Over 80% of businesses rely on cloud services and use at least one SaaS application. The total market volume of the SaaS industry will be over $320 billion in 2024.

While these stats represent growth opportunities for SaaS businesses, they also highlight tough competition. However, SaaS brands can stay competitive by implementing demand-generation strategies. 

Read on to get insights on building a demand gen framework, the channels to use, the metrics to track, and the stages of generating demand.

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What is SaaS Demand Generation?

SaaS demand generation is a process that stirs interest in and awareness about a SaaS solution. 

In addition to building brand awareness and recognition, its other objectives include:

• Achieving a solid brand presence
• Establishing topical authority
• Creating a pipeline of qualified leads
• Building trust and customer loyalty

What is B2B SaaS Demand Generation?

B2B SaaS demand generation creates awareness and sparks the desire of key company decision-makers for a SaaS product.

With effective B2B SaaS marketing strategies, businesses can lower acquisition costs, expand their market reach, differentiate their offer, and achieve short sales cycles.

How is Demand Generation for SaaS Any Different?

Demand generation for SaaS is complex. In addition to having longer sales cycles, the campaigns target more sophisticated decision-makers than their B2C counterparts.

SaaS demand generation emphasizes the following:

• Creating targeted content that shows the product’s outstanding features and addresses the customers’ pain points.
• A well-designed and intuitive website for guiding prospects through their buyer’s journey.
• Engaging prospects throughout the buyer’s journey.

Demand Generation Framework for SaaS Businesses

A solid demand generation framework drives predictable growth to a SaaS business. It simplifies creating awareness, generating leads, nurturing prospects, and monitoring engagement levels.

To develop a successful framework, follow these 5 steps:

1. Build a Customer Profile

An ideal customer profile (ICP) is a guide to targeting the best-fit customers and generating qualified leads. B2B SaaS businesses should analyze companies based on their revenue, number of employees, and industry. 

With a well-defined ICP, brands can use emotional messaging to address their pain points and propose solutions.

2. Develop a Positioning Statement

A thoughtfully crafted positioning can make a brand stand out from competitors. 

The statement highlights the core USPs and the specific pain points a product solves, making the offerings resonate more with the target audience.

3. Select Different Channels

Successful campaigns incorporate both inbound and outbound marketing channels. Examine the channel where the target audience spends their time, improving the chance of the best prospects finding a brand. 

Remember to set clear goals and analyze the profitability of each channel.

4. Create Targeted Campaigns

Segmenting the target audience to deliver tailored campaigns that enhance the customer experience. 

The content of all strategies should inform, captivate, and inspire the prospect to enter the sales funnel.

5. Measure and Tweak

The next step is to track campaigns using tools like Google Analytics and Hotjar. Common metrics to measure include sign-ups, unique visits, and engaged users. These insights allow businesses to optimize their SaaS demand generation funnels for better results.

Want to nail your demand gen framework?

I can help you to understand your ICP deeply, create your value proposition, and refresh your campaigns. We can collaborate to craft messaging that resonates with your target audience’s needs and emphasizes the benefits of your offering.

Schedule a discovery call to develop targeted campaigns that drive the pipeline and revenue for SaaS businesses.

SaaS Demand Generation Channels to Target

So, which demand-gen channels should a SaaS business choose? Here are the common options:

Webinars

Webinars allow SaaS marketers to directly engage their target audience through live presentations and Q&A sessions. 

They present perfect opportunities to establish topical authority and convince viewers of that particular product’s superiority.

Email Marketing

Email marketing is a cost-effective tool for B2B SaaS companies. It provides a direct and personalized opportunity to nurture prospects, generate leads, build brand loyalty, and measure engagement levels.

Podcasts

Podcasts can be a valuable tool in long-term lead nurturing efforts. SaaS businesses can use them to inform their audience about new technologies and share valuable product information.

Paid Media

SaaS companies can utilize PPC advertising to reach their prospects and build a strong online presence. With ads, users are exposed to the brand and are likely to remember it when purchasing a solution.

