The 4P’s of Marketing for SaaS Products

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Marketing for SaaS Products
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Marketing for SaaS is a challenging task. The competition is fierce, and customers have a vast array of options. So, how can you ensure that your SaaS product stands out and attracts the right customers?

Let’s take the example of project management software. The owner of the product needs help to gain traction for it. They tried everything from social media advertising to email marketing, but nothing seemed to work. Then, they came across the 4P’s of marketing for SaaS products and realized that they need to focus more on the product aspect.

They neglected the other P’s – price, place, and promotion. Instead, they revamped the strategy, started experimenting with different pricing models, leveraged distribution channels, and crafted a comprehensive promotional plan. The efforts paid off, and they saw a significant increase in traffic, sign-ups, and revenue.

If you’re struggling to market your SaaS product effectively, you’re not alone. But don’t give up just yet. By understanding and implementing the 4 P’s of marketing, you can create a winning marketing strategy that sets your SaaS product apart from the competition. In this blog post, we’ll explore each of the 4 P’s in detail and provide practical tips and examples to help you create a successful marketing campaign for your SaaS product. 

So, let’s dive in and take your SaaS marketing to the next level!

1. The First P of Marketing for SaaS: Product

The “Product” P in the marketing mix refers to a company’s product or service. For SaaS companies, this means the software or platform customers use to solve a particular problem or meet a specific need.

Create a product that stands out

Understanding the product you’re working with and creating a product that stands out requires a comprehensive understanding of the target market, their needs, and the competition. Here are some tips for achieving this:

  • Conduct market research: This involves researching your customers and understanding their needs and preferences. You can conduct surveys and interview potential customers to understand their needs. This will help you understand their pain points and gaps your product can fill.
  • Identify unique features: Once the pain points are identified, SaaS companies can develop unique features that address them in a unique and innovative way. Once you have identified the features, you need to optimize your product to ensure it is most relevant in the market.
  • Improve user experience: A great user experience is essential for attracting and retaining customers. SaaS companies can improve the user experience by creating an intuitive and easy-to-use interface, providing excellent customer support, and regularly updating the product based on customer feedback.
  • Monitor competition: Another critical thing you need to do is monitor your competition. This will help you to understand what they are doing well and the gaps in their product that you can fulfill. This will help you create a unique product that stands out.
  • Continuously improve: Continuous improvement is essential for staying ahead of the competition and meeting customers’ evolving needs. SaaS companies should regularly solicit customer feedback and use that feedback to improve the product.

Market the product aspect of your SaaS

Here are ways to market the product aspect of your SaaS business:

  • Highlight key features and benefits of the product in marketing materials, such as website copy, social media posts, and email newsletters.
  • Use visual aids, such as infographics or videos, to illustrate how the product works and its benefits.
  • Offer free trials to potential customers to allow them to experience the product first-hand and determine if it meets their needs.
  • Provide demos or tutorials to show potential customers how to use the product and its features.
  • Leverage customer testimonials and case studies to provide social proof that the product works and has helped other customers achieve their goals.
  • Participate in industry events or conferences to showcase the product and connect with potential customers.
  • Use targeted advertising, such as search engine marketing or social media advertising, to reach potential customers searching for solutions the product can provide.
  • Develop partnerships or integrations with other tools or platforms that potential customers use to expand the reach and appeal of the product.

2. The Second P of Marketing for SaaS: Price

The “Price” P in the marketing mix refers to the amount customers are willing to pay for a product or service. In SaaS marketing, the pricing strategy plays a crucial role in determining the product’s success. 

How to determine the pricing of your product?

