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Top SaaS Marketing Metrics and Strategies to Use in 2022

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Top SaaS Marketing Metrics and Strategies to Use in 2022

There are numerous SaaS marketing metrics to monitor. Even if we’re surrounded by resources and tracking software, it can be difficult to keep track of them all—even if you’re not doing the heavy lifting.

It is critical that we prioritize which SaaS marketing metrics are important to our businesses and, consequently, our teams. We don’t want to waste time on vanity metrics that won’t be very useful to us in the future.

We want to concentrate on improving our products, increasing acquisition and retention, and, ultimately, improving our bottom-line return on investment (ROI). Similarly, once you have a firm grasp of your target customer, competition, and selling point, you can begin developing your SaaS marketing strategy.

What exactly is SaaS?

SaaS or Software as a service represents subscription-only businesses. It is software viewed online through a subscription as opposed to being purchased and installed on a PC or laptop.

Shopify, HubSpot, and MailChimp are examples of well-known SaaS startups. While many people associate SaaS companies with selling directly to enterprises, consumer-facing SaaS companies include Netflix, Hulu, and Spotify.

SaaS Marketing Explained

At first glance, a SaaS marketing strategy appears to be no different than any other marketing strategy. You have a product, you promote and market it, and you hope to sell it to a large number of customers.

However, SaaS products are not the same as other products. For starters, you can’t physically hold a SaaS product in your hands; it lacks physical presence. As a result, selling SaaS products requires a different strategy. This is where SaaS tools and marketing come into play.

What do SaaS Marketing Metrics Mean?

SaaS marketing metrics are values that marketers use to evaluate the effectiveness of their strategies and campaigns. A metric can be used to

  • compare the past performance of your SaaS business to its current performance;
  • track your productivity against industry benchmarks; and
  • compare your effectiveness to your competitors.

What Are the Top Saas Marketing Metrics?

Customer Turnover

If gaining new customers is your ultimate goal, then keeping your current ones is equally important. The customer churn rate calculates how much business you’ve lost in a given period of time. This is among the most important metrics for tracking your company’s day-to-day viability and can help you better understand customer retention metrics over specific dates or periods.

When you’re tracking customer churn, go beyond just the customer count. Determine the personas of these churned customers, as well as the industries or anything else distinctive that can shed light on why they did not renew.

Revenue Loss

To assess the external impact that some customers may have over others, revenue churn should be measured alongside customer churn. If the subscription price varies depending on the number of seats or users purchased, the customer churn rate may be significantly different from the churn rate if some customers generate significantly more revenue than others.

Customer Lifetime Value (CLV)

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The average amount of money that your customers pay during their engagement with your company is referred to as customer lifetime value (CLV). CLV demonstrates how much your average customer is worth.

It can also demonstrate the value of your company to investors for those who are still in the startup phase. Because most SaaS businesses use subscription-based models, each renewal results in another year of recurring revenue, increasing the lifetime value per customer.

Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) identifies the exact cost of acquiring new customers as well as the value they bring to your company. When combined with CLV, this metric assists businesses in ensuring the viability of their business model.

New businesses should have customer acquisition as their top priority. Fully quantified CAC rates assist businesses in managing their growth and accurately estimating the value of their acquisition process.

Customer Engagement Score

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A customer engagement score can give you an idea of how engaged a customer is — how frequently they log in, what they use your software for, and other contributing metrics that indicate whether or not they will churn.

The customer engagement score scale for each company will differ depending on how a typical customer or user interacts with your software. Create your own customer engagement score by creating a list of inputs that predict a customer’s happiness and longevity — beginning with your happiest, longest-standing customers.

The Net Promoter Score (NPS)

Unlike the previous financial steps, the net promoter score directly indicates how much value your customers receive from your offering. NPS measurement enables you to quickly determine why customers are dissatisfied and use their feedback to improve your offering. In the early stages of a SaaS business, customer feedback can help determine whether you have product/market fit.

You can obtain NPS from your customers by asking them a simple question: “How likely are you to be recommended to a friend or colleague?” On a scale of one to ten, with ten being the most likely and one being the least likely, customers can rank their likelihood to suggest. You can contact detractors who have given you a score of 6 or less to find out why they are unhappy with your service.

Sign-Ups for Free Trials

The referral traffic rate, overall website, and organic traffic, time spent on your website, number of social media shares, and so on are all important metrics, but there is one that encompasses them all.

The number of sign-ups for a free trial demonstrates how many people are actually interested in purchasing from your company. They are the most likely to convert, and higher rates indicate greater marketing success.

