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The growth and corresponding ROI of any business, including SaaS, is largely determined by the processes of acquiring leads and, ultimately, users. That is why users are considered the lifeblood of every SaaS company. No matter how effective cloud services are, the biggest challenge and limiting factor in growing SaaS companies has arguably always been demand generation and acquisitions. And this is just the basic differentiator between success and failure in SaaS businesses.
While products play a significant role in user acquisition, it is marketing and distribution strategies that make the biggest impact after all. That is why companies with comparatively poor cloud services and strong distribution channels can eventually outdo themselves with better services combined with weak distribution channels.
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To help you through this process, here is a list of the best distribution channels you might want to consider as you promote your product:
referral program
Simply put, referral programs leverage third parties, who do the hard work and bring you some of the leads. Currently, 70% of companies with B2B referral programs report higher conversion rates than their counterparts.
Referral programs are particularly effective in small and medium-sized businesses, where SaaS companies pay other website or social media owners to do the work, thereby leading to sign-ups or boosting website exposure. Since potential customers are mostly receptive, a lot of them will sign up and gradually become frequent SaaS users.
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Search Engine Optimization
There is a reason why Google, a web space crammed with millions of websites, remains the most visited website, with 60,800 searches per second . Through it, web users will be able to navigate through entire websites, straight to sites aligned with their interests. That is why it is advisable to get the most out of search engines, through methodical optimization strategies that capitalize on the largest percentage of traffic.
For example, a company on page #1 of search results will attract a fraction of the 91.5% of Google traffic that typically doesn't move on to subsequent pages. Compare that to those hiding behind the second, third, fourth, or fifth page in search results. And this is precisely why they say the best place to hide a dead body is on page #2 of Google's search results .
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Content and social media marketing
The Internet is powered by content . Unfortunately, it is the least understood indonesia whatsapp number data distribution channel, where most small businesses stay away. Only large SaaS businesses have invested significantly in blogs, videos, eBooks, social media engagement, and ballot measures, because they understand the current trend of buyers. Buyers have a constant need for new content, not only for entertainment, but also for educational purposes. Understandably, everyone wants to know about a product before signing up for it.
Compared to other distribution channels, content marketing, especially within social media platforms, is considerably cheaper, as the real costs are the salaries of content creators, influencers and strategists. In addition, it can be said that it is the only channel with long-term capitalization and returns.
Advertising
While there is an ongoing debate about the effectiveness of sponsored ads, one thing is clear – they create awareness about the product, which is the first step towards effective SaaS distribution. There are many advertising possibilities these days, such as social media ads and AdWords, which have been exploited to the fullest.
Since costs generally determine the number of potential customers the ad will be exposed to, the ultimate results of the campaign will be largely influenced by the budget. In some cases, however, especially when advertisers inadvertently write simple ads that connect perfectly with the audience, the number of converted leads could exceed those generated by an expensive ad. Therefore, strategy and content are more important than budget .
Word of mouth
Finally, the oldest trick in the book – word of mouth. In the United States alone, according to the Word of Mouth Marketing Association, there are approximately 2.4 billion engagements every day on brands, products and services that people have enjoyed. In addition, 77% of consumers are likely to trust a new product or service after hearing good things about it from friends or influencers. There is nothing better and more satisfying than a recommendation from one satisfied customer to another. This is a clear indication that you are doing something right.
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The only drawback here is the fact that, unlike other distribution channels, you cannot control it directly . The only way to build a good understanding and attract referrals is by making sure that your SaaS is unique, and that you are a few steps ahead of your competitors.
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One of the biggest challenges you will face in distribution is the fact that potential customers often express concerns about business continuity, in case SaaS companies go out of business or go bankrupt. Therefore, to show them that you have their best interests in mind, you should probably consider leveraging SaaS escrow as collateral. Through this, your customers will gain full access to the underlying source code of the software, in case operations or software support cease. As a result, they will not only be able to continue using your software, but will also be able to carry out careful migrations to other platforms without incurring any expense.
Since this eliminates the risk factor, the Software Depot would be a great addition to your overall marketing and distribution strategy. In fact, since other strategies are widely used in this area, this could be a different approach to put yourself a considerable distance ahead of competitors.
While this list summarizes the most effective distribution channels, not all of them are guaranteed to continue uninterrupted in your SaaS business.
