Lead Generation
For SAAS
Companies
For SAAS
Companies
SAAS (Software as a Service)
SAAS (Software as a Service) based solutions have been gaining popularity lately as buyers move away from complicated, time & resource consuming implementations. Popularity for SAAS products can be largely put down to the following factors:
Lower upfront cost (pay as you go).
Quicker setup or deployment.
Flexibility in picking relevant features & modules.
While SAAS products have gained popularity, SAAS businesses in India, especially the ones catering to small and medium scale enterprises have found it difficult to scale operations sustainably compared to similar organizations globally. On close examination, we found that Online lead generation for B2B SAAS businesses is not as effective in India. Such businesses globally rely on a set pattern of using online channels for SAAS lead generation, free trial on signup, driving early usage during trial eventually following it up with a demo of the paid product for heavy users.
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B2B Sales Lead Generation using LinkedIn
While this has worked well in western geographies, the same funnel hasn’t worked well with Indian buyers for the following reasons:
Online leads do not capture the user of the product
Unique to India in some ways, is the phenomenon that the person searching for the product is usually not the primary or even secondary user of the product. Very often on evaluating lead generation for SAAS companies, we realized a junior person on the client side is tasked with finding & evaluating options for the said need in the organization. While this still is an entry into the organizations of appointment setting services, you are then required to traverse the entire buying hierarchy like traditional businesses. Also, the person doesn’t usually end up using the trial/demo as desired.
Online campaigns are evaluated on the wrong metrics
Online campaigns are usually outsourced to digital agencies following traditional metrics like cost per impression, cost per click or cost per lead. These outsourced lead generation companies start such campaigns typically with a well defined audience & messaging, these are usually diluted to improve click through rates or cost per lead/click numbers. This invariably leads to click baity ads( videos & discounts would be the most common suggestions from your digital agency) which result in more leads but significantly deteriorate lead quality. Existing evaluation metrics do not work well for B2B SAAS lead generation.
Buyers are not as comfortable with DIY tools
Another unique aspect of SAAS products globally is the ability of the user to configure the product for themselves and take it for a spin to experience the product. In India B2B sales funnels, we see a huge drop off at this point- from registrations to usage. Why could this be? On talking to several users who’d signed up but not used the product we came across three major buckets:
The person evaluating was not the primary user and was only looking for prices to pass it forward. The person had no incentive to try the product and explore the features; in fact in several cases the person was just a commercial buyer who hadn’t used similar products in the past.
Several B2B SAAS products out of India do not have a seamless freemium product experience. In fact an unusually large number of SAAS companies do not even have a freemium offering!
Recurring online payments has still not found traction in Indian Businesses
SAAS businesses globally rely on recurring online payments. In India however, recurring online payments haven’t gained traction in businesses. This has led to Indian SAAS business insisting on upfront payment for a year or six months thus nullifying their inherent advantage of being a pay-as-you- go model.
Some of these challenges will take time to overcome as buyer’s mature. There are, however, enough opportunities for SAAS based businesses to improve their B2B sales funnel.
Recommendations for SAAS based B2B Businesses
Some of these challenges will take time to overcome as buyer’s mature. There are, however, enough opportunities for SAAS based businesses to improve their B2B sales funnel.
Invest in and measure free trials & freemium models
For SAAS businesses, it is imperative to have a freemium model that will induce trials. Indian SAAS companies however have largely not leveraged this in their go to market approach and specifically for lead generation. If you are a SAAS based solution, the first thing you should do is create a seamless freemium experience for b2b lead generation.
