Demand generation is one of the key areas SaaS companies must focus on to build a consistent sales pipeline.
Why?
Well, because SaaS demand generation ensures that you’ll:
- Create and perpetuate interest in your product offering.
- Build lasting relationships with potential leads by educating and nurturing them.
- Fill your funnel with qualified leads prepped up for sales to take over.
Sounds good, right?
However, building a strong SaaS demand generation strategy can be challenging, especially if you’ve never done it before.
In this detailed guide, we’ll explain all the SaaS demand generation essentials, helping you understand what you need to do—and how—to craft an efficient and resilient SaaS demand generation strategy.
What is SaaS demand generation?
So, what is SaaS demand generation in the first place?
Demand generation for SaaS is the process of creating awareness, interest, and desire for a software product throughout the buyer's journey.
Therefore, this strategy focuses on:
- Driving interest among your target audience.
- Nurturing them over time.
- Getting them to a point where they are ready to convert into paying customers.
Also, due to the subscription-based nature of SaaS offerings, SaaS demand generation often emphasizes ongoing engagement, as the need to build strong and lasting relationships is more prominent than with traditional product sales.
This point underscores the importance of having a well-structured demand generation strategy if you’re a SaaS company. Namely, generating sustainable interest and demand for your product is critical to long-term business growth and customer acquisition.
And since SaaS businesses rely heavily on scalability, creating consistent demand is essential for staying competitive and continuing to grow.
That’s exactly what having a solid demand generation strategy enables SaaS companies to do, as it helps:
- Attract quality leads.
- Nurture them consistently and effectively, building trust and brand loyalty.
- Increase the likelihood of conversion.
- Retain customers more efficiently.
How demand generation differs from lead generation
The definition of SaaS demand generation might make you wonder how exactly it differs from lead generation, especially as the terms are often used interchangeably.
However, they actually serve significantly different purposes, making them distinct - yet complementary - marketing strategies in the SaaS space.
Demand generation encompasses creating awareness and nurturing potential customers through various stages of the sales funnel.
It's all about creating demand for a product, regardless of whether or not a direct lead is immediately generated.
Lead generation, on the other hand, focuses specifically on capturing potential customers' contact information, usually after they’ve shown interest in the product.
This typically occurs once demand has been generated and prospects have engaged with some form of content, like signing up for a webinar or downloading an eBook.
So, although they’re two entirely different marketing approaches, demand generation and lead generation are closely related, as one helps boost the efficiency of the other.
Demand generation helps create a strong foundation of awareness and interest, making it easier to convert leads later, whereas lead generation focuses on harnessing the interest created by demand generation, aiming to turn engaged prospects into actionable leads ready for the sales team.
B2B SaaS demand generation vs. B2C
It’s important to note that SaaS demand generation strategies and approaches differ depending on whether you have a B2B or a B2C business model.
In B2B SaaS, the sales cycle is typically much longer and more complex, as B2B purchasing decisions often involve multiple stakeholders, all of which must be convinced of the product’s value.
As a result, demand generation in this space focuses heavily on personalized and educational content that informs and guides these stakeholders through the decision-making process.
Therefore, common tools for nurturing B2B prospects over time include whitepapers, case studies, in-depth product demos, webinars, and ABM.
On the other hand, B2C SaaS demand generation has a much shorter sales cycle, as decisions are usually made by individual consumers or small teams, which means that B2C demand generation must capture attention and build trust quickly.
Consequently, B2C demand generation content is often more streamlined, focusing on product benefits, convenience, ease of use, or entertainment and highlighting how the product improves the consumer’s personal life.
Tactics like freemium models, limited-time offers, tutorial videos, social proof, and social media engagement are usually most effective in moving consumers quickly from awareness to purchase.
Why is demand generation crucial for SaaS companies?
In case you’re still wondering whether you should invest in demand generation, here are some of the key reasons why you should most definitely include demand generation in your sales and marketing efforts.
For SaaS companies, demand generation goes beyond simply filling the sales funnel with leads.
It focuses on building awareness, trust, and authority within the target audience, which is essential in a highly competitive digital market.
