What is SaaS Marketing? Practical Advice, Real Results

What is SaaS Marketing? Practical Advice, Real Results

SaaS marketing. Sounds complicated. Like some dark art only accessible to Silicon Valley types with more funding than sense. Many companies have fallen for that myth.

It's not.

But the sheer volume of nonsense masquerading as marketing advice is staggering. Entrepreneurs and small businesses, you're often sold a dream – a “growth hack” here, a “viral loop” there. You chase shadows, listen to self-proclaimed “gurus,” and wonder why your brilliant SaaS idea isn't taking off. This isn't about hiring a massive marketing team overnight; it's about smart, foundational work.

Here's a dose of reality: there are no magic tricks. This is about brutal honesty. It's about practical, observable steps. Forget the fluff. Let's talk about what genuinely moves the needle for your software product and helps you achieve your business goals.

The Truth About Your “Revolutionary” SaaS Product

Too many founders want to talk marketing before facing the music about their software product. That's like picking out curtains before you've laid the foundations for the house. Madness. The entire process needs to start with the product itself.

Before You Market Anything: Is Your Product Ready?

The adage “if you build it, they will come” is rubbish, especially in the crowded SaaS market and the wider industry.

You need an honest self-assessment. Does your product solve a real problem for a specific group of people? Is it demonstrably better, or at least significantly different and more valuable in a particular way, than existing alternatives? Be brutally honest. Ask potential customers, not your mum. These are the users who will ultimately determine your success.

There's a world of difference between a Minimum Viable Product (MVP) – that first, clunky but functional version – and a Minimum Marketable Product. The latter is something people might pay for and tell others about. Don't confuse the two. Many businesses rush through this crucial step.

“Product-Market Fit” Isn't a Buzzword, It's Your Lifeline

You'll hear “product-market fit” thrown around a lot. It's often treated like some mystical state.

Here's what it means: a decent number of your target customers are not just using your product but would be genuinely gutted if it disappeared. They're getting real, ongoing value. They're probably telling others about it, unprompted, becoming a source of organic marketing efforts.

Signs you don't have it?

• High churn. People sign up, then vanish. Your customer churn figures are a stark warning.
• Low engagement with your platform. They're in but not using it. There are a few active users.
• You're struggling to get clear, positive testimonials.
• Your sales process is torturously long for what should be a straightforward solution.

Marketers can't fix a fundamental lack of product-market fit. Trying to force marketing at this stage is like setting fire to a pile of cash. It might make a pretty blaze, but then it's just gone. Your marketing budget will evaporate.

A recent source suggests that around 42% of startups fail because there's no market need for their product. Don't let your company be one of them.

Who Are You Selling To? Defining Your Ideal Customer Profile (ICP)

“Our SaaS is for everyone!” No, it isn't. Stop saying that. It's lazy thinking, and it makes your marketing impossible. Defining your ideal customer is paramount.

Your Ideal Customer Profile (ICP) isn't just about demographics – company size, industry, and job titles. It's about psychographics.

• What are their deepest professional pains?
• What “jobs” are they trying to get done where your SaaS is the perfect tool?
• Where do they “hang out” online? What blogs do they read? What communities are they part of? Which social media platforms do they frequent?
• What triggers them to look for a solution like yours via search or other channels?

If you don't know your ICP intimately, your marketing messages will be generic. Your chosen marketing channels will be scattergun. You're essentially shouting into the void and hoping anyone listens. That's not a strategy; it's a lottery ticket for acquiring leads.

Core Pillars of SaaS Marketing That Don't Change

The internet is awash with so-called “growth hacks.” Most are fleeting marketing tactics, not sustainable strategies for Growth Marketing. Instead of chasing shiny objects, focus on these foundational pillars. They aren't glamorous, but they work for SaaS marketing.