We’ve discussed some most important metrics. Let’s move on to important SaaS marketing strategies.

Timeless Marketing Strategies for SaaS

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Make Use of Content Marketing

For every SaaS website, content marketing is a true lead generation strategy. Publishing high-quality content increases traffic to your website. Always choose the topics that are relevant to your target audience’s interests.

If you want your content to rank, generate backlinks and create stunning content. In order to determine how many backlinks you should have, perform a backlink analysis of ranking content. Once your content becomes relevant and engaging, your company will gain a reputation as an authority in the SaaS industry.

Spend Time Improving Your Website’s SEO

Nothing works as well as a comprehensive SEO strategy for increasing site traffic. Search engine optimization (SEO) works in tandem with content marketing analytics. The basic concept is straightforward.

A site must be tailored and tweaked so that it ranks as high as possible in search engine results pages. Only then will your website receive more traffic. Take a look at a good example of SEO and content marketing in general on the painter salary blog.

Invest in Paid Search (PPC)

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PPC advertising is another Digital Marketing area worth investigating. As a SaaS marketing strategy, it should not be viewed as a replacement for content marketing and SEO. What it can be, however, is a fantastic complement to those two processes. Especially if you want to get some quick traffic wins.

If you do decide to invest in PPC ads, you want to get the most bang for your buck while keeping customer acquisition costs low. Your marketing team must create engaging and appealing advertisements that convey the benefits of your service. Repeated testing is the most effective way to improve the conversion rate of your ads. Create numerous ad copy variations, conduct extensive keyword research, and track metrics.

Implement Intelligent Referral Marketing

The digital equivalent of word-of-mouth advertising is referral marketing. It entails asking current customers to recommend your service to people they know, either privately via email or publicly via platforms such as LinkedIn.

Don’t forget when sending these types of messages to implement the untapped channel of email signatures. We believe email signatures are an untapped channel many marketing and sales teams need right now, but most don’t take advantage of it. This is a great strategy to develop. Here is an article about it. Referral marketing is an effective SaaS marketing strategy because it increases the likelihood of attracting qualified leads.

Make Available Free Trials and/or a Freemium Model

It’s difficult to find a SaaS company that doesn’t provide a free trial. This is because free trials are extremely effective in selling SaaS. A free trial can help users understand how your software works, from customer relationship management CRMs (Customer Relationship Management) to voice over internet protocol VoIP (Voice over IP).

A freemium model gives the customer an unlimited free version, but they must be paying subscribers to access many of the features. This way, you’re giving customers a taste of the benefits they’ll receive if they sign up properly.

Make Use of Outbound Marketing

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Outbound marketing is when a company proactively contacts potential customers in order to pique their interest in a product or service that they are selling. Outbound marketing involves the company initiating the conversation and pushing a message to their customers rather than waiting for them to come to them. Outbound marketing examples include:

  • Television commercials
  • Radio commercials
  • Telephone cold calling
  • Emailing strangers
  • Publications in the press
  • Trade fairs
  • Series of seminars
  • Spam emails
  • Media buys

Make It Simple to Sign Up

For anyone who runs a SaaS business, creating the signup page is usually the most difficult obstacle to overcome. If you get it right, you’ll be on your way to growing your business at a much faster rate. A long and complicated signup form is not acceptable. Your onboarding process should be short and efficient. Don’t ask for information that’s not critical.

Utilise Clear CTAs

Always tend to make moving around your website as frictionless and efficient as possible. You want the process of becoming a customer to be as straightforward as possible. This can be helped by incorporating clear calls to action (CTAs) into your content marketing strategy.

Get a VSA

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A virtual sales assistant handles your sales and sales support tasks, freeing up your time to focus on ‘core’ functions that directly affect your revenue. Get yourself a virtual sales assistant to help you with sales while you focus on growing your business. Your sales VA will relieve you and your sales department of administrative duties.

To Summarize

So you now have many actionable steps and a wealth of additional information to assist you in reaching your SaaS marketing objectives. Implement all of these suggestions or just the ones that stand out to you. This will be your SaaS marketing strategy and it should reflect your brand and your business.

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

The very first commercial advertisement was shown on TV in 1941. It was only 10 seconds long and had an audience of 4,000 people. However, it became a strong trigger for rapid advertising development. The second half of the 20th century is known as the golden age of advertising until the Internet came to the forefront and entirely transformed the advertising landscape. The first commercial banner appeared in the mid-90s, then it was followed by pop-ups, pay-by-placement and paid-pay-click ads. Companies also started advertising their brands and adding their business logo designs, which contributes to consumer trust and trustworthiness.