Namely, in the SaaS business model, which often relies on subscription renewals and upsells, retaining existing customers is as crucial as acquiring new ones, if not more so.
This means that customers need to be continually reminded of the value they are receiving, which is exactly what demand generation enables you to do.
On the one hand, demand generation helps you differentiate yourself from the competition and position yourself as indispensable to your audience by:
- Educating potential customers about your product’s benefits.
- Addressing their pain points.
- Highlighting your software’s unique value proposition.
On the other, it helps with driving loyalty and reducing the risk of churn by:
- Maintaining continuous communication with customers through personalized content and social media engagement.
- Providing how-to videos, product tutorials, rich resource centers, and customer success content that helps users get the most out of the product.
Finally, demand generation helps you keep leads and customers satisfied and engaged throughout the buying cycle.
As a result, it makes it more likely for customers to become brand advocates and refer your product to their peers, which can lead to additional organic growth.
Key components of a SaaS demand generation strategy
A successful SaaS demand generation strategy integrates various marketing techniques to create awareness, generate interest, and guide prospects through the sales funnel, including the following:
1. Content marketing
No demand generation strategy can be complete without content marketing, and the same goes for SaaS.
SaaS products often solve complex problems - such as accounting automation or financial risk assessment - and customers need to be educated on how the software can benefit them.
A well-executed content marketing strategy involves creating informative, valuable content that addresses pain points, demonstrates product value, and nurtures prospects throughout their buyer’s journey.
Types of content that are highly effective in SaaS demand generation include:
- Blog posts to drive organic traffic through SEO and educate prospects.
- Whitepapers and eBooks to offer in-depth solutions and capture leads.
- Case studies that showcase customer success stories.
- Webinars and video tutorials that explain product features and use cases.
For best results, each piece of content should align with different sales funnel stages and provide value that leads prospects one step closer to conversion.
2. SEO
SEO is essential for driving organic traffic to a SaaS website.
SaaS buyers usually begin their journey with a search engine query, so it's crucial to ensure that your content ranks highly for relevant keywords.
Therefore, efficient SaaS demand generation requires:
- Keyword research to identify high-value search terms related to your product and industry.
- Optimizing website pages, blogs, and other content for short and long-tail keywords.
- Implementing on-page SEO best practices, such as optimizing meta tags, headers, and content structure.
- Building backlinks through partnerships, guest blogging, and high-authority publications.
Moreover, consistent SEO efforts can save you money, as you won’t have to rely as heavily on paid advertising to get a steady stream of qualified prospects.
Pro tip: Use a website visitor identification tool like Warmly to capitalize on both organic and paid website traffic.
This way, you’ll know exactly who’s visiting your website, how they interact with it, and how interested they are in your product.
3. Paid advertising and PPC
While organic search is important, paid advertising can speed up your demand generation efforts by providing immediate visibility.
PPC campaigns on platforms like Google, LinkedIn, and Facebook enable SaaS companies to target specific audiences based on intent, demographics, and behaviors.
Some of the best ways to use paid advertising for optimal results include:
- Creating targeted ads based on buyer personas.
- Running retargeting campaigns to engage visitors who have interacted with your site but haven't yet converted.
- A/B testing ads and landing pages to optimize conversion rates.
4. Social media engagement
Social media offers SaaS companies an opportunity to build brand awareness, engage with prospects, and drive traffic.
Platforms like LinkedIn, Twitter, and Facebook provide channels for distributing content, connecting with industry influencers, and interacting with potential customers.
To engage your prospects on social media, focus on:
- Sharing thought leadership content that positions your brand as an industry expert.
- Engaging with followers through polls, Q&A sessions, and discussions.
- Leveraging paid social ads to target specific demographics and interest groups.
5. Email marketing
Email marketing remains one of the most effective ways to nurture leads and guide them toward conversion, and SaaS is no different.
In a SaaS demand generation strategy, email campaigns should be highly personalized and segmented based on prospects' stages of the buyer’s journey.
Effective email marketing includes:
- Drip campaigns that gradually educate and build trust with potential customers.
