SaaS B2B Marketing Tactics (That Actually Generate MRR)

More than 20 years ago, Bill Gates gave a prophecy to the world: "If your business is not on the Internet, then your business will be out of business." 100% accurate in our days. 

In his most recent book, "Choose Your Enemies Wisley," Patrick Bet-David said: "Businesses that don't embrace AI will be out of the game soon." That is a fantastic opportunity for everyone in the SaaS space.

However, the SaaS market is becoming a giant red ocean when competition is leaving less and less market share for those who are just starting. 

The good news for you is that in this blog post, you will learn the top-notch strategies to differentiate your business, get more clients, eat your competitor's lunch, and move from a red ocean to a blue ocean. 

Table of Contents

• From Red Ocean to Blue Ocean

• Deep Dive into Target Audience Understanding

• Automated Email Marketing That Brings MRR

• SaaS Growth Hacking That Generates MMR

• Conclusion

From Red Ocean to Blue Ocean

The SaaS market is estimated to rise to $232 billion by the end of 2024, expected to be the fastest-growing industry by 2030.

According to Colorlib, there are more than 30,000 SaaS companies right now. According to a McKinsey & Company study, only 20% of SaaS companies survive their first five years in business. And 92% of them will fail.

Why do they fail? 

Because a lot of them are in a red ocean where competition is very aggressive and the big fish usually eats the small ones.

Being in a Blue Ocean means less competition and the creation of new market space. It allows businesses to innovate, differentiate, and capture untapped opportunities, fostering growth and profitability with reduced rivalry.

In his book "Playing to Win," expert strategist Roger Martin offers some insights that everyone in the SaaS business should ask if they want to outstand the competition and be part of those 20% of companies that survive. 

Roger invites us to consider two critical questions to win. First, "What is our winning aspiration?" and second, "Where will we play?" 

According to Rand Fishkin, SaaS expert and founder of several successful SaaS businesses, the core goal of every SaaS business is to generate monthly recurring revenue (MRR).

Firstly, addressing the question of "What is our winning aspiration?" is pivotal for a SaaS business. In the context of MRR generation, the winning aspiration should transcend beyond mere financial objectives. 

It involves defining a compelling purpose and vision that motivates the entire organization and allows it to create a difference in the market from day one. 

For a SaaS company aspiring to dominate in MRR, the winning aspiration could be to become a market leader in delivering innovative, reliable, and scalable solutions that consistently add value to customers' businesses.

Let's take beehiiv for example. What is beehiiv’s winning aspiration? To be the #1 newsletter company in the world? That won't help beehiiv at all. Nobody will care about a company that just wants to be #1.

Instead, beehiiv wants to earn its spot in the market and the heart of its users by "helping others succeed by providing a superior suite of content creation tools, advanced data analytics, robust growth engines, end-to-end customization, and monetization opportunities at scale." 

That is a genuine winning aspiration that will be a guiding start in all the company does to drive strategic decisions and actions toward sustainable growth.

Now, let's dive into the second question, "Where will we play?" This question necessitates meticulously analyzing the target market and its specific segments. You will never win if you don't know where you are playing. 

For a SaaS business eyeing MRR, the playing field extends beyond a broad market overview. It involves identifying niche markets or customer segments that align with the unique value proposition of the SaaS solution.

It's about honing in on industries with specific pain points that the SaaS product can address exceptionally well. 

Talking again about Rand Fishkin's startup, SparkToro, it is clear where and against whom they play. In his own words, SparkToro was born "to help marketers forge direct relationships with influencers and ad-supported media outlets, without Facebook or Google brokering the relationship."

They are playing in the market of search engines.

Answering these two questions will lead you to the ideal customer profile and market segments to set the stage for more effective marketing, sales, and customer retention efforts, ultimately contributing to MRR growth.

Instead of throwing ads and money trying to hit anything or anyone, you can laser-focus your efforts on the right things to reach the right people. 

As Seth Godin said: "It’s so much easier to aim for the smallest possible audience, not the largest, to build long-term value among a trusted, delighted tribe, to create work that matters and stands the test of time." Once you find your small audience, you will reach the large one.

Finding your small audience is one important key to moving from a red ocean to a blue ocean. 

In the realm of SaaS, the winning aspiration and playing field are intricately connected. The winning aspiration drives the passion and dedication of the team, while the strategic choice of where to play defines the scope of the battlefield. 

By answering those two questions, your chances of moving from the red ocean to the blue ocean will increase. The bluer your ocean, the higher the chances of winning.

In conclusion, Roger Martin's strategy principles of "What is our winning aspiration?" and "Where will we play?" offer a robust framework for a SaaS business aiming to generate Monthly Recurring Revenue. 

