Money in, money out. This has always been the central tenet of SaaS marketing, and always will be. However, the ways in which SaaS companies are valuing their services and offering value to their customers are changing fast. Here's everything you need to know...
Pricing committees are key to SaaS marketing success
Pricing needs to reflect value, simple.The harder thing to pin down - what is considered valuable?
Brands are finally waking up to the importance of pricing based on input from within the company, but also from consumers and prospects.
Nearly two in three SaaS companies changed their pricing in 2018, and companies that did make the change saw a substantial positive impact on revenue growth. Two in five reported a 25% or higher increase in Annual Reported Revenue (ARR) just as a result of the pricing change, while only 2% said the pricing change caused ARR to decrease.
This change was made by brands taking a long look as a collective at how they were pricing and modifying their offerings to suit the needs of the customer. The process requires a pricing committee, or Product/GTM committee, which should be cross-functional and include key people across departments (Product, Finance, Sales, Marketing, Customer Success).
The committee meets to review pricing KPIs, monitor the competitive landscape and make pricing decisions in quarterly intervals. Successful companies double down on what’s working and include the entire organisation. This simple yet effective approach to SaaS marketing creates a unified approach to pricing which is truly value-focused.
Why brand is more important than ever for SaaS marketing
Every SaaS product has an average of nine competitors, and each year the competition increases.
This heightened competition has in turn led to growing SaaS marketing budgets, which then drive up costs. Traditionally, many companies have simply have poured more and more money into paid channels to acquire as many leads as possible. However, we are starting to see the pendulum shift.
SaaS companies are at last recognising that securing the first spot in search results or creating a feature war with the competition won't necessarily win them business. This year, instead of investing purely in lead generation, companies should be investing in their brand and their customers to break through the noise and create a groundswell among your potential user base. Prospects want to know what corporations stand for, and your narrative and culture have never been more important.
To build brand awareness and create a community, you need to push for more authentic and value-led communication. For instance, investment in podcasts and events that bring prospects and customers together are increasingly important in SaaS marketing. There's also more emphasis on video across all channels including websites, emails and social to create more human connections.
Your customers should be central to any SaaS marketing you do. Remember that, and you should be well-equipped to supercharge your growth.
If you're looking for help with your SaaS marketing, look no further! Get in touch with Six & Flow today.