Top 5 dangerous trends facing B2B SaaS companies
Admit it; running a B2B/SaaS company is as hard as it is exciting.
Building a non-physical product comes with challenges, and you need to find the right marketing strategy to promote your products. Not to mention, SaaS marketing is pretty demanding, as it necessitates steady but rapid growth to stay in business.
With the pressure that comes with this, it is fairly common for B2B SaaS businesses to get it all wrong with their marketing. This guide highlights common trends that cause most B2B SaaS companies to fail.
1. Using the Wrong Metric Calculations
Using the wrong metrics for a marketing campaign can be costly and may even lead to negative revenues in the long run. By using a broad campaign approach, companies burn more cash, consume more time, and convert little to no leads.
Additionally, most companies running ads assume that potential leads equate to actual leads. They then spend a fortune trying to convert them into actual sales.
Correct metric calculations for a marketing campaign can distinguish between success or a catastrophe.
2. Ignoring the Customer
We all focus on growing revenue for our businesses, but the truth is that the customer is always at the core. This is why it's shocking that some companies ignore the customer.
Remember, if there is anyone who can give an honest review about your software product, it is your customer. Therefore, ignoring their input only puts you and your business at risk of losing existing paying customers and potential clients who contribute to your overall growth.
Most importantly, customers of B2B SaaS companies primarily respond to logic rather than emotion. Valuing their input is crucial in generating demand for your service.
3. Lack of Clear Employee Recruiting Processes
Even in larger SaaS companies, most employee onboarding procedures are now ad hoc.
Employees seek access to services or credentials during onboarding rather than obtaining all the necessary onboarding materials upfront. This then slows down productivity for new employees and HR departments who have to deal with these requests.
The lack of a defined employee offboarding process also raises the risk of insider threats to an organization.
To be on the safe side, employee onboarding and offboarding obligations should not be assigned to a single person or department. This only results in a lack of accountability and ownership of the process.
4. Underestimating the Power of Social Media
Social media is a powerful tool for SaaS companies but most choose to ignore it entirely. They fail to realize that all their customers are on these platforms. Additionally, social media shows your customers that you are still relevant and gives them something to look forward to.
5. Shorting the Marketing ROI
The single most critical metric to grasp for the success of your marketing campaign is your marketing ROI. Essentially, your return on investment measures how much income you've made vs. how much you spent on a campaign. Unfortunately, calculating marketing ROI is much more complex than it sounds.Most SaaS marketers fail to factor in critical elements in the marketing process. They often look at the bottom line or go with their gut feeling that the campaign is working. But unless you're objectively measuring your results and comparing them to the costs, you'll never know how well your campaign is doing. Most marketing campaigns start with an unfavorable ROI and gradually ramp up to a positive range. So, it is crucial to take results into context.
Work With Experienced Marketing Agencies
For B2B/SaaS companies, success may take a little bit longer, but having a solid marketing strategy will help your business attract the right kind of customer and bring that success much sooner. TAM is a highly specialized team of professionals with a proven method for increasing revenue and achieving objectives such as new client acquisition for B2B/SaaS companies. Schedule a strategy call with us today.