The rise of social media in the mid-2000s opened a new dimension for advertising content to be integrated. The marketers were forced to make the ads less intrusive and more organic to attract younger users. This is how native advertising was born. This approach remains a perfect medium for goods and services promotion. Let’s see why and how native ads can become a win-win strategy for your business.

What is native advertising?

When it comes to digital marketing, every marketer talks about native advertising. What is the difference between traditional and native ones? You will not miss basic ads as they are typically promotional and gimmicky, while native advertising naturally blends into the content. The primary purpose of native ads is to create content that resonates with audience expectations and encourages users to perceive it seamlessly and harmoniously.

Simply put, native advertising is a paid media ad that organically aligns with the visual and operational features of the media format in which it appears. The concept is quite straightforward: while people just look through banner ads, they genuinely engage with native ads and read them. You may find a lot of native ads on Facebook, Twitter and Instagram – they appear in the form of “in-feed” posts that engage users in search for more stories, opinions, goods and services. This unobtrusive approach turns native ads into a powerful booster for any brand.

How does native advertising benefit your business?

An average Internet user comes across around 10,000 ads a day. But even physically, it is impossible to perceive this amount of information in 24 hours. So, most of them use adblockers, nullifying all efforts of markers. Native ads successfully overcome this digital challenge thanks to their authenticity. And this is not the only advantage of native advertising. How else does your business benefit? Here are just a few major benefits that prove the value of native ads:

Better brand awareness. Native ads contribute to the brand’s visibility. They seamlessly blend into educational, emotional, and visual types of content that can easily become viral. While promotional content typically receives limited shares, users readily share valuable or entertaining content. Consequently, while you incur expenses only for the display of native ads, your audience may go the extra mile by sharing your content and organically promoting your brand or SaaS product at no additional cost.

Increased click-through rates. Native ads can generate a thrilling click-through rate (CTR) primarily because they are meticulously content-adaptable. Thus, native ads become an integral part of the user’s journey without disrupting their browsing experience. Regardless of whether your native advertising campaign is designed to build an audience or drive specific actions, compelling content will always entice users to click through.

Cost-efficient campaign performance. Native advertising proves to be cheaper compared to a traditional ad format. It mainly stems from a higher CTR. Thanks to precise targeting and less customer resistance, native ads allow to bring down cost-per-click.

Native ads are continuously evolving, enabling marketers to experiment with different formats and use them for successful multi-channel campaigns and global reach.

Types of native advertising

Any content can become native advertising as there are no strict format restrictions. For example, it can be an article rating the best fitness applications, an equipment review, or a post by an influencer on a microblog. The same refers to the channels – native ads can be placed on regular websites and social media feeds. Still, some forms tend to be most frequently used.

  • In-feed ads. This type of ad appears within the content feed. You have definitely seen such posts on Facebook and Instagram or such videos on TikTok. They look like regular content but are tagged with an advertising label. The user sees these native ads when scrolling the feed on social media platforms.
  • Paid search ads. These are native ads that are displayed on the top and bottom of the search engine results page. They always match user’s queries and aim to capture their attention at the moment of a particular search and generate leads and conversions. This type of ad is effective for big search platforms with substantial traffic.
  • Recommendation widgets. These come in the form of either texts or images and can be found at the end of the page or on a website’s sidebar. Widgets offer related or intriguing content from either the same publisher or similar sources. This type of native ads is great for retargeting campaigns.
  • Sponsored content. This is one of the most popular types of native advertising. Within this format, an advertiser sponsors the creation of an article or content that aligns with the interests and values of the platform’s audience. They can be marked as “sponsored” or “recommended” to help users differentiate them from organic content.
  • Influencer Advertising. In this case, advertisers partner with popular bloggers or celebrities to gain the attention and trust of the audience. Influencers integrate a product, service, or event into their content or create custom content that matches their style and topic.

Each of these formats can bring stunning results if your native ads are relevant and provide value to users. Use a creative automation platform like Creatopy to design effective ads for your business.

How to create a workable native ad?

