Software as a Service, abbreviated as SaaS, is very popular in business marketing right now.
According to a study, the average number of SaaS applications used by various organizations has doubled from 8 to 16 since 2015. Not only that, statistics also show that the global workload of SaaS organizations reached $206 million in 2018. It is expected to grow and reach 380 million. million dollars by 2022.
This fully shows that SaaS marketing is on the rise in 2022. Not only in 2022, but it has been on an upward trend especially in the past few years. However, SaaS product marketing has many new trends that are being embraced by major companies and marketers all over the world.
In this article, we are going to discuss the top 10 SaaS product marketing trends that will be very useful for every organization trying to implement and use SaaS marketing capabilities.
Before we move on to the top trends in SaaS product marketing that can come in handy this year, let’s discuss some other things that can be essential knowledge for all marketers and companies associated with SaaS.
What is SaaS and how does it work?
SaaS or “Software as a Service” is essentially a software license and delivery model. It includes licensed software on a subscription basis and is centrally hosted. SaaS is also referred to as “Software on Demand”. Microsoft previously referred to SaaS as “Software in addition to Services”.
The model includes a software delivery method that allows access to data from any device with an active Internet connection and a web browser. It is a web-based model, and the software vendors that distribute such models host and maintain servers and databases. They also develop the application code used in the SaaS model.
The biggest advantage of SaaS is that it removes the hassle of software installation and maintenance. All you have to do is access the software with the help of an internet connection and web browser. This removes the complexities and complexities of software and hardware management.
For example, let’s take the example of Netflix. The netflix is a very popular OTT platform that has millions of subscribers all over the world. Netflix is a SaaS-based company that offers software for watching licensed videos on its platform. Netflix uses a subscription-based model in which the user chooses a particular subscription plan and pays a fixed amount of money on a monthly or yearly basis and can watch any video on the platform as long as their subscription is valid.
The best part about SaaS models is the fact that SaaS customers do not have to purchase or maintain any hardware or software. It provides easy access to the applications and all you need to access the application is a working internet connection.
The main characteristics of SaaS – the reason for its high popularity
According to statistics, 73% of organizations report that almost all of their applications will be SaaS-based by 2022. Besides, 93% of CIOs have either adopted, adopted or made plans to adopt SaaS cloud for their organizations.
Now there must be a few reasons why SaaS is so popular nowadays. The reasons are the few basic characteristics and benefits that the model offers to its users. We can compare the SaaS model to the work of the bank and get a more comprehensive understanding in simple terms.
The platform protects the privacy of every customer while providing highly secure and reliable services, at scale. All bank customers use the same financial systems and technology. However, you do not have to worry about the security of their personal data, accounts and information. There is no opportunity for anyone else to access their personal information without proper permission. SaaS models work just like that.
Let’s take a look at the main features and characteristics of SaaS. This will help us understand the reason behind its popularity and use around the world in recent years.
Just like a bank, in a multi-tenant architecture model, all users and applications share a single infrastructure and a single shared database. This infrastructure is maintained centrally by the host/vendors. Because SaaS vendor customers are all on one platform and database, vendors can innovate and implement changes more quickly and efficiently. This can save a lot of development time that would otherwise have been spent on maintaining many old code versions
Easy and efficient customization
SaaS models enable users to easily and effectively customize various applications according to their business needs and processes. This is enabled without any impact on the overall infrastructure. The structure of the form allows for customization in a piecemeal manner. It is unique to each user and is maintained through the use of timely upgrades. This ensures lower customer risks and lower adoption costs.
With the SaaS model, you can customize applications with a simple point and click. This makes traditional business software look completely outdated and eliminates the huge time it takes to update traditional business software.
Improve data access
Improving data access from any networked device makes the platform easier to manage privileges and monitor data usage as well.
Companies are starting to develop SaaS integration platforms (or SIPs) to build additional SaaS applications. SaaS has transcended the functionality of standalone software and has become a platform for various mission-critical applications. Statistics show that the overall size of the public SaaS market was expected to reach $157 billion in 2020 with 80% of companies already using at least one SaaS application.
Due to the high flexibility, scalability, and cost-effectiveness of SaaS models, more and more companies are incorporating them. SaaS has found its applications in a range of fields and industries. Some of the most popular areas of SaaS applications are:
- Collaboration / Social Media / Business Communication
- Customer services and support
- HR and Talent Management
- Product purchase, expenses and sourcing
- Business Administration
- Software development and QA/QC testing
- business intelligence
- Business Analysis
- Budgeting, reporting and business planning
- Governance, Risk and Compliance Assessment
- ERP, Manufacturing and Supply Chain
- Financial and Accounting Systems
However, every company should be aware of the latest SaaS product marketing trends to make the best use of the model in 2022. Let’s take a look at the top SaaS product marketing trends.
Top 10 SaaS Product Marketing Trends for 2022
With the SaaS industry forecasting a compound annual growth rate (CAGR) of 9.22% between the years 2019 to 2023, and the market size growing by $60.36 billion during 2019-2023, let’s take a look at the best SaaS product marketing trends that will be in the supplement market in 2022.
1. Popularity of Marketing Feature
SaaS solutions are constantly evolving and companies are constantly adding new features, tools, and plugins to their applications and products. Feature marketing is where SaaS companies create parallel products that provide added value to the same users. Although these products are independent and isolated from the main product of the company.