Cold Outreach

Reach prospective clients that haven’t shown interest in a product through cold outreach methods like calls, emails, and direct messaging. For example, LinkedIn is an effective channel for reaching the right decision-makers through in-mail campaigns and sponsored content.

Content

SaaS content involves establishing topical authority and sharing informative content to solve potential audiences’ challenges. Optimized content improves website rankings on search engines and attracts organic traffic.

6 Steps to the SaaS Demand Generation Process

A SaaS business should optimize and improve customer experience in each of the six stages of the demand generation funnel:

1. Awareness: Prospects become aware of the product and its potential to solve their pain points.
2. Consideration: Lead magnets, such as free ebooks, give more details about fulfilling the prospect’s needs.
3. Decision: Prospects consider the product the most viable solution to their problems.
4. Activation: Prospect is convinced and opts in to use the product.
5. Expansion: The brand suggests a premium plan or additional packages to address other SaaS-related issues comprehensively.
6. Promotion: If the product meets (or surpasses) the customer’s expectations, they will promote it to friends and acquaintances.

Demand Generation Metrics to Track Success

Brands can use several metrics to gauge the effectiveness of their marketing efforts and optimize them accordingly.

Check out some standard metrics:

• Marketing Qualified Leads (MQLs): Prospects show interest in the product by interacting with lead magnets, such as free ebook downloads. You can track this metric using any customer analytics tool, such as Salesforce, Pipedrive, Google Analytics, etc.
• Sales Qualified Leads (SQLs): These are higher-quality leads than MQLs because they seek more specific details about a product. You can also use the same tools mentioned above to measure this metric. 
• Free Trial Sign-Ups: A surge in new activations signals an effective demand generation campaign.
• Conversion Rate: Shows the effectiveness of a SaaS demand generation funnel by monitoring how many free trial users turn into paying customers.
• Cost Per Acquisition: Measures the total costs of acquiring and converting a lead.
• Customer Lifetime Value (CLTV): Calculates the total revenue a SaaS product will generate from a customer. It also helps explain customer acquisition costs.
• Monthly Recurring Revenue (MRR): Measures a SaaS product’s growth potential by predicting each customer’s monthly revenue.
• Return on Investment (ROI): Shows the profit generated for every dollar spent on marketing.
• Net Promoter Score (NPS): Measures current customers’ likelihood of recommending a product. Those who give the highest scores (promoters) also benefit the brand through grassroots marketing.
• Churn Rate: Calculates the number of customers who stop using the SaaS products after a period. A high churn rate negatively impacts ROI.

Frequently Asked Questions (FAQs)

Here are quick answers to the most common questions about SaaS demand generation:

Why Do All SaaS Companies Need Demand Generation?

All SaaS companies need demand generation because it has these benefits:

• Ensures a flow of potential customers throughout the sales funnel
• Taps into an audience that hasn’t recognized the product

• Allows a business to build trust, making it easy to acquire customers
• Accelerates the time potential customers become leads

Is Demand Generation B2B or B2C?

Demand generation is applicable in B2B and B2C companies but has varying approaches.

In addition to having longer sales cycles, B2B campaigns target decision-makers, while B2C campaigns focus on specific individuals.

Demand Generation vs. Lead Generation — What’s the Difference?

Demand generation aims to create awareness and interest in an offering and brand through educational content, while lead generation seeks to identify potential leads and nurture them into buyers.

Demand generation occurs at the top of the funnel, while lead generation happens at the bottom.

Conclusion

When SaaS businesses plan and formulate marketing strategies correctly, they will see an improvement in their demand and lead-generation efforts.

As an experienced demand-generation consultant, I can help brands create data-backed strategies that empower them to thrive. We will also craft the perfect messaging for each stage of the demand generation funnel to deliver an engaging brand experience.

Schedule a discovery call to unlock better SaaS targeting and generate revenue.