This week’s roundup includes great tips improving your SaaS marketing strategy, the power and importance of tracking Gross Margin, the best traffic sources for SaaS lead generation and more! Let’s get started…
First up is digital marketing guru Mike Sonders, sharing his study of traffic to the 50 biggest public SaaS companies in the world. Mike reached out last week asking me to have a look at this piece, and I have to say I was highly impressed with his work on this project. Calling this presentation “thorough” would be an understatement. “Brilliant” and “enlightening” may be understatements as well. Put those words together though, and I’d say you have an accurate description of this article. The raw information here is powerful enough, but the extensive collection of charts, graphs and survey findings make this a highly worthwhile read. Simply fantastic.
For the most part, you can’t expect to run a couple of small tests in a new channel and expect to develop any meaningful insights. It takes time to build a scalable customer acquisition machine.– Mike Sonders
As is clearly stated in this article’s opening line, there are many aspects to growing a successful SaaS business. Internal organization, role responsibility and competent operation of the functional areas like finance and support are all pretty important. Before an investor even considers pouring money into your SaaS business, they’re going to take time to make sure they are happy with how the business is structured and operates. There are a lot of things to focus on, and in the early stages of your company – it can be hard for one person to get everything just right. With this in mind, Xander Marketing‘s Alex Cohen set out to help new SaaS businesses determine the most important aspects of their marketing strategy and to build a powerful SaaS marketing strategy checklist. With a powerful SaaS product and an even better marketing strategy – SaaS investors are sure to come running.
We really can’t stress this enough. Investors need to understand that you are good around money matters. Be sharp on the numbers you’ll hit, and how you’ll hit them.– Alex Cohen
What can an experienced SaaS copywriter do for your business? According to Matthew Brennan, they can do quite a lot. Over the course of this quick 6-minute read, Brennan breaks down the numerous benefits that hiring a SaaS copywriter can have on your SEO presence, the strength of your lead magnets, repurposed content and even original blog content as well. If you’re a little skeptical about the value that SaaS copywriters bring to the table, you should give this article a quick read. Brennan makes a compelling argument, to say the least.
The days when a quality product was enough to lift your business into the limelight are gone. It’s no longer enough. You need a compelling message and a well thought out plan to bring your product to the attention of your target audience. A SaaS copywriter can help get you there.– Matthew Brennan
SaaS venture capitalist Piotr Sliwa took to Medium last week to share some thoughts on gross margin (GM) and how it relates to the SaaS platform. While the vast majority of SaaS companies focus heavily on revenue growth, Sliwa points out that investors will compare multiple of your metrics with the GM (not revenue) you are generating to understand whether you can scale or not. With this in mind, overlooking GM is a big mistake. Especially for early-stage SaaS companies seeking possible investors. But what GM should you aim for? Sliwa breaks it down quite clearly.
In general, it is OK to have a lower gross margin in the early phase of your business, however after you have hit a certain ARR, you should start optimizing the onboarding and support processes to work at scale– Piotr Sliwa
Five year’s after his original “Five ways to build a $100 million business” article, Point Nine Capital‘s Christoph Janz published a modernized follow-up to this piece. Five years can change a lot of things in any industry, but as readers on our blog probably know – in the software industry, five years is a lifetime. So what’s changed? What’s stayed the same? If you’ve got two minutes, Janz has the answers.
One thing I’ve learned over time is that just because there are five ways to build a $100 million business, it doesn’t mean that those five ways aren’t equally promising. To quote the pigs in George Orwell’s “Animal Farm” (one of the very few books that we had to read at school that I liked): All animals are equal, but some animals are more equal than others.– Christoph Janz
The great folks over at Stretch VP published a great article on the importance of the discovery stage as it relates to SaaS sales. We’ll admit that we were a little biased when we noticed that they had included one of our own articles as source material for this piece, but the fact remains that this collective work has a very strong point to make. Want to close more deals? Study, practice and master the Discovery stage in the sale process. It matters more than you may think!
In SaaS especially, you need to modify your discovery conversation to align with what stage each buyer is in the waterfall. She [Anna Talerico] calls this being “Funnel Aware”. By being Funnel Aware, you can better adapt and move a prospect from top of the waterfall to the rapids where they are ready to buy.– Stretch VP
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!