How to Pick the Right B2B SaaS Lead Gen Tactics

I’ve worked with many B2B SaaS companies over the past 16 years and have tested many different lead generation approaches. It turns out, not every SaaS model is the same and each one requires a different set of tactics for success. 

How I Categorize the 3 Types of B2B SaaS

• SaaS Only
• SaaS + Customization
• SaaS + Consulting

Here’s my deep dive on some of the best tactics for each of the 3 categories.

Category 1: SaaS Only 

Definition: This type of SaaS offers one core product. It will often include different feature sets at different price points and some configuration capability. However, it does not offer customization. It is designed to be primarily self-serve. It may have a freemium version. Ideally, the buying process is self-serve throughout most or all of the sales cycle. This model is highly scalable and generates profitable revenue that comes 100% from software subscriptions.

Healthy Lead Flow: Volume is the key to SaaS Only lead generation (especially if there is a freemium model). If you don’t have a way to generate massive lead flow, your business model will fail. It’s OK and expected that many of these leads will choose a free option and most will never become paying customers. But at least you have them in the pipeline to retarget for upgrades later and to build your brand reputation through social proof for those who will upgrade to paid versions.

Top Lead Generation Tactics

• Organic SEO - SaaS Only is a long term play and requires a lead gen system that will gain momentum over time. Organic SEO for this type of business should be geared towards driving maximum TRAFFIC and not just visibility. A good SaaS only website will be designed with triggers to prompt signups AND some kind of email subscription mechanism for ongoing lead nurture. Conversions, conversions, conversions.
• Paid SEO - You want to win the PPC game because it is fast, repeatable, and often scalable. You should bid on search terms around the problem/solution but also include the brand names of all your top competitors. SaaS companies should expect to spend 10-15% of revenue on marketing and some fast growing firms may spend up to 50% of their OPEX on marketing/sales.
• Content Marketing - This is appropriate but you should focus on creating and distributing ungated content that is highly shareable. You want as many people as possible using as much of your content as possible. 

Who is heading up the marketing strategy at your B2B SaaS company? Here's why you should get someone in that role sooner rather than later.

Category 2: SaaS + Customization 

Definition: This type of SaaS has a main product that contains most of the features and functions the majority of customers use. However, it requires customization around setup, development of specific functionality, integrations, etc. It typically has an onboarding cost in addition to the subscription for the software. The goal is to commercialize each additional custom feature and roll it out to more customers to recoup the money spent on this development effort. The scalable, profitable revenue still comes from the software itself. Onboarding fees are primarily intended to cover costs.

Healthy Lead Flow: Consistency is the key to SaaS + Customization lead generation. Target by specific verticals or industries so you are most likely to be able to rinse/repeat and reduce customization to decrease costs and improve profit margins. Trying to go too broad with your targeting will lead to overspending on custom development for every single new client and will eat away at your profitability.

Top Lead Generation Tactics

• Search Intent PPC - Google Ads works in this type of SaaS if there is an affordable keyword opportunity. You will also want to do ad retargeting paired with ongoing high-touch outreach from Sales. This is because the buying cycle is often longer in this category vs. in SaaS Only and people tend to go with “no decision” instead of solving their problem. Staying top of mind is the name of the game.
• Co-sponsored Education - This is often a strong move. For example, you can leverage your integration partners to reach a larger audience with a live webinar or other event. This approach helps you reduce costs for lead gen while delivering high value to your partners’ ecosystems.
• Positioning on Review Sites - Platforms like G2 and TrustRadius may be good places to generate leads. That’s because there is a higher barrier to entry for SaaS + Customization compared to SaaS Only and a freemium version is often not available that would allow people to “Try before they buy”. This means prospects will be doing more in-depth research to validate your product. Review sites can be a good place to position your brand in the consideration stage, especially if you have initial customers who are happy to provide testimonials.
• Events and Conferences - Participating in events where there is a high concentration of your target decision makers CAN be worthwhile. However, your messaging MUST be on target along with your pre and post-show marketing and booth choreography for this method to deliver ROI.

Conferences and trade shows aren't the only places that B2B companies are leaking marketing dollars. Uncover more money wasters in this episode of The Marketing Blender show.

Category 3: SaaS + Consulting 

Definition: In this category, high ticket consulting around digital transformation and workflows, etc. are wrapped around the SaaS product. The SaaS subscriptions generate recurring, profitable revenue, but the big wins and the highest profit margins are tied to the consulting piece. Sales and Marketing may be using the SaaS product as the “hook” to land customers for the consulting engagements.

Healthy Lead Flow: Quality is the key to lead generation for SaaS + Consulting. Because the sales process is high touch and costs you time and opportunity, you want highly qualified leads coming into the pipeline while actively discouraging tire kickers.

Top Lead Generation Tactics

• Gated Content - It is worth the cost and effort to create very high value content and gate it for lead generation. This is because you need highly motivated buyers who are willing to cough up their info in order to solve an urgent, expensive problem.
• Speaking Engagements - Since consulting solutions are usually directed at challenging and complex problems that require the client/prospect to be educated, getting in front of a room to establish your authority is a top tactic. It motivates people to move through the buying cycle faster than any other lead gen method.
• Referral Marketing - Because these are high-ticket engagements, many of your best leads should come through cultivating your referral network and your existing clients to make introductions. You may even find yourself marketing primarily to your referral network if your key decision makers are hard to reach.

For more strategic advice on B2B Marketing, check out the Corporate Caffeine book from Dacia Coffey (available now on Amazon).

Want to learn more about how to market your B2B SaaS for maximum ROI? Contact me today!