When developing a new SaaS business, it is just as important to create a Go To Market strategy (GTM) while in the early stages of the developing process as it is to develop a good service. Many failures in the SaaS world are due to a lack of forethought in the marketing process.
Outlined below are some essential points to consider when developing your SaaS GTM Strategy.
Decide Your Key Target Market
The most important decision to make upfront is to define your target markets. The key is to keep it simple. While this may seem counterintuitive, many SaaS brands make the mistake of marketing across various sized markets, thus spreading themselves too thin.
There are three basic levels of target markets:
- Small business
- Mid-level businesses
Once you have decided the primary size market you will be trying to reach, you will further target a specific niche. The reason for specifying is to help you tailor your marketing and sales efforts directly to the customer. Trying to please everyone is too overwhelming for a start-up and often leads to failed efforts.
In the beginning, focusing on a specific group and building customer loyalty is your number one goal. Once this first target is reached and your initial MRR goal is met, it may be time to expand your strategy and reach out to other niches and markets.
Develop Your Contact Strategy
This stage is where customer acquisition costs come into play, and having a skilled marketing team can make or break your strategy.
There are three basic types of contact:
- Low touch
- Medium touch
- High touch
In the sales realm, touch essentially defines how often your customers will come in contact with a sales rep. Therefore it makes sense that the higher the touchpoint, the more work is required of your sales team and thus higher the personnel cost.
Though the level of target market you decide upon and the types of contact used can be mixed, they typically correspond for the most part. (For example, low touch for small business, high touch for enterprises).
The reason for this is that at the small business level, your marketing strategy can be more tailored towards individuals and independence. In contrast, at the enterprise level, the sales model will be focused more on pleasing higher-up decision-makers, such as a board, and maintaining relationships.
Establish Your Offerings
It is essential to establish and highlight what features your SaaS has to offer. The most common way of doing this is by giving users the option to try your product at low or no cost.
In the SaaS business world, the freemium model reigns supreme in GTM strategy. This model offers a free trial period that allows potential customers to immediately use your product to ensure that it is the right fit. There are two types of free trial offerings: a limited time full use and upgrade plans.
With the limited time, full use model, your SaaS product is offered for first-time users to begin using your full product right away. Then they are offered the chance to purchase a membership at a later date to continue.
The best strategy is to keep this offer period short. Giving the user enough time to use your product and learn the primary uses but not long enough to lose interest or seek your competition is key. Month-long 30-day trials are common, with 14-day trials being the recommended choice.
An upgrade plan offering is a great option when tailoring towards small businesses because they typically need to make more cost-effective decisions. Offering small businesses the chance to be valued customers at a basic level at no cost helps build loyalty and customer retention before they buy-in.
Offering the upgrade plan allows you to build a relationship as a partner who helped them from the beginning. The key here is offering a basic plan at no cost, with essential features included in upgrade offers at scaling price points.
Let Your Product Work for You
By establishing your touch strategy and offering a trial of your service from the beginning, your product can work for you as a lead generator and sales representative. If you strategize from the start and offer a quality product, the cost remains low.
Allowing individuals at small or mid-level size businesses to self-manage and explore your service on their own minimizes the need for person to person contact. This model saves you time and money, leaving your personnel with time to focus on making your service better and developing new features rather than pitching a sale.
Streamline Marketing and Sales
For any level target market, it is wise to plan a streamlined marketing and sales strategy. Having your marketing system streamlined allows it to work for your representatives when contacting customers and leads.
This is especially true, though, when developing a GTM strategy at the Enterprise level. Your strategy in this realm is not focused on a particular tool or product but on tailoring your service very specifically for each client. Increased customization is the key. When your marketing and sales efforts work together, they ensure that qualified leads are delivered to your sales representatives after each sales cycle.
In the 21st century, there is a vast and wide variety of options for marketing your SaaS business. A few options are:
- Word of Mouth
- Television/Radio Advertisement
- Social Media
- Print Advertisement
- Cold Call/Email
Each of these options has its benefits. Every company will have it’s better option and reasons for the choice in marketing and advertising. But the most important aspects when deciding on a marketing medium are consistency and focus. Trying to diversify too much can cause ineffectiveness in all areas instead of establishing yourself as an authority in one area of the advertising market.
The most effective start-up Go to Market Strategies are simple.
- Strategize Early
- Focus on One Specific Target
- Utilize One Contact Method
- Offer One Featured Service
- Manage One Marketing Medium
The goal for any SaaS business is high growth. Still, for a starting GTM strategy, the goal is to develop a strategy and brand established to grow. The critical focus starts with small roots and leaves room to build and expand. Ensuring that your company has a bright future is the ultimate goal, and that begins with focusing on being the best at what you do now and building a loyal customer base.
At RevTek Capital, we desire to see your business thrive just as you do. We strive to help you strategize and secure funding to reach each of your intended goals. Contact us at (480) 332-0399 to schedule a consultation today for your SaaS business.