SaaS companies continually collect feedback from their existing customers to improve their existing products. Besides, adding new features will open up opportunities to create additional useful content for the site. We all know that new content boosts SEO of a website and generates more traffic, which helps in acquiring an increasing number of customers.
The main benefits of Feature Marketing in 2022 are:
- Attract new clients
- Diversification of business in different market segments
- Convert free trial users into paying customers for new upgrades
- Retain existing customers with new features
2. Original advertisement
Statistics show that about 26% of all internet users block ads on their devices. Reports also indicate that the ad ban will result in a revenue loss that is expected to reach just over $12 billion in the United States in 2022.
These statistics clearly indicate that display ads are losing relevance and may not be effective for SaaS products. That’s why native ads are gaining popularity and will be widely adopted in 2022.
Native ads open up great opportunities to reach potential customers during their decision-making period, and they are also key to converting that audience.
Native ads are most effective when the content is valuable to readers, so most companies create content that answers the queries and problems of their audience. Highlighting the product’s role in solving problems is a key element of native ads in 2022.
Besides, native ads can be posted on business websites or any other third party website and can effectively bypass ad blockers. Studies have shown that Native ads are shown 53% more than traditional display ads.
3. Using AI and Machine Learning in highly personalized marketing campaigns
Statistics show that the Artificial Intelligence as a Service (AIaaS) market will reach $6-7 billion by the end of 2023. Lots of SaaS companies are using AI to improve user experience. This is particularly enabled through the use of chatbots. Studies show that 80% of B2B marketers expect AI to revolutionize the industry by 2020.
AI and machine learning in SaaS marketing can help with data-driven marketing campaigns and highly personalized campaigns that are highly user-focused. Artificial intelligence and machine learning use behavioral and real-time data. This is used to make highly contextual messages that are relevant to users. AI technologies can also process huge amounts of data. When AI is combined with ML, they can optimize various marketing campaigns to ensure the best return on investment.
4. Product or platform disassembly strategies
The platform disintegration strategies are likely to boost and improve conversion for SaaS companies in the near future.
This is reinforced by the investigation of SaaS companies indicating that not all of the functionality on the platform is suitable for every prospect and their individual needs. This is where product deconstruction strategies can be most helpful.
By separating products, companies divide their products into smaller, more specific parts. These specific parts help in solving specific problems of the users. This helps companies improve and improve the user experience.
5. User-centric branding
In 2022. The motto of SaaS companies is to create a brand that aims to build relationships with potential customers. This will be done by creating user-centric stories. This means that brands will create content that users want to hear. Marketers have realized that branding in SaaS, especially in 2022. is very important.
Many SaaS companies place great emphasis on branding. This is to create a distinct brand identity that helps them stand out from the crowd. SaaS companies emphasize providing consistent details across all customer touch points.
6. Flexible Pricing Strategies
The price of SaaS products directly affects the purchasing decisions of customers. According to studies, 98% of SaaS companies have achieved positive results by changing their pricing policies as of 2018.
So the majority of SaaS companies will adopt flexible, data-driven pricing strategies in 2022.
While disassembly will affect the price of the products, separate and flexible prices will be adopted. This will ensure that users pay a small price for a service that can solve a specific problem, rather than buying the entire package or all of the services.
Some of the pricing strategies that are expected to become more popular in 2022 are:
- The freemium model will continue to be a key part of pricing strategies in the SaaS business.
- The per-user pricing model is a user-driven pricing model, and the price is determined by the number of users of the product.
- Pay as you go is another popular pricing model. This pricing model enables users to pay based on their usage over a certain period, which is common for cloud service providers.
- Market penetration pricing where companies enable users to use all features of the product at the lowest cost.
- Business volume based pricing offers different pricing plans for different business volumes. These include small, medium and large companies and at the enterprise level.
7. Improved customer retention
More and more users on social media channels. This has made interacting with customers on social media one of the best ways to improve customer experience. Customer acquisition is a challenging task in a SaaS business and customer retention is an even more challenging task. An improved customer experience will enhance customer retention and customer satisfaction and will encourage customers to pay more. This will subsequently increase revenue as well.
8. Video Marketing
Online videos make up 85% of all consumer internet traffic in the US. Video marketing is something that simply cannot be ignored in any field or marketing campaign. Marketers and business owners, especially SaaS companies, invest huge sums in video marketing. Text-only content is slowly losing relevance and video content is the new “hack” in marketing.
9. Create a brand experience
Customer needs are constantly evolving. Customers seek core value propositions, which drive performance and results. Brand positioning and messaging is becoming imperative in the SaaS marketplace, particularly for customer acquisition and retention. The brand experience that customers are looking for should be distinctive and engaging and also build a real and natural emotional connection with users.
10. Interactive graphs
Studies show that infographics are liked and shared three times more than any other type of content. Reports also indicate that 40.2% of marketers consider infographics the best visual format for audience engagement. SaaS companies are already using interactive graphs to interact with prospects and this year will be no different.
With the above list of the top 10 SaaS product marketing trends in 2022. you can craft the perfect strategy for your marketing campaigns.
Make sure to implement it the right way and beware of any other bullish trends in the market in the near future! The market is dynamic and ever-evolving. So keep your mind and eyes open to all possibilities.
Guest Author: Harikrishna Kundariya, Marketer, Developer, IoT, ChatBot and Smart Blockchain, Designer, Co-Founder, Director of eSparkBiz Technologies. His 8+ years of experience enables him to provide digital solutions for new start-ups based on the Internet of Things and ChatBot.