Consider these 5 steps for creating a successful native advertising campaign:

  • Define your target audienceUsers will always ignore all ads that are not relevant to them. Unwanted ads are frustrating and can even harm your brand. If you run a store for pets, make sure your ads show content that will be interesting for pet owners. Otherwise, the whole campaign will be undermined. Regular market research and data analysis will help you refine your audience and its demographics.
  • Set your goals. Each advertising campaign should have a clear-cut objective. Without well-defined goals, it is a waste of money. It is a must to know what you want to achieve – introduce your brand, boost sales or increase your audience.
  • Select the proper channels. Now, you need to determine how you will reach out to your customers. Consider displaying ads on social media platforms, targeting search engine result pages (SERPs), distributing paid articles, or utilizing in-ad units on different websites. You may even be able to get creative and use email or SMS in a less salesy and more “native”-feeling way—you can find samples of texts online to help give you ideas. Exploring demand side platforms (DSP) can also bring good results.
  • Offer compelling content. Do not underestimate the quality of the content for your native ads. Besides being expertly written, it must ideally match the style and language of the chosen channel,whether you’re promoting professional headshots, pet products, or anything else. The main distinctive feature of native advertising is that it should fit naturally within the natural content.
  • Track your campaign. After the launch of native ads, it is crucial to monitor the progress, evaluating the costs spent and results. Use tools that help you gain insights beyond standard KPIs like CTR and CPC. You should get engagement metrics, customer data, campaign data, and third-party activity data for further campaign management.

Key takeaway

Summing up the above, it is time to embrace native advertising if you haven’t done it yet. Native ads seamlessly blend with organic content across various platforms, yielding superior engagement and conversion rates compared to traditional display ads. Marketers are allocating higher budgets to native ads because this format proves to be more and more effective – content that adds value can successfully deal with ad fatigue. Native advertising is experiencing a surge in popularity, and it is to reach its peak. So, do not miss a chance to grow your business with the power of native ads.or you can do digital marketing course from Digital Vidya.

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

A week or so ago, the extraordinary drama happening at OpenAI filled news feeds.

No need to get into all the saga’s details, as every publication seems to have covered it. We’re just waiting for someone to put together a video montage scored to the Game of Thrones music.

But as Sam Altman takes back the reigns of the company he helped to found, the existing board begins to disintegrate before your very eyes, and everyone agrees something spooked everybody, a question arises: Should you care?

Does OpenAI’s drama have any demonstrable implications for marketers integrating generative AI into their marketing strategies?

Watch CMI’s chief strategy advisor Robert Rose explain (and give a shoutout to Sutton’s pants rage on The Real Housewives of Beverly Hills), or keep reading his thoughts:

For those who spent last week figuring out what to put on your holiday table and missed every AI headline, here’s a brief version of what happened. OpenAI – the huge startup and creator of ChatGPT – went through dramatic events. Its board fired the mercurial CEO Sam Altman. Then, the 38-year-old entrepreneur accepted a job at Microsoft but returned to OpenAI a day later.

We won’t give a hot take on what it means for the startup world, board governance, or the tension between AI safety and Silicon Valley capitalism. Rather, we see some interesting things for marketers to put into perspective about how AI should fit into your overall content and marketing plans in the new year.

Robert highlights two takeaways from the OpenAI debacle – a drama that has yet to reach its final chapter: 1. The right structure and governance matters, and 2. Big platforms don’t become antifragile just because they’re big.

Let’s have Robert explain.

The right structure and governance matters

OpenAI’s structure may be key to the drama. OpenAI has a bizarre corporate governance framework. The board of directors controls a nonprofit called OpenAI. That nonprofit created a capped for-profit subsidiary – OpenAI GP LLC. The majority owner of that for-profit is OpenAI Global LLC, another for-profit company. The nonprofit works for the benefit of the world with a for-profit arm.

That seems like an earnest approach, given AI tech’s big and disruptive power. But it provides so many weird governance issues, including that the nonprofit board, which controls everything, has no duty to maximize profit. What could go wrong?

That’s why marketers should know more about the organizations behind the generative AI tools they use or are considering.

First, know your providers of generative AI software and services are all exploring the topics of governance and safety. Microsoft, Google, Anthropic, and others won’t have their internal debates erupt in public fireworks. Still, governance and management of safety over profits remains a big topic for them. You should be aware of how they approach those topics as you license solutions from them.

Second, recognize the productive use of generative AI is a content strategy and governance challenge, not a technology challenge. If you don’t solve the governance and cross-functional uses of the generative AI platforms you buy, you will run into big problems with its cross-functional, cross-siloed use. 

Big platforms do not become antifragile just because they’re big

Nicholas Taleb wrote a wonderful book, Antifragile: Things That Gain From Disorder. It explores how an antifragile structure doesn’t just withstand a shock; it actually improves because of a disruption or shock. It doesn’t just survive a big disruptive event; it gets stronger because of it.

