Digital marketing
A SaaS company’s growth is built on systematically increasing ARR (annual recurring revenue). Let us go through what is distinctive about SaaS digital marketing and what works.
In brief
- A SaaS media budget is 10–30 % of ARR.
- PLG (product-led growth) versus SLG (sales-led growth) — different channel strategies.
- LinkedIn is the number one channel for B2B SaaS.
- Content marketing is the cheapest source of leads over the long term.
- CAC target: under three months of the customer’s annual price.
The best channels
For acquiring B2B leads.
Content marketing
Blog, videos and guides — it creates the demand.
Google Ads
Branded search and competitor searches.
Meta
For recruitment and employer brand rather than customer acquisition.
PLG versus SLG: two entirely different strategies
PLG (product-led): a free trial, self-service, a small sales team.
SLG (sales-led): demo-driven, large deal sizes, a large sales team.
PLG works at pricing under €100/month.
SLG works at pricing over €1,000/month.
Retention optimisation in SaaS
Onboarding is retention’s number one factor: good onboarding doubles retention.
Email automations at the 30, 60, 90 and 365 day marks.
In-app messages give an easy channel for guiding the user.
Frequently asked questions
What is a good LTV/CAC for SaaS?
3:1 is the minimum, 5:1 is good, 8:1 is excellent.
How much should a SaaS company spend on marketing?
In the early stage 40–60 % of revenue. Once scaling, 20–30 %.
Why does churn matter so much in SaaS?
5 % monthly churn equals 46 % a year. Retention is what decides SaaS success.
Worth a look too
Read these related articles and service pages too:
External sources:
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