Pillar 1: Content That Doesn't Put People to Sleep (SaaS Content Marketing)

The purpose of SaaS content marketing and a robust content strategy isn't just to churn out blog posts stuffed with keywords. It's genuinely educating, informing, and solving problems for your ICP. It's to build trust and demonstrate your expertise. This is core to any digital marketing success.

Think about it: what do you do when you have a problem? You search for answers, often using Google or other search engines. Your valuable content needs to be those answers. Each piece of content should serve this purpose.

This isn't just about your blog. It's about:

• Help documentation is helpful. Good content creation matters here, too.
• Case studies that tell a compelling story about how your software product helped other businesses.
• Webinars that offer real value, not just a sales pitch. These can generate qualified leads.
• Your audience can use templates, checklists, and other types of content.

SaaS SEO is critical to this, aiming for better search engine optimisation. But it's more than just sprinkling keywords. It's about understanding user intent. What is someone looking for when they type a specific phrase into Google? Match that intent. A high search volume for irrelevant terms is useless.

As for formats, don't just follow the herd. Everyone's doing “ultimate guides.” Most are sprawling, unfocused, and, frankly, unreadable. Sometimes, a series of short, sharp articles or a well-structured FAQ page is far more effective. Your content marketing strategy needs diversity.

I remember a B2B SaaS firm client obsessed with creating these incredibly complex, animated infographics. They looked pretty, cost a fortune, and took ages. Their target audience? Overworked IT managers within their target market segments.

We switched to producing simple, no-nonsense PDF checklists and troubleshooting guides. User engagement shot up. Conversions followed. Why? Because it directly addressed their immediate needs in a format, they could quickly digest and use. Sometimes simpler is smarter. Even a basic marketing plan should highlight such practicalities.

Pillar 2: Getting Found – Strategic SaaS SEO

Ah, SaaS SEO strategy. The art and science of ensuring your ideal customer can find you when they're looking. This plays a key role in inbound marketing efforts.

Forget the vanity goal of “ranking #1 for [massively broad keyword].” It's often a waste of resources and attracts the wrong kind of traffic. You want to rank for terms that indicate genuine buying intent or a problem your SaaS solves. Understanding industry trends can help refine this.

Focus on:

• Problem-aware search terms: “How to reduce employee onboarding time.”
• Solution-aware search terms: “best project management software for small agencies.”
• Brand-related terms (long-term): “Your company name reviews.”

The unglamorous essentials of SEO haven't changed:

• Technical SEO: Site speed, mobile-friendliness, crawlability. Get the foundations right for a good user experience.
• On-page SEO: Clear titles, relevant content, sensible internal linking.
• Quality backlinks: Earned, not bought, from reputable sources in your niche. Guest posting can be a valid tactic here.

It's a long game. Don't expect miracles overnight. But consistent effort here pays dividends for years, making it a cornerstone of your marketing strategy. This isn't for a marketing department that expects instant wins.

Pillar 3: Talking to People (Beyond Automated Drivel)

In a world drowning in automation, genuine human interaction can go a long way in building and fostering customer relationships. This is where targeted outreach comes in.

SaaS email marketing isn't about blasting a purchased list with generic offers. That's spam. It's about building a list of people who've opted in and sending them relevant, valuable information. Consider using robust email marketing software for this.

LinkedIn can be powerful for B2B SaaS marketing, but again, it's about quality, not quantity. Don't be that person who sends a connection request immediately, followed by a five-paragraph sales pitch. Build relationships first. Offer value. Some might even use a cold outreach tool, but finesse is key.

When is outbound marketing for SaaS appropriate?

• When you have a very clearly defined, high-value ICP.
• When your product solves a significant pain point for that ICP.
• When you can craft a highly personalised, respectful message.

There's a fine line between helpful personalisation and “creepy” automation that parrots back someone's job title. Err on the side of being human to build long-term customer relationships.