By articulating a compelling winning aspiration and strategically selecting the playing field, a SaaS company can focus its efforts, resources, and innovation on delivering exceptional value to target customers, ultimately leading to sustained MRR growth in the competitive SaaS landscape.

Deep Dive into Target Audience Understanding

Seth Godin's phrase, "Don't find customers for your product. Find products for your customers," encapsulates a profound shift in marketing and business strategy mindset.

Traditionally, businesses adopted a product-centric approach, creating offerings and seeking ways to sell them to a broad audience.  

According to Harvard Business School, "over 30,000 new products are launched into the market every year, of which approximately 80% fail to meet their objectives."

Godin's wisdom challenges this conventional thinking, urging businesses to prioritize the needs and desires of their customers before developing or marketing a product.

Crafting hyper-specific buyer personas is foundational in this pursuit, enabling businesses to create detailed and personalized representations of their ideal customers. 

These personas delve beyond basic demographics, incorporating insights into behaviors, preferences, pain points, and aspirations. 

By honing in on these intricate details, businesses can tailor their marketing strategies with a laser-like focus, ensuring their messaging resonates profoundly with the intended audience because they already want the product.

One powerful tool in the arsenal of understanding the target audience is the conduct of user interviews. 

In the book "The Lean Startup," author Eric Ries shares how he applied user interviews to revolutionize IMVU, employing a Lean Startup approach. Engaging with users gave Ries invaluable insights into their experiences, preferences, and pain points. 

This iterative feedback loop enabled IMVU to refine its virtual reality platform continuously. 

The user-centric interviews were pivotal in shaping product development, ensuring that IMVU's features aligned with user needs.

Ries's approach not only enhanced user satisfaction but also exemplified the effectiveness of customer feedback in fostering innovation and sustained growth within the dynamic tech landscape.

Engaging with users directly provides an opportunity to unravel nuanced preferences, unmet needs, and the emotional factors influencing purchasing decisions. 

By listening actively to the audience's voices, businesses gain a deeper understanding of the human element, allowing for refining products, services, and marketing approaches.

Good ideas and innovation may come from users rather than top executives.

For example, Zappos discovered the idea of allowing customers to try shoes before paying through customer interviews. 

Initially, they faced high return rates. In the book "Delivering Happiness," Author Tony Hsieh says a customer mentioned that trying the shoe before purchasing would be nice.

This suggestion led to the "Pay After Delivery" option. This discovery decreased returns and built trust, ultimately enhancing the customer experience.

The insights gained from crafting hyper-specific buyer personas and conducting user interviews are pivotal in informing marketing strategies. 

Understanding the target audience's pain points empowers businesses to position their products or services as solutions, addressing real needs rather than perceived ones. 

Tailoring marketing messages to align with the aspirations and values of the audience establishes a connection that transcends transactional relationships, fostering brand loyalty and advocacy.

As technology advances, artificial intelligence (AI) emerges as a game-changer in target audience understanding.

SaaS businesses can leverage AI for competitive analysis that amplifies the depth of insights companies can glean about their audience and competitors. 

AI algorithms can sift through vast datasets, identifying behaviors, trends, patterns, and emerging preferences with unprecedented speed and accuracy. Behavior is more significant than words. 

As Shane Parris said: "Don't tell me your priorities. Show me your calendar."

Regarding the best AI software for competitive analysis, several standout options exist. Tools like SEMrush and Ahrefs provide comprehensive insights into competitors' digital marketing strategies.

They uncover valuable data on keywords, backlinks, and search engine rankings, offering a holistic view of the competitive landscape. 

Social listening tools like Brandwatch and Mention use AI to track brand mentions and sentiment analysis across various online platforms, providing a nuanced understanding of customer perceptions and trends.

These AI-powered tools automate the data collection process and offer actionable intelligence, enabling businesses to make informed decisions in real time.

In conclusion, a deep dive into target audience understanding is indispensable to effective marketing strategies. 

Crafting hyper-specific buyer personas, conducting user interviews, and utilizing AI for competitive analysis collectively empower businesses to navigate the complexities of the market landscape. 

The symbiotic relationship between these elements ensures that marketing efforts are targeted and adaptive, positioning businesses to thrive in an environment where customer preferences and competitive dynamics are constantly changing.

Automated Email Marketing That Brings MRR

Quoting Patrick Bet-David on the future of businesses: "Businesses that don't embrace AI will be out of the game soon." The evolution of Email Marketing Automation has become a pivotal force, transforming how businesses engage with their audience.

Email marketing is still the most costly and influential of all the ways you could do marketing in 2024. Hubspot says, "Email marketing wins because it improves the customer experience. Improving the customer experience is the top-two goal for marketers in 2024." 

After you have chosen your winning condition, figured out where you are playing, and had a deep dive into the target audience's understanding, you will be ready to create a personal experience for each person and business you want to grab. 

