Is "SaaS Marketing" really any different than plain old marketing?

I'd been marketing technology since the days of the mini-computer, so when several years ago I took on the challenge of marketing a software-as-a-service (SaaS) solution, I thought, "How different can this possibly be?"

Both SaaS and on-premise applications share similar marketing objectives: generate qualified leads, establish positive visibility in the market, and support the sales effort with effective tools.

And the tactics used to market SaaS solutions are familiar to anyone who's been marketing on-premise technology solutions. It's the same mix of events, PR, collateral, web site, search engine optimization, webinars, direct marketing, and other programs we know and love. Of course, SaaS marketers need to be especially careful that their campaigns are cost-effective, but the basic programs are the same.

However, despite the fact that the objectives and tactics are similar to marketing on-premise applications, , marketing SaaS solutions requires a different strategy. It targets different audiences, it presents different messages, and it requires different processes.

Different Messages
For a SaaS solution, the message needs to articulate the value of the full customer experience and isn't confined to just product features. It includes benefits like "easy to purchase and deploy," "guaranteed uptime," and "secure."

The message also needs to convey the promise of what is to be delivered in the future. The customer isn't just buying what's in the solution today. They're committing to a stream of enhancements to be delivered over the entire term of their subscription. SaaS marketers shouldn't be hesitant about revealing the product road map.

Different Audiences
For SaaS solutions, the target audiences - the people involved in the purchase decision - are often different from those involved in an on-premise solution sale. During the sales process, in addition to reaching the functional buyer for the application (e.g. HR, finance, manufacturing), SaaS marketers need to address the security and performance concerns of the CIO and the IT team, and they need to educate the legal and procurement people who may be unfamiliar with SaaS contracts and service level agreements.

Importantly, SaaS marketers need to maintain the commitment of existing customers in order to secure renewals. In the world of on-premise solutions, marketers usually focus on prospective customers, not ones who already own the product.

Different Processes
SaaS solutions are often enhanced much more frequently than on-premise solutions, and marketing needs to work on a different timetable to stay in sync. In many cases, SaaS solutions require a marketing process geared for new releases every quarter, not once every two years.

To succeed, companies that are marketing SaaS solutions need to recognize and adjust to these strategic changes. We'll continue to deploy similar marketing programs, but our tactics will need to be re-oriented to deliver a different message to different audiences according to a different schedule.


Peter A. Cohen is managing partner of SaaS Marketing Strategy Advisors, an advisory-services firm guiding companies on marketing SaaS solutions to enterprises. He can be reached at peter.cohen@saasmarketingstrategy.com.