Determining the pricing of a SaaS product can be a complex process and requires careful consideration of various factors. Here are some steps to follow when selecting the pricing of a SaaS product:

  • Research the market: Start by researching the competitive landscape in the target market. Look at the pricing models of other SaaS products that offer similar features or target the same customer base. This will give you a sense of the pricing range that customers in that market are willing to pay.
  • Define your value proposition: Next, you need to determine the value of your product and understand what sets your product apart from the competition. To define your value proposition, you must understand your target audience. Then, understand the value you provide to your target audience. 
  • Understand your target market: The target market is the group of customers your product is for. For example, DMTiger is a LinkedIn prospecting tool that focuses on helping sales professionals, startup owners, freelancers, and recruiters. To identify your target market, here are the questions you need to ask:
  • Who is your potential customer?
  • What are their pain points and problems?
  • What do they want to achieve?
  • Analyze your costs: Determine the costs associated with developing, marketing, and maintaining your SaaS product. This will help you to establish a pricing model that covers your costs while also providing a reasonable profit margin.
  • Test your pricing model: Once you have established a pricing model, test it with a small group of customers to determine its effectiveness. Use customer feedback to make adjustments to your pricing strategy if necessary.

By following these steps, you can determine a pricing model that reflects your product’s value while also meeting your target market’s needs and preferences. Remember, pricing is not a one-time decision – it should be regularly reviewed and adjusted to reflect changes in the market and your product’s performance.

Pricing strategies for SaaS products

As mentioned earlier, several pricing strategies are commonly used in SaaS marketing. Here’s an overview of some of the most popular ones:

  • Usage-Based Pricing: This pricing model charges customers based on product usage. This can be determined by factors such as the number of users, actions taken, or the amount of data stored. This pricing model is often used by SaaS products that provide a specific service, such as video conferencing platforms or project management tools.
  • Subscription-Based Pricing: This pricing model involves a subscription fee for access to the product. The subscription can be charged monthly, quarterly, or annually, and the price can vary based on the number of features included in the subscription. Subscription-based pricing is commonly used by SaaS companies that offer a suite of tools or services that customers rely on for their day-to-day operations.
  • Freemium Pricing: This pricing model includes a free plan with limited features and paid plans with access to additional features. SaaS products often use this pricing model with a wide user base, as it allows them to attract more customers and upsell them to paid plans.

By choosing the right pricing strategy for their SaaS product, companies can maximize revenue while meeting their target customers’ needs and preferences.

SaaS Product Pricing Example

Product: Trello, a project management tool

Pricing Model: Trello offers a freemium pricing model, where the basic version of the product is available for free, and users can upgrade to a paid plan to access additional features.

The pricing plans for Trello are as follows:

Free: This plan offers basic features, including unlimited personal boards, cards, lists, and limited team boards.

Standard: This plan costs $6 per user per month and includes additional features such as unlimited boards, advanced checklists, custom fields, unlimited storage (250MB/file), 1,000 workspace command runs per month, single board guests, and saved searches.

Premium: This plan costs $12.50 per user per month. 

Enterprise: This plan costs $17.50 per user per month.

Trello’s pricing model combines freemium and subscription-based pricing, allowing users to start using the product for free and then upgrade to paid plans as they require more features and functionality.

By offering a range of pricing plans, Trello can attract both individual users and organizations of all sizes while also generating revenue through paid subscriptions.

3. The Third P of Marketing for SaaS: Place

The “Place” P in the marketing mix refers to the distribution channels used to make the product available to the customer. In the context of SaaS products, the distribution channels typically refer to the online platforms or marketplaces where customers can access and purchase the product.

Unlike physical products that require physical distribution channels, such as retail stores, SaaS products are typically distributed online, making them accessible to customers worldwide. 

Here are some effective place strategies for SaaS products:

  • Online marketplaces: SaaS products can be sold through online marketplaces such as the Apple App Store, Google Play Store, and the Salesforce AppExchange. By listing a product on these marketplaces, SaaS companies can reach a larger audience and take advantage of the marketing and promotion opportunities offered by the platform.
  • Partner with complementary products or services: SaaS companies can also partner with other companies that offer complementary products or services. For example, a marketing tool could partner with time-tracking software.
  • Offer integrations with popular platforms: SaaS products can integrate with popular platforms such as Slack, Google Suite, or Microsoft Teams, making it easier for users to incorporate the product into their workflow. This can increase the product’s visibility and make it more convenient for users to access the product.

Effective distribution strategies are essential to ensure that the SaaS product reaches its intended target audience. SaaS companies can maximize their reach and generate more revenue by understanding the various distribution channels available and selecting the most appropriate ones.