Talking about SaaS marketing tactics for B2B, Most B2B companies (75%) make it a point to measure how their content is doing, and a whopping 64% believe that measuring email engagement has given them the most valuable insights in the past year.

Email Marketing is a respected and trustworthy option for every person in B2B. 41% cited vendor emails as the source they relied on to make buying decisions.

To understand better how to get more B2B deals, you need to understand the lifecycle of each B2B. 

Lifecycle marketing is grounded in four fundamental pillars, each contributing to its success.

1. Reach & Engage: Attracting and converting new customers.

2. Nurture & Educate: Onboarding and guiding to build trust.

3. Convert & Close: Keeping customers interested and involved with the brand.

4. Support & Grow: Retention strategies to encourage customers to return.

That is a lot of work to do. However, in our modern world, that could be easily leveraged by an AI email marketing software such as beehiiv.

Reach and Engage: 

A SaaS company can leverage the Lean Startup Methodology by swiftly launching a Minimal Viable Product, engaging first users for feedback, measuring key metrics, and iterating based on insights. 

Once they are subscribed to your email list, Provide something of value to your subscribers and be innovative with your offering. Ensure that it aligns with your audience's interests. 

To create an attractive signup form, include captivating graphics and use bold, straightforward language emphasizing the benefits of subscribing.

Extend a warm welcome to your new subscribers by offering a curated introduction rather than overwhelming them with information. 

Share your story, highlight your best-performing content, and outline what they can anticipate from your future communications. It's akin to inviting them to settle in, assuring them that an enjoyable journey awaits.

This approach establishes a more intimate connection, emphasizing the genuine care of real individuals behind the emails regarding their engagement and satisfaction. 

With the convenience of automation, set up your email sequence once, and let beehiiv seamlessly handle the rest.

Using beehiiv can help you analyze vast amounts of data; AI algorithms can understand individual customer preferences, behavior patterns, segmentations, and demographics to reach and engage new customers.

Using AI is like having a big data expert working for you! 

Nurture and Educate: 

90% of all emails end up in the Promotions tab — and only 0.3% of emails make it to the primary tab. That is a huge waste of emails before you land in the primary inbox.

Simply put, you can only nurture and educate if your content reaches your audience. 

AI-based tools, such as beehiiv, can analyze factors that affect deliverability, such as subject lines, email content, and sender reputation.

The beehiiv AI writer can produce well-structured and engaging text by analyzing user inputs, desired outcomes, and relevant data.

It is like having a full-time copywriter working to allow marketers to focus on higher-level strategy, data analysis, and creativity.

Convert & Close:

With AI software such as beehiiv, you can systematically deliver a series of pre-designed emails to new subscribers or users over a specified period. 

This is what is called dynamic email content.

By orchestrating a carefully timed sequence, businesses can guide users through a personalized journey, ensuring a smooth onboarding experience. That is the crucial point: personalization!

A key element in the arsenal of Email Marketing Automation is the utilization of Artificial Intelligence (AI) for Email Personalization. 

In an era where customers crave personalized interactions, AI algorithms analyze vast amounts of data to tailor email content based on individual preferences, behaviors, and demographics.

By understanding the unique needs of each recipient, businesses can create hyper-personalized emails that resonate on a deeper level, fostering a stronger connection between the brand and the audience.

This boosts engagement and significantly increases the likelihood of conversion, as customers are more likely to respond positively to content that aligns with their interests.

Implementing Behavioral Triggers in Email Campaigns adds another layer of sophistication to Email Marketing Automation. 

By leveraging user behaviors, such as website visits, clicks, and purchases, businesses can design campaigns that respond dynamically to individual actions. 

For instance, if a subscriber abandons their cart on your website, send them an email reminder with dynamic content that shows the items left in their cart and encourages them to complete the purchase. 

This can help recover lost sales and increase revenue. Here are five examples you can use to resend emails to re-engage customers.

These behavioral triggers enhance the emails' relevance and create a sense of timeliness and urgency, encouraging users to take desired actions promptly. 

This level of responsiveness is instrumental in driving conversions and maximizing the overall effectiveness of email marketing efforts.

Support & Grow:

Do you remember the primary goal of every SaaS? It is to Create a profitable recurring revenue model. This means you will make a profit on recurrent subscriptions.

AI-powered email marketing is a potent tool for customer retention aimed at ensuring sustained engagement and repeat business. 

Businesses can leverage customer data through sophisticated algorithms to deliver highly personalized content, such as tailored offers or product recommendations based on individual purchase history and behavior. 

Automated follow-up emails or messages express appreciation for past interactions and seek valuable feedback, creating a two-way communication channel. 