- Product announcements to highlight new features or updates.
- Personalized offers and discounts based on user behavior and engagement.
- Onboarding emails that guide new customers through product setup and early usage.
6. Account-based marketing
ABM focuses on creating highly personalized marketing and sales strategies for specific companies or decision-makers, making it essential for doing SaaS demand generation right.
Key elements of ABM include:
- Developing customized content that addresses the unique needs of each target account.
- Coordinating efforts between marketing and sales to create a seamless approach.
- Using personalized outreach, such as tailored email campaigns, direct mail, or customized product demos.
Moreover, ABM enables you to focus resources on accounts with the highest potential for long-term value, helping you save time and money otherwise wasted on low-value accounts.
How to create a high-converting SaaS demand generation funnel?
Having a well-structured demand generation funnel helps SaaS businesses attract qualified prospects, nurture them with valuable content, and ultimately convert them into paying customers.
Let’s explore some of the key tactics to apply in each funnel stage:
1. Top-of-Funnel (TOFU): Building awareness
At the top of the funnel, the goal is to attract a broad audience and create awareness of your SaaS product.
The top-of-funnel stage is all about attracting visitors, creating awareness of your SaaS product, and piquing your audience’s interest to set up the foundation for further engagement.
To achieve this, focus on educating potential customers about their challenges and explaining how your product can help solve them.
Several tactics work best in this stage, including:
- Content marketing - Publish blog posts, how-to guides, and explainer videos that address common pain points in your industry.
- SEO - Ensure that your content ranks for relevant keywords to increase visibility in search engines.
- Paid ads and PPC - Use Google Ads, LinkedIn, and Facebook to target specific personas likely to be interested in your product.
- Free trials and freemiums - Offer a free trial or a freemium version of your product to allow prospects to experience the value of your SaaS firsthand.
2. Middle-of-Funnel (MOFU): Nurturing leads
The middle of the funnel is about building relationships and positioning your SaaS product as the ideal solution.
Namely, once prospects know about your product, the middle of the funnel focuses on nurturing those leads and guiding them closer to a purchasing decision.
At this stage, prospects evaluate your product’s features and compare it to competitors.
So, the key is to provide deeper, more detailed content that builds trust and educates leads on why your SaaS solution best fits their needs.
Effective MOFU tactics include:
- Webinars and case studies - Offer in-depth webinars, product demos, and case studies that showcase real-world use cases and customer success stories.
- Email campaigns - Use automated email sequences to deliver personalized content to leads based on their behavior and interests.
- Product comparisons and whitepapers - Provide detailed whitepapers and product comparison guides to help leads understand how your solution compares to alternatives.
- Interactive demos - Offer prospects the chance to see your product in action through personalized, interactive demos, allowing them to experience key features firsthand.
3. Bottom-of-Funnel (BOFU): Driving conversion
The bottom of the funnel is where decisions are made, so it’s essential to remove any barriers to conversion and clearly demonstrate the value of your SaaS product.
At this stage, leads are nearing a decision, so the focus shifts to encouraging them to take action and convert into paying customers by providing the right incentives and demonstrating ROI.
Key strategies for this stage include:
- Personalized demos and free consultations - Offer one-on-one product demos or consultations tailored to your prospect's specific needs. This lets you address their unique challenges and highlight the most relevant features of your SaaS product.
- Limited-time offers and discounts - Provide exclusive deals, discounts, or extended trial periods to create a sense of urgency and incentivize immediate action.
- Customer testimonials and reviews - Showcase customer testimonials, success stories, and third-party reviews to build credibility and trust. Seeing how your SaaS product has benefited others can help prospects feel confident in their decision.
- Clear and simple onboarding - Ensure that potential customers will receive seamless onboarding support to get up and running quickly. A strong onboarding process minimizes friction and enhances the likelihood of conversion.
4. Retention and upsell: Post-purchase engagement
When it comes to SaaS companies, the funnel doesn’t end after conversion.
Retaining customers and expanding their usage over time is key to maximizing customer lifetime value (CLV).