Pillar 4: Product-Led Growth (PLG) – If It Suits Your Model

Product-led growth (PLG) has become a buzzword. Here's what it means: your product is the primary driver of customer acquisition, conversion, and expansion. Think Slack, Zoom, Calendly. You try it, you like it, you (or your company ) pay for more features or capacity. This can be an effective part of Growth Marketing.

When does PLG make sense?

• Your product delivers value quickly and obviously.
• Staying independent is relatively easy for users (good SaaS user onboarding is key). This includes freemium users if you have them.
• There's a natural path from free/basic use to paid use. This often involves well-structured freemium plans.
• Your target users can often adopt it without needing layers of approval.

When is it a terrible idea?

• Your product is complex and requires significant setup, training, and deep expertise.
• Your sales cycle is inherently long and involves multiple decision-makers.
• The value isn't immediately apparent without guidance.

SaaS free trial and freemium model SaaS are common PLG tactics.

• Free Trial: Full access is available for a limited time. It is good for letting users experience the full value. Risk: they don't get around to it or don't see value fast enough.
• Freemium: Basic features are free forever; pay for advanced ones. Suitable for broad adoption and building a large user base. Risk: Freemium users never convert, and support costs mount for your platform.

Neither is a silver bullet. Choose based on your product, ICP, and overall business strategy.

The Metrics That Matter (And The Ones That Are Pure Vanity)

You can track a million things in SaaS. Most don't tell you if your business is healthy or heading for a cliff. Focus on the SaaS marketing metrics and key performance indicators that drive decisions. Google Analytics can be a helpful tool here.

Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV or CLV) is the total revenue you can expect to generate from a single customer account. This is, arguably, the most critical metric in SaaS marketing.

Why? Because it tells you how much you can spend to acquire a customer and remain profitable. It highlights the importance of retention and creating a loyal customer.

Simple ways to think about increasing LTV:

• Reduce churn: Keep customers longer. Improving customer satisfaction is crucial.
• Increase prices (strategically): If you're delivering value, charge for it.
• Upselling/Cross-selling: Encourage customers to use more of your product or related business products.

If your LTV is consistently low, your business model is on shaky ground.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC), sometimes referred to as customer acquisition cost, is what it costs you, on average, to get a new paying customer. This includes all your sales and marketing spend.

Understanding your CAC is critical. Are you buying customers at a loss? You can stomach that for a short period with VC backing. For most small businesses and bootstrapping entrepreneurs, it's unsustainable. This metric is a core part of your marketing activities.

The golden number here is the LTV: CAC ratio. Your LTV should be at least 3x of your CAC. If it's 1:1, you're losing money with every new customer (once you factor in your cost of goods sold). Smart acquisition is key.

Churn Rate: The Silent Killer of SaaS Dreams

The SaaS churn rate is the percentage of customers who cancel their subscriptions in a given period. It's a silent killer because churn rates often creep up. By the time it's alarming, you're losing customers faster than you can acquire them. Your customer success teams play a vital role in managing this.

What's an “acceptable” churn rate? For venture-backed SaaS, aim for less than 5-7% annually. For monthly churn, that means well under 1%. Small businesses might see slightly higher initially, but it needs to be a constant focus. Data from 2023 shows that median annual revenue churn rates can vary significantly by company size. However, a good benchmark is often cited as 5-7% or lower, source.

Key drivers of churn:

• Poor product-market fit.
• Bad customer service leads to a poor customer experience.
• Competitors are offering better value.
• Customers are not achieving their desired outcome with your product.
• Involuntary churn (e.g., failed payments).

Marketing can help reduce churn by attracting better-fit customers in the first place and by effective onboarding and ongoing communication that reinforces value. But it can't fix a fundamentally flawed product or service.

MRR and ARR: Tracking Real Growth

Your core progress indicators are Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR). They tell you how much predictable revenue you have coming in, which is essential for understanding your growth stage and potential market share.

Focus on the growth of your MRR/ARR, not just one-off revenue spikes from annual upfront payments (though those are nice, too). Consistent, predictable revenue growth is the aim of any company.

