Marketing and Lead Generation Strategies for SAAS companies
Software as a Service (SaaS) is a popular implementation of business management software and is widely used by consumers. SASS model represents lower month-to-month costs, which allow organizations to have access to powerful software without a large up-front investment. Prospect Solutions’ Vtiger CRM is a good example of SAAS.
Without ROI focused marketing and lead generation strategy this model can be an accounting nightmare for growing SaaS companies. Because of huge up-front investments, support and maintenance the early trickle of revenue can be not enough to sustain operating costs.
In order to get past first growing pains and continue to scale, SaaS companies need a healthy supply of new customers. The biggest metric for determining how healthy the supply is not monthly sales, but lead generation and sales pipeline monitoring. In fact, lead generation for software companies is the single most important facet of helping SaaS companies grow and prosper.
Why Sales Are a Bad Metric
Sales pipelines for SaaS businesses can be long and complex. Many SaaS providers offer free trials, and the potential churn of customers switching to competitors early on can be damning to sales.
The problem with focusing on sales is that they are the end result of a long and arduous pipeline. While some leads enjoy the free trial and others take time to convince, months can pass by between a lead and an actual sale. For this reason, looking at sales figures is actually looking several months into the past. Even trying to count the amount of potential deals in the pipeline can be deceptive if there is no uptake on the back end to keep potential customers flowing in.
Since sales can be so unpredictable for these reasons, a continuous supply of leads is needed to combat the effects. Not only that, but the rate of leads should increase month-over-month in order for the company to be able to grow predictably.
Using LVR to Anticipate Performance
Instead of being bogged down in the past, SaaS companies need to prepare for their future by growing their network of quality leads. Sometimes referred to as the Qualified Lead Velocity Rate (LVR), this metric measures the growth of lead generation for software companies every month or period.
With the consistent growth of qualified leads, more potential customers are entering the pipeline, and suddenly converting every single one is not as drastic of a necessity. You can focus on the prospects that matter and enjoy the revenue slowly multiplying until sales far outweigh capital expenses and costs.
The only problem is that many SaaS companies cannot afford an in-house dedicated marketing staff to bring in the qualified leads needed. Consider outsourcing your lead generation to an experienced sales brand like Prospect Solutions. We track down the highest quality leads and can scale with your business. Visit our services page to learn about our integrated marketing and lead generation for software companies capabilities.