This personalized outreach demonstrates a commitment to customer satisfaction and provides an opportunity to offer support or address concerns.

In addition, AI can play a pivotal role in the retention strategy by deploying surveys or feedback mechanisms within emails. 

These tools gather valuable insights into customer preferences, pain points, and overall satisfaction, enabling businesses to refine their offerings and enhance the overall customer experience. 

By utilizing AI in email marketing for retention, businesses can create a seamless and personalized communication strategy that keeps customers returning for more and strengthens the brand-customer relationship over time.

SaaS Growth Hacking That Generates MMR

The initial thought of every SaaS marketing department is to go with paid ads. 

After using FB, IG, TikTok, and YT ads for seven different SaaS companies over five years, doing paid ads can work well. However, this strategy is a cash-burning machine.

If you have the resources, you can learn from Agora Financial how they have built nine-figure companies and copy their paid ad strategies for growth.

However, if you are just starting or don't have enough resources to compete in the saturated world of social media ads, I won't recommend spending most of your budget on paid ads. 

Instead, you can use growth hacking tactics to boost your SaaS B2B sales. 

Growth Hack Strategy #1 - Show Authority in Your Industry

Deploying a pivotal growth marketing strategy, content marketing proves indispensable in achieving business objectives. 

In the realm of SaaS, the profound impact of content marketing becomes evident. Content marketers within the SaaS domain aspire to captivate, involve, and convert website visitors into leads. 

Despite its apparent simplicity, content curation remains a challenge for many SaaS companies, especially when tailoring content for distinct stages of the buyer journey. 

Questions surrounding audience engagement, tonal accuracy, and optimal distribution platforms persist. 

A targeted content marketing strategy is imperative to ensure a meaningful impact, enabling SaaS entities to distinguish themselves amidst market competition.

beehiiv is solidifying its position as an authority in email marketing software by strategically crafting content explicitly tailored for email marketers.  

By addressing the unique challenges, innovations, and evolving strategies within the field, beehiiv's content becomes a trusted reference for email marketers seeking guidance. 

Creating informative blog posts such as this one, in-depth guides, and engaging multimedia content showcases beehiiv's dedication to empowering email marketers with the knowledge and tools needed to excel in their business. 

Read this blog to learn more about how beehiiv has used this growth hack strategy.

Growth Hack Strategy #2 - Month-to-Month

Dropbox is the best case study regarding growth marketing strategies. They used the best marketing tool ever created: month-to-month.

Dropbox has successfully utilized a referral program to attract more users by offering additional cloud space as an incentive. 

The strategy is simple yet effective: existing users are encouraged to refer friends to Dropbox, and for each successful referral, the referrer and the new user receive extra cloud storage. 

This creates a win-win situation, fostering organic growth through word-of-mouth marketing. 

By tapping into the power of viral loops, Dropbox turns its user base into advocates, leveraging the principle that satisfied customers become brand ambassadors. 

This approach attracts new users and reinforces loyalty among the existing user community, contributing to Dropbox's sustained success.

Now, many SaaS businesses offer free trials, and they think that is what will bring massive numbers of people. Wrong!

Have you thought about giving premium features as part of the rewards? When doing right, you can, as Dropbox did, boost virality and increase loyalty. 

Growth Hack Strategy #3 - Partnership Marketing

While referral marketing is effective for brand recognition, relying solely on word-of-mouth can be unpredictable without a viral coefficient. 

Given the intangible nature of these products, a departure from traditional marketing is essential. 

Successful influencer marketing involves identifying industry leaders and niche influencers who can authentically endorse your SaaS offering.

Aligning the influencer with your product and marketing objectives is crucial. 47.3% of all creators are micro-influencers, the largest group among all tiers. Meanwhile, celebrities, macro, and mega-influencers account for only 0.5-6.5% of all content creators.

This strategic shift ensures a targeted approach, enhancing the impact of your influencer marketing efforts.

An excellent example of effective partnership marketing was made by Audible a few years ago.

In a collaborative effort, Audible partnered with photographer Jesse Driftwood, whose Instagram following numbered less than 100K. 

Rather than delivering a conventional sales pitch for Audible, Jesse opted for a more personal approach, sharing his firsthand experience of how using Audible contributed to his productivity. 

The post resonated strongly, amassing over 10,000 likes and 300 comments, indicative of an impressive 30% engagement rate. 

This campaign highlighted the effectiveness of authentic storytelling over a traditional promotional strategy, demonstrating the power of genuine endorsements from influencers with a genuine connection to the product.

Conclusion

Implementing growth marketing strategies and tactics to your B2B marketing efforts will pay off.

If you want to measure every detail and crucial metrics for your campaigns, use beehiiv 3D analytics tools. 

Get a 30-day free trial and make the most of your email marketing tactics.