Vanity Metrics to Politely Ignore (or at least heavily discount)

These are the numbers that look good in a report to someone who doesn't know better, but often signify very little about business health.

• Social media likes/followers: They're mostly noise unless you can directly attribute leads and sales to them. It's easy to buy followers; it's hard to buy customers. Your social media marketing needs tangible results.
• Website traffic without conversion: Millions of visitors mean nothing if no one signs up, requests a demo, or buys.
• “Impressions”: This is the fog of marketing. Your ad was “seen” (maybe by a bot or for half a second). So what?

Straight Talk: If your marketing agency is crowing about “impressions” or “reach” but can't tell you how many actual leads or sales resulted, ask them if those impressions paid for their last holiday. The silence might be telling.

Building a SaaS Marketing “Machine” (That Doesn't Require a Million Quid)

You don't need a massive marketing budget to start making headway. You need focus and a willingness to do the unglamorous work consistently. This is true even if you're operating on a tight budget.

Starting Lean: What to Focus on With a Small Budget

The biggest mistake I see small SaaS businesses make is trying to be everywhere simultaneously. A bit of Facebook, a sprinkle of LinkedIn, a half-hearted blog, and some Google Ads … it's a recipe for doing everything poorly.

Pick one or two core SaaS marketing channels where your ICP spends their time and where you can genuinely compete. Then, aim to master them. These are your effective channels.

• Is your audience constantly searching for solutions on Google? Double down on SaaS SEO strategy and target Google Ads.
• Are they active in specific LinkedIn groups? Focus on providing value there and building connections.
• Is there a niche forum or community where they all congregate? Become a helpful, respected member. This is where your employees can play a role.

Build an excellent SaaS sales funnel, even if it's simple.

• How do people become aware of you (your acquisition channels)?
• How do they show interest?
• How do they evaluate your solution (e.g., SaaS free trial, demo)?
• How do they become a customer? Map it out. Optimise each step of this process.

And don't underestimate leveraging your existing network. Early customers often come from people who know, like and trust you. Just don't be a pest about it. Strong customer relationships start here.

When (And What) to Automate Your Marketing

Marketing automation for SaaS can be a godsend for efficiency. It can also be a fast track to sounding like a robot if overused or poorly implemented.

Good places for automation:

• Email welcome sequences: Onboard new users or trial sign-ups. This is a core part of SaaS email marketing.
• Lead nurturing: Send targeted content to leads based on their behaviour.
• Basic customer support responses: Use the link to the help docs for common queries.

Bad places for automation:

• Initial outreach to high-value prospective customers (personalise it!).
• Handling complex customer complaints.
• Anywhere, a human touch can build a stronger relationship. Your customer success teams know this.

Use automation to free up your time for the things humans do best: strategy, creativity, and genuine connection. This is where your marketing team should focus its human expertise.

The Role of Branding in SaaS (It's Not Just a Logo)

SaaS branding is more than your company name, logo, and colour scheme. It's about what you're known for. It's the feeling people get when they interact with your company. It's your reputation in your industry.

• What specific problem do you solve better than anyone else for your ICP? This is your unique value proposition, SaaS.
• What's your company's personality? (Are you serious and corporate? Fun and quirky? Direct and no-nonsense?)
• Is your messaging consistent across every touchpoint – website, emails, sales calls, and the product (your platform )?

A strong brand builds trust and can make you the default choice, even if a competitor is slightly cheaper or has one extra feature. For ideas on creating a cohesive brand identity alongside your marketing efforts, consider exploring options like Inkbot Design's digital marketing services. They understand that marketing and branding go hand-in-hand. This is fundamental to any basic marketing.

Experimentation vs “Shiny Object Syndrome”

The SaaS world moves fast. New marketing channels, tactics, and “must-do” always pop up. It's tempting to jump on every bandwagon. Don't. That's “shiny object syndrome,” and it kills focus and drains your marketing budget. Understanding market dynamics is about more than chasing fads.