4. The Fourth P of Marketing for SaaS: Promotion

The “Promotion” P in the marketing mix refers to the tactics used to promote the product and raise awareness among the target audience.

Common promotional strategies in SaaS

In the context of marketing for SaaS, common promotional tactics include:

  • Content Marketing: Content marketing involves creating content to attract and retain a clearly defined audience. SaaS companies can use content marketing to educate their target audience about the product, establish thought leadership, and generate leads.
  • Social Media Advertising: Social media platforms like Facebook, Instagram, and LinkedIn offer powerful advertising capabilities allowing SaaS companies to reach a highly targeted audience. SaaS companies can effectively promote their product and generate leads by creating engaging ad content and targeting the right demographics.
  • Email Marketing: Email marketing involves sending promotional emails to a list of subscribers who have opted in to receive communication from the company. SaaS companies can use email marketing to promote new product features, offer special deals, and nurture leads.
  • LinkedIn cold outreach: LinkedIn cold outreach can be an effective promotional strategy for SaaS companies, particularly for B2B products. LinkedIn is a professional networking platform that allows users to connect with other professionals, join industry groups, and share content.

You can use a LinkedIn prospecting tool, such as DMTiger, for conducting your outreach activities.

You can use DMTiger’s smart campaigns feature to set up automated outreach campaigns for the following actions: connection request, follow, follow – company, send message/follow-up messages, endorse skills, view profiles and like/comment on a prospect’s recent posts.

Example of promotional strategy of SaaS

Zerodha is a technology-driven brokerage firm that provides online trading and investment services in India. The company has used several promotional strategies to grow its customer base and increase brand awareness. Here are some examples:

  • Referral program: Zerodha has a referral program that rewards existing customers for referring new customers. The program offers a cashback on brokerage fees for both the referrer and the referred customer, which incentivizes customers to invite their friends and family to use Zerodha.
  • Educational content: Zerodha has a blog and a YouTube channel that provides educational content on trading and investing. The company also offers free webinars and courses on topics such as technical analysis and fundamental analysis. This content helps establish Zerodha as a thought leader in the industry and attracts new customers who are interested in learning more about trading and investing.
  • Low brokerage fees: Zerodha charges a low brokerage fee compared to traditional brokers, which is a major selling point for customers. The company uses this as a key message in its marketing and advertising campaigns.
  • Online advertising: Zerodha uses online advertising on social media platforms such as Facebook and Twitter to target potential customers. The company also uses Google AdWords to target users who are searching for trading and investment-related keywords.

Final Thoughts

To sum up, the 4P’s of marketing are crucial to the success of any SaaS product. Let’s quickly recap the main points of this blog post:

  • Product – Understand your product’s unique features and benefits to make it stand out. Create a product that aligns with your target audience’s needs, and continually improve it based on customer feedback.
  • Price – Determine the right pricing model for your SaaS product based on your target market, competition, and perceived value. Regularly review your pricing strategy to ensure it aligns with your business goals and stays competitive.
  • Place – Identify the right distribution channels for your SaaS product. Leverage online marketplaces, integrations with popular platforms, and strategic partnerships to reach your target audience effectively.
  • Promotion – Develop a comprehensive promotional strategy that integrates multiple tactics such as content marketing, social media advertising, and email marketing. Use customer referrals, educational content, low brokerage fees, and targeted online advertising to attract new customers and increase brand awareness.

By leveraging these 4P’s of marketing, you can develop a strong marketing strategy that drives customer engagement, conversion, and retention. Keep in mind that the market and customer preferences are continuously evolving, so it’s essential to monitor your strategy’s effectiveness and adjust it accordingly.

So, if you are a SaaS product owner or marketer, take the time to evaluate your current marketing strategy and make necessary changes based on the 4 P’s framework. Implementing these strategies can help you establish a strong foothold in the market, generate more leads, and increase sales for your SaaS product. Start by focusing on one or two areas of improvement, such as optimizing your pricing strategy or enhancing your promotional tactics, and see how it impacts your business. With continuous improvement and optimization, your SaaS product can reach new heights of success.
Moreover, if you’re planning to use LinkedIn to promote your SaaS product, then do consider using DMTiger. Click here to download DMTiger for free today!

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