spread across six time zones,” share the experts at Savage Global Marketing, who have worked with SaaS startups in the past. They recommend working with marketing professionals who have global experience to give you insights into all the major IT markets rather than shutting yourself into a national niche.
While you should think globally when planning your marketing strategy, individual campaigns will have to be localized. That’s another situation where hiring a marketing firm with global experience can help. Companies that have created successful campaigns around the world know how to localize marketing materials to different IT markets.
Choose Partnerships Carefully
Like any business, your SaaS startup should have public-facing materials such as a well-designed website, social media marketing, and PPC ads on social media. However, your marketing traction will grow more efficiently through personalized channels rather than those targeted at a general audience.
The main audience for SaaS is usually other businesses, although consumers purchase SaaS solutions as well. That means that the audience you are trying to target is narrower to begin with. Rather than casting a wide net and targeting the general public, your paying clientele is going to come from businesses and corporations.
Strategic partnerships are important to growing market traction when your primary clientele comes from businesses. Build relationships with others in the industry who can recommend you to potential clients. Turn your existing clients into potential partners by funneling them into a referral or testimonial program, which will help you expand into their network.
Curating your partnerships is also helpful when creating a plan for your sales team. Rather than reaching out to anyone whose contact information you can find and cold-calling, approach sales as an opportunity to build partnerships. Start with people with whom your company has some kind of connection and go on from there.
Build Anticipation
One of the big advantages that start-ups have over established businesses in the SaaS niche is their potential. Big companies are like dinosaurs—they take up a large segment of the market, but are slow to change. Start-ups are small but dynamic and hungry for adjustments. People become interested in start-ups because these companies have the potential to become the next big thing, solving problems in the SaaS sphere that bigger enterprises haven’t addressed.
Your marketing materials should capitalize on that sense of excitement around your company’s development. Emphasize your future-oriented mindset and potential for growth. This can also help you cover up some rough patches that your start-up hasn’t developed yet.
You can also adapt other marketing tactics that get potential customers and investors excited about your company’s development. Have roll-out campaigns for new developments where you tease an update and build up the anticipation for several weeks. Offer exclusive launch access to certain people. That way, you create hype around your start-up and increase your market traction.
Building Market Anticipation for Your SaaS Startup
Breaking into the crowded SaaS field means that you have to stand out compared to other start-ups and established businesses in the niche. While a good product is important, you also need a good marketing strategy to make sure customers know you exist.
Your strategy should be tailored towards your strengths as a startup and targeting the potential clients who are most likely to purchase from your business or invest in your startup. A marketing company with global reach and experience working with startups can help you develop and execute a successful startup.