Instead, adopt a mindset of structured experimentation.

1. Form a hypothesis: “We believe that running targeted LinkedIn ads to VPs of Sales in the fintech industry, promoting our new compliance checklist, will generate qualified demo requests.”
2. Define success: “We're aiming for 20 demo requests at a CAC of under £150 within 30 days.” These are clear business objectives.
3. Run the experiment: With a defined marketing budget for a specified period.
4. Analyse the results: Did it work? Why? Why not? Use Google Analytics and other tools.
5. Iterate or kill: Double down on what works, ditch what doesn't. This is key to refining your inbound marketing strategy.

I once worked with a SaaS founder who was a classic case of shiny object syndrome. Every Monday, he'd read a new marketing blog and want to pivot the entire marketing strategy. One week, it was all about Clubhouse (remember that?). The next was some obscure AI-powered ad platform. They spent a year chasing trends and achieved precisely nothing regarding sustainable growth.

Meanwhile, their competitors were steadily building out their SEO and Content Marketing. Slow and steady often wins the race. This is a lesson for all marketing managers.

Common SaaS Marketing Blunders (And How to Not Make Them)

Experience is a great teacher. Other people's experience is cheaper. Here are some classic SaaS marketing faceplants I've seen repeatedly. Many marketers make these.

Blunder 1: The “Marketing Will Fix Our Rubbish Product” Delusion

I've touched on this, but it bears repeating. Marketing amplifies what's already there. If your software product is confusing, buggy, or doesn't solve a real problem, marketing efforts will help more people discover how bad it is faster. Fix the product first. Full stop. Your internal teams need to be aligned on this.

Blunder 2: Ignoring Customer Retention Until It's Too Late

So much SaaS marketing focuses on SaaS customer acquisition. Getting new logos. It's exciting. But if your metaphorical bucket has holes (high churn ), you'll never fill it up. You need satisfied customers to grow your customer base.

Acquiring a new customer is almost always more expensive than keeping an existing one. According to studies, attracting a new customer can cost 5 times more than keeping an existing one [source]. Simple customer retention strategies for SaaS are vital:

• Excellent onboarding for new users.
• Proactive customer support.
• Regularly communicating value and new features to current customers.
• Listening to feedback (and acting on it). This improves the customer experience.

Blunder 3: Price Wars and Undervaluing Your Service

When you don't know how to articulate your value, competing on price is tempting. This is usually a race to the bottom, especially for small businesses. There will always be someone willing to be cheaper.

Instead, focus on clearly communicating the value your SaaS provides. How does it save customers money? How does it save them time? How does it help them achieve their goals? Justify your SaaS pricing models with tangible benefits, not just a list of features. This applies across all market segments.

Blunder 4: Inconsistent (or Non-Existent) Messaging

If you can't explain clearly and concisely what your SaaS does, who it's for, and why it's different, how do you expect your potential customers to figure it out? This is a fundamental failure of your marketing plan.

Your core messaging – your value proposition – should be crystal clear and consistent everywhere: your website homepage, your ad copy, your sales pitches, and even your social media bios on various social media channels. Your marketing communications need to be aligned.

Blunder 5: Buying “Guaranteed Leads” or Dodgy Email Lists

Oh, the lure of a quick fix. Someone emails you offering “10,000 qualified leads in your industry for £200.” Delete it. Immediately.

These lists are almost always garbage. They're scraped, outdated, and full of people who have never heard of you and have no interest in your product. Emailing them will tank your sender reputation, get you marked as spam, and, in some jurisdictions, land you in legal hot water. It's just not worth it. Building your list of opted-in contacts is the only sustainable way for SaaS email marketing.

What's Changing in SaaS Marketing (And What's Just Hype)

The fundamentals remain, but the landscape does shift. It's important to distinguish genuine evolution from fads in SaaS marketing. Keep an eye on market dynamics.

