SaaS Marketing in 2022
Overview on SaaS Marketing
In 2022, SaaS is expected to dominate most of the software market with an 80%+ penetration rate. SaaS marketing has been a strategy that businesses have been using for years and it is continuing to gain popularity. In 2022, a number of new strategies are expected to emerge, which will take SaaS marketing from a vertical market focus to a mainstream form of digital marketing.
Despite the influence it has had on business organizations since its start, SaaS will continue to experience high demand in 2022, especially as more companies begin transitioning their legacy systems over to hosted solutions. This should give rise to an interest in SaaS marketing professionals who can help these companies navigate through the complexities of this developing channel.
Cybersecurity concerns should also help organizations realize the benefits of SaaS security, which will further fuel demand for SaaS marketing professionals.
Cybersecurity threats pose a major concern among companies that use SaaS software programs. While these threats are not exclusive to cloud-based solutions, they are often more severe due to the way in which many SaaS providers store consumer information on their end servers. This means that if proper precautions are not taken, sensitive data can be at risk of being stolen or leaked without a company’s knowledge.
Advantages of SaaS Marketing
One emerging strategy in 2022 is expected to involve using machine learning to enhance predictive capabilities across all areas of digital marketing. Because machine learning technologies utilize large volumes of data – including expertly curated conversion funnels – they are able to provide businesses with valuable insights into how SaaS customers move through the sales cycle. The goal is to use this information to identify potential triggers at specific points in a customer’s journey, which can be used to influence them prior to making a purchase decision.
To make machine learning more effective for SaaS providers, many of them will integrate these technologies into their products by the end of 2022. By doing so, they will be able to offer highly personalized services that incorporate unique customer preferences and buying habits, ultimately helping companies increase conversion rates and improve their bottom line. These efforts should yield higher levels of revenue for SaaS professionals as well as create new job opportunities for data scientists who are keen on improving digital marketing capabilities across multiple industries.
The Growth of SaaS
The SaaS market has seen unprecedented growth in recent years, with more businesses turning toward cloud solutions for their software needs. According to Gartner, the global revenue of SaaS will reach $47.7 billion by the end of 2022. The same report also claims that 36% of companies worldwide were using SaaS as of 2015, a figure that is expected to rise significantly in 2022.
A Forbes study further deepens the need for professionals within this space, revealing that more than 30% of mid-size businesses are struggling with SaaS, due largely to a lack of expertise with this form of software. SaaS marketing becomes more important as businesses continue to rely on hosted solutions for their computing needs, since the responsibility is now being placed on providers to generate consumer demand through these channels.
In the SaaS market, there is a lot of technology that will morph and evolve to become more efficient. The biggest change in SaaS marketing from 2017 to 2022 will be most likely AI or Big Data.
When looking at the best companies established before 2012, their revenue doubled from 2011 to 2014. After an initial few years of strong growth, most companies would start seeing a slowdown in growth as they got closer to their natural limit for customer acquisition.
SaaS in Recent Years
Surrounding 2020 there were many new startups being placed with Venture Capitalists which made it seem like a bubble was going to burst soon – Silicon Valley had an average startup failure rate of 90% then (CNBC). With increased competition due to decreased barriers of entry, with large tech-giants investing in their own SaaS products, whether they would become a threat was yet to be seen. We can look at the past 5 years that have occurred and see how things have moved.
In 2021, we saw very few tech startups with inflated values go bust which made Venture Capitalists more confident about their investments in 2020.
One of the most important aspects for a company looking to gain future success is having access to Big Data. With Gartner estimating 1.7 megabytes of data per second for every human on earth by 2022 it will become increasingly difficult for companies who are unable to properly utilize this data to make fully educated business decisions. This includes sales teams within an organization, as well as the SaaS marketing teams who will need to be able to understand what individual customers are looking for and provide solutions that fit their needs. This allows companies to predict future demands of their customers and adjust accordingly, increasing chances of customer retention.
SaaS and Social Media
Social media has become an increasingly more important aspect of marketing as it provides a free and direct line to potential customers through internet platforms such as YouTube and Facebook. SaaS marketing platforms have been designed with this in mind and integrate directly into the social platform so the company can harness its potential.
When making use of these platforms, we must remember that we do not know what we should expect from 2022, as there are many new innovations (AI’s) that will be developed which may put human marketers out of work.