Therefore, post-purchase engagement focuses on ensuring customer satisfaction, reducing churn, and creating opportunities for upselling and cross-selling.
Effective retention tactics include:
- Customer success programs - Provide ongoing customer support and resources to help users get the most out of your product. Proactively engage with customers to address their needs and concerns.
- Regular product updates and feature announcements - Keep customers engaged by introducing new features, updates, and improvements to the product.
- Upsell and cross-sell opportunities - As customers become more familiar with your product, offer them additional features or higher-tier plans that can enhance their experience.
What are the best practices for SaaS demand generation in 2024?
As the SaaS market continues to grow and evolve, demand generation strategies must adapt to new trends and technologies to stay ahead of the curve, which will only get steeper.
This means that companies will have to stay dedicated to constantly refining and optimizing their strategies.
We'll share a few of the best SaaS demand generation practices to help you ensure that your demand generation approach stays as efficient as possible in 2024 and beyond.
1. Customer-centric approach is the way to go
The era we live in is all about providing highly personalized brand experiences fitted to each customer.
SaaS buyers expect tailored experiences that cater to their unique needs, pain points, and interests. Thus, generic messaging and one-size-fits-all content have become big no-nos.
Instead, SaaS companies need to:
- Develop detailed buyer personas to ensure messaging and content resonate with specific audience segments.
- Use behavioral data to deliver personalized content, emails, and offers at the right stage of the buyer’s journey.
- Incorporate dynamic content into marketing efforts, such as personalized landing pages and targeted email campaigns that adjust based on user behavior.
This way, SaaS businesses can create deeper connections with prospects, increasing the chances of conversion.
2. Don’t shy away from AI and machine learning
AI and machine learning have already transformed almost every industry, and SaaS is no exception.
Namely, AI and ML enable SaaS companies to make data-driven decisions and, as a result, create more precise and effective marketing campaigns across levels.
For instance, AI engines can help:
- Automate personalized content recommendations based on customer behavior and preferences.
- Predict customer intent by analyzing user data, allowing marketers to proactively target the right prospects at the right time.
- Optimize ad campaigns and budgets, using machine learning algorithms to determine which channels and messages yield the best results.
- Improve lead scoring by analyzing a wider ranga of data attributes, ensuring that sales teams focus on the highest-quality leads.
- Make chatbots smarter and better at engaging and qualifying leads.
3. Test and improve strategies over time
The digital landscape has become so fast-paced that what works perfectly well today may fail miserably tomorrow.
That’s why continuous optimization and testing are critical to maintaining a successful demand generation strategy.
Therefore, modern SaaS companies need to:
- Conduct A/B testing on email campaigns, landing pages, and ads regularly to identify what resonates most with their audience.
- Use data and analytics to monitor campaign performance, identify areas for improvement, and make data-driven adjustments.
- Focus on customer feedback to understand what aspects of the demand generation process are working well and where potential gaps might exist.
Common mistakes to avoid in SaaS demand generation
To get demand generation right, it’s crucial to understand some of the most frequently made mistakes that can slow you down and compromise the efficiency of your strategies.
Let’s list the most common mistakes SaaS companies make when crafting and executing demand generation strategies so you can successfully avoid them.
1. Neglecting demand generation altogether
One of the biggest mistakes SaaS companies make is placing too much emphasis on lead generation and not enough on demand generation.
While lead generation is important for capturing prospects, demand generation is a broader strategy intent on building awareness and interest over time.
Therefore, companies focusing solely on gathering leads without nurturing them through the entire funnel often struggle to convert those leads into customers later.
2. Not investing enough in lead nurturing
For SaaS businesses, customer retention is as critical as customer acquisition.
However, many SaaS companies seem to forget that and focus heavily on generating new leads while failing to implement strategies to retain existing customers.
And as the SaaS model thrives on subscription renewals, neglecting customer retention can lead to high churn rates, ultimately hindering growth.
3. Failing to use data and analytics
Data and analytics are essential to refining demand generation strategies, yet many SaaS companies fail to fully leverage them.
Not monitoring KPIs or neglecting to analyze campaign effectiveness can result in wasted marketing dollars and missed opportunities for optimization.