It’s hard to imagine a company the size and scale of OpenAI could self-correct or even disappear tomorrow. But it can and does happen. And unfortunately, too many businesses build their strategies on that rented land.

In OpenAI’s recent case, the for-profit software won the day. But make no bones about that victory; the event wasn’t good for the company. If it bounces back, it won’t be stronger because of the debacle.

With that win on the for-profit side, hundreds, if not thousands, of generative AI startups breathed an audible sigh of relief. But a few moments later, they screamed “pivot” (in their best imitation of Ross from Friends instructing Chandler and Rachel to move a couch.)

They now realize the fragility of their software because it relies on OpenAI’s existence or willingness to provide the software. Imagine what could have happened if the OpenAI board had won their fight and, in the name of safety, simply killed any paid access to the API or the ability to build business models on top of it.

The last two weeks have done nothing to clear the already muddy waters encountered by companies and their plans to integrate generative AI solutions. Going forward, though, think about the issues when acquiring new generative AI software. Ask about how the vendor’s infrastructure is housed and identify the risks involved. And, if OpenAI expands its enterprise capabilities, consider the implications. What extra features will the off-the-shelf solutions provide? Do you need them? Will OpenAI become the Microsoft Office of your AI infrastructure?

Why you should care

With the voluminous media coverage of Open AI’s drama, you likely will see pushback on generative AI. In my social feeds, many marketers say they’re tired of the corporate soap opera that is irrelevant to their work.

They are half right. What Sam said and how Ilya responded, heart emojis, and how much the Twitch guy got for three days of work are fodder for the Netflix series sure to emerge. (Robert’s money is on Michael Cera starring.)

They’re wrong about its relevance to marketing. They must be experiencing attentional bias – paying more attention to some elements of the big event and ignoring others. OpenAI’s struggle is entertaining, no doubt. You’re glued to the drama. But understanding what happened with the events directly relates to your ability to manage similar ones successfully. That’s the part you need to get right.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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The Complete Guide to Becoming an Authentic Thought Leader

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The Complete Guide to Becoming an Authentic Thought Leader

Introduce your processes: If you’ve streamlined a particular process, share it. It could be the solution someone else is looking for.

Jump on trends and news: If there’s a hot topic or emerging trend, offer your unique perspective.

Share industry insights: Attended a webinar or podcast that offered valuable insights. Summarize the key takeaways and how they can be applied.

Share your successes: Write about strategies that have worked exceptionally well for you. Your audience will appreciate the proven advice. For example, I shared the process I used to help a former client rank for a keyword with over 2.2 million monthly searches.

Question outdated strategies: If you see a strategy that’s losing steam, suggest alternatives based on your experience and data.

5. Establish communication channels (How)

Once you know who your audience is and what they want to hear, the next step is figuring out how to reach them. Here’s how:

Choose the right platforms: You don’t need to have a presence on every social media platform. Pick two platforms where your audience hangs out and create content for that platform. For example, I’m active on LinkedIn and X because my target audience (SEOs, B2B SaaS, and marketers) is active on these platforms.

Repurpose content: Don’t limit yourself to just one type of content. Consider repurposing your content on Quora, Reddit, or even in webinars and podcasts. This increases your reach and reinforces your message.

Follow Your audience: Go where your audience goes. If they’re active on X, that’s where you should be posting. If they frequent industry webinars, consider becoming a guest on these webinars.

Daily vs. In-depth content: Balance is key. Use social media for daily tips and insights, and reserve your blog for more comprehensive guides and articles.

Network with influencers: Your audience is likely following other experts in the field. Engaging with these influencers puts your content in front of a like-minded audience. I try to spend 30 minutes to an hour daily engaging with content on X and LinkedIn. This is the best way to build a relationship so you’re not a complete stranger when you DM privately.

6. Think of thought leadership as part of your content marketing efforts

As with other content efforts, thought leadership doesn’t exist in a vacuum. It thrives when woven into a cohesive content marketing strategy. By aligning individual authority with your brand, you amplify the credibility of both.

Think of it as top-of-the-funnel content to:

  • Build awareness about your brand

  • Highlight the problems you solve

  • Demonstrate expertise by platforming experts within the company who deliver solutions

Consider the user journey. An individual enters at the top through a social media post, podcast, or blog post. Intrigued, they want to learn more about you and either search your name on Google or social media. If they like what they see, they might visit your website, and if the information fits their needs, they move from passive readers to active prospects in your sales pipeline.

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