AI in SaaS Marketing: Helper or Hindrance?

Artificial Intelligence is the current belle of the ball. And yes, it has practical uses in SaaS marketing:

• Content assistance: Brainstorming ideas, drafting outlines, polishing copy (if used judiciously and always human-edited). This can accelerate content creation.
• Data analysis: Identifying trends in customer behaviour and segmenting audiences.
• Personalisation (to a degree): Dynamically adjusting website content.

The danger? Relying on it too much leads to soulless, generic, AI-generated spam that actively repels customers. One of my pet peeves is seeing “thought leadership” articles 100% ChatGPT written with some keywords sprinkled in. It fools no one who matters. AI is a powerful tool, but it is not a substitute for genuine human expertise, creativity, or strategic thinking within your marketing department. Use it to augment your intelligence, not replace it. Your marketing efforts still need a human touch.

The “Community-Led Growth” Trend

Building a SaaS community around your product or industry is gaining traction. An engaged community can help with support, provide feedback, drive advocacy, and even attract new customers to your user base.

Is it a viable marketing strategy? For some, absolutely. It can be incredibly powerful if your product lends itself to shared learning and collaboration or has a passionate user base. But it's not a quick win. Building and nurturing a genuine community takes significant, sustained effort. It requires facilitation, valuable content, and a genuine desire to provide value to members, not just extract value from them. Please don't start a community thinking it's a low-effort lead gen tactic. SaaS community building requires dedication.

The Enduring Power of a Good Story

Even in the often-dry world of B2B SaaS marketing (and for many B2B marketers ), narratives sell. People connect with stories, not just feature lists.

• How did your company start?
• What's the “why” behind your product?
• How have you helped other customers achieve remarkable things?

Authenticity trumps corporate speech every single time. Tell human stories. Be relatable. It builds trust far more effectively than jargon-filled brochures. This should be part of your Content Marketing approach.

So, What Now? Practical First Steps for SaaS Founders

Feeling overwhelmed? Don't be. SaaS marketing, stripped of the hype, is about methodical progress towards your growth goals. Here's where to focus your energy first:

1. Nail your product and ICP. Seriously. Stop everything else until you have a good product that solves a problem for a clearly defined group. Talk to them. Get feedback. Iterate. This sets the stage for all future marketing activities.
2. Pick ONE acquisition channel and aim to master it. Don't spread yourself thin. Whether it's SEO, Content Marketing, targeted LinkedIn outreach, or something else, become excellent at that one thing first. This is a critical role for early-stage marketing efforts.
3. Talk to your customers. Constantly. Understand their evolving needs, their frustrations, and what they love. Their insights are marketing gold. This helps build strong customer relationships.
4. Measure what matters: Track your LTV, CAC, Churn Rate, and MRR/ARR. Make decisions based on this data, not gut feelings or vanity metrics. These are your core key performance indicators.
5. Be patient. Sustainable growth is a marathon, not a sprint. There are no overnight successes, despite what the charlatans promise. It takes time, effort, and resilience. This is vital for any company in any growth stage.

SaaS marketing isn't about finding some secret formula or “hack.” It's about deeply understanding your customers, building something genuinely valuable for them, and then intelligently, consistently, and honestly communicating that value. This applies to your entire marketing organisation, even just you.

Stop looking for shortcuts. There aren't any worth taking. Start building something real. Focus on the fundamentals. The rest is just noise.

If this no-nonsense approach to SaaS marketing resonates, you'll likely find our other articles helpful in cutting through the usual industry fluff. And if you're at a point where you want direct, observant input on your brand's digital marketing presence and how to make it work for you, well, that's what our digital marketing services are designed for. We focus on delivering tangible business objectives for our clients.

Ready to have a frank conversation about your specific SaaS marketing challenges? Then, request a quote and see if we're a fit.

FAQs (Frequently Asked Questions)