SaaS applications have a daunting task every day. First is the struggle to get leads. The struggle then graduates to qualify the leads. The leads are no good if they do not convert into paying customers. Paying customers can churn, and then a new struggle begins to bring them back. In a nutshell, drip marketing is the only possible way to overcome these challenges automatically.Why, sometimes I've believed as many as six impossible things before breakfast. Lewis Carroll Click To Tweet
Active and Passive Leads
For SaaS companies, Leads can be active or passive. Active leads come from search engines where prospective customers are intentionally searching for a product like yours. Passive leads come from other outreach programs like ad placements, events, sponsorships, and the likes of. Make no mistake, both active and passive leads are important for you.
Active leads will be considering your competition and evaluating your product with a few others. So conversion is challenging. While passive leads are not actively considering buy in for your product, they can be motivated to convert without allowing a competitive evaluation.
Unlike enterprise sales model where software companies work on few leads and spend lots of time and money to pursue those leads, SaaS products work on a very high volume of leads. SaaS companies do not meet the prospects, do not engage in on-site demos, customer budget evaluations, customer timelines validation, and other traditional sales strategies.
For SaaS companies, everything is online and remote. So the most critical customer touch point for such non-traditional sales is email. With huge volumes of leads and extremely low sales ticket size per customer, automating and optimizing customer acquisition is the most important factor for SaaS companies to focus on.
A quote from an interview with the head of a growing company. Journalist asks:
– So how many employees are working in your company?
– Approximately half of them…
TrustRadius conducted a research to identify the factors that most affect B2B buyers. You will clearly identify that the traditional parameters are fast diminishing.
No doubt, the most trusted factor today is the way SaaS companies offer a no obligation free trial to the leads. In offering an involuntary free trial, your product quality is exposed before a sale. So inferior products will witness a customer rejection in the first 5 mins of their evaluation.A software that offers a “Contact for Demo” instead of a Free Trial needs to be outright rejected. Click To Tweet
Leads may reject your software for various reasons. Rejection can come even for good quality software. Prospects can reject a SaaS software for the following reasons:
So how do you ascertain to reduce your customer rejection rate? While you need to take care of your Feature and Functionality design, easier Setup and better UI, drip campaigns can solve the other challenges.
You can create a useful and automated customer welcome sequence using drip email marketing, or even drip SMS or Drip push campaigns. Create automated drip campaigns to attract those leads who appear to have lower self-motivation. You can also use drip campaigns to provide a time delayed drip sequence of emails to educate your leads on your software usage.
Why do you need Drip Marketing?
You may consider sending one email blast with all the possible information to your leads. The higher possibility is that you will overwhelm your lead with so much information in one shot, your leads will just ignore your email, your leads will soon forget even your brand name.
With drip marketing, you can send snack size bits for useful information, in a time delayed sequence of emails. So, if your leads missed reading one email, you have 7 more chances that they will read your other emails in sequence. Read How to increase email open rates.
Sample Drip Campaign to Improve New Customer Welcome
1. Send a Welcome email 5 minutes after signup. Read more on better welcome emails.
2. Send your 2nd Welcome email after 2 days to talk about the 3 most creative features or uses of your product.
3. Send your 3rd Welcome email after 3 more days to showcase top 3 user reviews.
Sample Drip Campaign to provide usage assistance
1. Send your first help file on “How to Start” 5 mins after signup.
2. Send your 2nd help file on how to set up a particular feature 2 days after signup.
3. Send your 3rd help file on how to set up another feature after 3 more days.
Components of your Drip Marketing Design
Always include these critical components in your drip marketing design. Timing and sequence will depend on your market and offering but do include them.
- Problem Statement. You may be solving more than 1 problem statement for your customers. Identify them and use them in your drip emails along with a link to an article on how your product solves the problem.
- Good Customer Reviews: Share genuine customer reviews with links from software discovery platforms like Capterra, Getapp , Siftery, Product Hunt, Maqtoob, G2Crowd, and others.
- Purchase Reminder: Do not assume that the lead will convert by themselves. Include a gentle reminder of their trial validity and a purchase request.
You can use a combination of the above scenarios to create a customer onboarding drip sequence. Monitor your open and click rates of every drip campaign and continue to make improvements.
If you have a 15 days trial period, send an “Upgrade Reminder” email on the 12th day with sufficient time to upgrade. If your lead does not convert after 15 days, consider sending a Discount Coupon on the 17th day.
Keep in touch with your leads by sharing weekly newsletters to share your best content or even the best-curated content.