Many Software as a Service companies struggle with marketing. Awareness, conversion and retention are challenges. In the past two weeks, I have been exposed to over a dozen SaaS companies through talks delivered for an incubator. I know why they are struggling.
SaaS marketing is highly templated, and everyone is using the same templates. What’s more, there is startling little differentiation regardless of the nature of the software. Finance SaaS solutions are marketed the same as Design SaaS or Procurement SaaS. There are tons of different flavors, but at the end of the day, it is the same ice cream cone. Once, I thought, law firms held the gold medal for parity marketing but SaaS now rules.
The root of this is clear, SaaS has a low barrier to entry. If you remember business theory, industries with low barrier to entry face greater competition. While competition should drive differentiation, in the SaaS universe, it has produced shocking (and boring) sameness.
SaaS companies like to say they are B2B companies, they are not. They are more like dry cleaners, locksmiths, massage therapists, florists, dentists, landscapers, and snow removal businesses (the last one is a nod to the fact I live in Quebec). To illustrate my point, here is a fun exercise. Imagine you are a locksmith or florist.
SaaS companies say they are B2B companies, they are not. They are more like dry cleaners, locksmiths, massage therapists, florists, dentists, landscapers.
Now, further imagine how you would market that business. Except, you cannot discount your price or give anything away for free. How do you position versus the competition? How do you reach prospective customers? How do you become the #1 Locksmith in your area?Read more