What is Growth Marketing for your SaaS?
Note:
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What is Growth Marketing for a SaaS?
*Samuel Thompson* shares his insights about growth marketing.
An in-depth overview to help you rethink how you can grow your SaaS faster.
First, let’s acknowledge the traditional marketing funnel.
Awareness: Customers SEE it
Interest: Customers LIKE it
Desire: Customers WANT it
Action: Customers BUY it
Most businesses use these 4 steps, but there are other levers you can pull to grow faster
On the other hand, GROWTH marketing takes a more high-touch approach so you can better optimize for growth. It understands:
- Awareness
- Acquisition
- Activation
- Retention
- Revenue
- Referral
Growth marketing is the process of increasing a company’s revenue by applying an experiment-driven and integrated approach to all stages of attracting customers. ~ SolidClick
Let’s explore how you can apply each to your business.
Awareness
The Question: How many people do you reach?
The first goal of awareness is to introduce your product to potential customers. This can be done through social media content, branded ads, etc
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Key Metrics:
- Content Impressions
- Social Followers
- Website Visitors
One of the best ways to build awareness is by sharing valuable content and sharing your journey on Twitter.
Examples:
- Build In Public like @damengchen
- Drop Valuable Threads like @heyblake
- Master Twitter Growth like @thedankoe
Acquisition
The Question: How many people take the first important step?
This is where you identify interest and gather information so you can re-market to prospects/leads until they become customers.
Read:
Key Metrics:
- Cost Per Lead
- Calls Booked
- Pipeline Value
This is when you start building a relationship with your potential customers. You have conversations to understand if you can help them.
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Examples:
- LinkedIn Outreach like @linkedin_king
- Cold Email like @blackhatwizardd
- Free Resources like @NickAbraham12
Activation
The Question: How many people sign-up?
You now have the proven interest of a potential buyer. Activation is when you present your solution to solving their problem and let them say “YES” to your offer.
Read:
Key Metrics:
- CAC
- Trial Sign-Ups
- New Customers
Your goal is to get interested prospects across the finish line. Make it a no-brainer so people who WANT it, BUY it.
Examples:
- Run Twitter Ads like @wizofecom
- Offer Free Trials like @Yannick_Veys & @SamyDindane
- Offer Sample Discounts like @JCX
Retention
The Question: How many people come back for a second/third/tenth time?
Once your customer has joined, it’s your job to keep them there. Your goal is to build a relationship and deliver value EARLY.
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Key Metrics:
- Churn Rate
- Trial Conversions
- In-App Activity
Acquiring a new customer is more expensive than keeping an existing one. Make the most out of every customer relationship and build value.
“If a typical SaaS business loses 2-3% of their customers each month to churn, that means they must grow by at least 27%-43% annually to maintain the same revenue.” ~ Matt Biloti
Examples:
- Send personal DMs like @5harath
- Build a community like @jimmy_daly
- Share user stories like @KennethCassel
Revenue
The Question: How many people start paying? And how much do they pay?
This is the goal of any business. Find a revenue model that creates the most sustainable base for profitable growth.
Key Metrics:
- LTV
- AOV
- ASC
The goal is to maximize the revenue for each paying customer. Bonus points for increasing your ACV in the first 90 days.
Examples:
- Offer Lifetime Deals like @JanelSGM
- Offer Quarterly Pricing like @DruRly
- Offer One-Time Upgrades like @coreyhainesco
Referral
The Question: How many people refer friends to your business?
Your goal is to deliver SO MUCH VALUE to your customers that they can’t help but tell people about you. Acquire 1 brand advocate = acquire 10 customers.
Read:
How referrals and word of mouth can help your SaaS grow? (2024)
Key Metrics:
- Shared Links
- Referred Users
You can also leverage reward programs to create an even bigger incentive for your customers to promote your business.
Examples:
- Offer More Usages like @nathanbarry
- Offer Commissions like @dr
- Offer Gift Cards like @glossier
Conclusion
Growth marketing is all about understanding your user journey with data.
Understand your product. What is the behavior, what is the journey of the user, and what does it mean to be successful? ~ Jesus Requena