Build a strong ‘middle’ of the sales funnel and measure it closely
Successful saas lead gen typically exhibit a unique sales funnel. The top of the funnel in saas lead generation is usually very broad. These stages of b2b lead generation typically have a high drop rate and a short duration of time; clients are qualifying products at this stage based on features, pricing etc. and select a few products that best suit them. The middle of the funnel is the most important and requires the most effort in saas lead gen. Clients have typically shortlisted products based on their criteria and are evaluating which of the shortlisted products can best fit their needs. Most deals are lost or won at this stage. The bottom of the funnel is more transactional and mostly revolves around commercial negotiations, implementation timelines etc. Companies usually have clear guidelines on handling these conversations. To move the needle in saas lead gen, one must work towards building a strong middle of the sales funnel.
Online B2B lead generation using LinkedIn and other similar platforms
Saas lead generation using platforms like LinkedIn have shown great results for companies. Unlike online advertisements, these channels allow you to conduct targeted b2b lead generation with the buyer profile that is most likely to buy your product. It also provides you with a much better platform to present your product with lesser restrictions around word count and type of content. Social selling on platforms like LinkedIn has proven to be the most effective channel in saas lead gen from a conversion standpoint.
Create a strong SDR process to nurture leads from b2b saas lead generation
lead genration needs to be supported with a strong SDR process. This is typically a combination of two things. First, one must have a well designed sales sequence based on how the client is interacting with the platform. For example, one could nudge a client to set up a call with a sales rep if she has visited the pricing page. Such well designed interventions help move the client further down the sales funnel.
Second, the SDR process in b2b saas lead generation must ensure that the client has a smooth first interaction with the product. SDR teams play a critical role in ensuring that client issues are resolved promptly and they are able to try the product without much hassles.
At SDI, we generate B2B leads globally exclusively using social selling on platforms like Linkedin. If you are at a stage where you’d like to explore B2B lead generation for SAAS products, you can find out more about our services here.
Frequently Asked Questions
1. What are the channels for b2b saas lead generation?
Unlike B2C companies, B2B saas based businesses have relatively limited options when it comes to lead generation. B2B SAAS based lead generation can be broadly categorized into online and offline.
Offline channels for B2B include participation in industry conferences, meetups and publications in industry journals or mailers to industry associations.
Google ad-spend has been the most popular online medium for this. However, some businesses, especially ones targeting SMEs and retail clients also find other social platforms like facebook, instagram etc. useful. Linkedin is the preferred platform for enterprise lead generation. There are various ways you can generate leads on Linkedin including ads, sales navigator, inmails etc. Online channels also include using industry databases for cold calling & emailing.
2. How do you generate SaaS leads?
We’ve executed and evaluated most of the above mentioned channels for B2B lead generation. In our experience, platforms like Linkedin provides the most reliable, scalable and cost effective way to generate B2B leads consistently.
3. What sort of leads can I expect through outbound lead generation for saas companies? How would it compare to my inbound leads?
Our b2b appointment setting services and its campaigns are conducted by clearly identifying your target audience. For example, if you are an organisation providing financial solutions, you might want to target CFO or VP finance profiles from large companies, say with more than 1000 employees or with a certain revenue. You might also have a certain industry focus based on your existing clients: for eg. Consumer goods, ecommerce etc.
Through outbound lead generation you can ensure that you have conversations only with people specified in your target market. With these parameters you can be sure that you are talking to the right people in the right organisations. Before you speak, the prospect has also had a chance to glance through your offering. Her willingness to speak after having done so indicates a high degree of interest. One caveat though: Outbound lead generation does not assure buy ready leads looking for immediate purchase. They might well be in their initial stages of purchasing with the actual purchase happening a few days or even weeks later. We’ve explored this topic in detail here..
4. How is lead generation for SAAS different?
It varies slightly from conventional lead generation in two primary ways. One, since the offering is usually cloud based, buyers are more likely to explore it over a video call through a demo rather than a physical meeting. Secondly, given that most SAAS companies usually have a premium model, it is easier to get the prospect to try out the offering themselves.
These two differences provide a significant advantage to saas businesses when it comes to outbound lead generation. We typically see SAAS businesses perform 20-30% better in outbound lead generation than their conventional counterparts.
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