All SaaS businesses should constantly track metrics like customer acquisition cost, customer lifetime value, and MQLs to understand which tactics are working and where improvements must be made.
4. Overcomplicating the buyer’s journey
Although you might be tempted to create an intricate buyer’s journey, doing so can make the overall experience overly complex and fragmented, confusing prospects and putting them off.
For instance, bombarding potential customers with too much information at once or creating unnecessary hurdles in the sign-up process can result in lost conversions.
In this case, simpler is always better, as clear, frictionless, and easy-to-navigate pathways from awareness to conversion are key to successful demand generation.
Examples of SaaS demand generation
Looking into other businesses’ yards to see how they’re handling demand generation can help you design your own strategy, especially when you’re looking up to companies that are absolutely rocking it.
Here are three examples of successful demand generation strategies you can use as inspiration when creating yours.
1. HockeyStack
First up is HockeyStack, a platform designed to help sales and marketing teams drive more revenue and secure a steady pipeline.
Given its specific offering and target audience, HoneyStack has an elaborate demand generation strategy that entails:
- Regularly posting on LinkedIn to drive prospect engagement and brand loyalty - Its posts include feature and upgrade announcements, success stories, tips and tricks for raising brand awareness and increasing conversions, etc.
- Creating a repository of industry benchmarks, data insights, trends, etc. - HockeyStack Labs provides leads with a massive library of relevant trends, studies, reports, and more, all of which provide significant value. This helps raise brand awareness and build trust with leads.
- Investing in gamified content - HockeyStack’s Flow is marketed as “Netflix for B2B”, and it essentially comprises games, podcasts, and series dealing with important B2B marketing topics. This enables leads to mix learning with entertainment, allowing HockeyStack to drive loyalty and trust.
2. Arcade
Arcade is an interactive demo platform.
Given this industry's competitive market, investing in demand generation was a must for Arcade to cut through the noise.
This is why the company focused on:
- Publishing educational blogs - Arcade invests heavily in publishing SEO-optimized content, which helps raise brand awareness, improve SERP rankings and domain rating, and establish it as an industry leader.
- Sharing social proof—As an interactive demo platform, Arcade leverages its customers’ success stories and best-in-class demos to showcase its product. This strategy helps drive trust, as leads are likelier to believe other customers than traditional marketing approaches.
- Building a rich knowledge base - This helps make the entire onboarding and product adoption process much easier, improving overall customer satisfaction and boosting retention rates.
3. Arc
Arc is a FinTech company that helps modern startups better manage their idle cash.
As such, it has a highly specific target market, so it had to pay close attention to designing an adequate demand generation approach.
To create demand and capture it efficiently, Arc leveraged:
- Email outreach - To raise brand awareness and nurture trust, Arc used drip campaigns targeting ICPs.
- Multichannel campaigns - Arc made sure to stay top-of-mind by using social media, content, in-person and online events, SEO, and more.
- First-class customer support - To boost retention rates.
All those efforts combined resulted in Arc gaining significant traction online, but its team was unable to:
- Handle attribution, as they had no way of knowing which of their strategies were working and to what extent.
- Capture the demand they generated, as they couldn’t identify leads who ended up on their website.
To overcome these challenges, Arc implemented Warmly, which enabled it to:
- Detect visitors with the highest levels of buying intent.
- Track visitors who’ve come through specific email campaigns, enabling them to understand which are performing well.
- Engage visitors through AI Chat and qualify them.
As a result, Arc experienced 200% ROI in just 6 months.
Wrapping up
Building an efficient SaaS demand generation strategy requires time, effort, and lots of planning.
However, the tips, best practices, and efficient SaaS demand generation examples we provided here will surely help you quickly grasp the concept.
And to ensure that you’ll be able to actually capture the demand you’ve successfully created, don’t forget to implement Warmly as part of your strategy.
The platform will enable you to identify website visitors and engage them while they’re still hot, boosting the likelihood of conversion.
Try it yourself - sign up for Warmly’s free plan and start capturing qualified leads within minutes.