The SaaS business community uses email marketing as one of their channels for communicating with audiences on a regular basis. Email marketing is used to notify potential customers about updates to SaaS products as well as to advertise the benefits of SaaS products.
Although SaaS marketing companies such as Rocket SaaS use email marketing as one of their marketing strategies, SaaS businesses also employ webinars, social media marketing, SEO, content marketing, multimedia marketing, blogging, guest blogging, local SEO, and other forms of online marketing.
But now, the primary goal of this article is to give you access to an exhaustive, well-researched, and informative guide on SaaS email marketing strategy.
SaaS metrics are crucial for understanding your business’s performance and can also help validate SaaS product ideas. The key to SaaS success is a constantly growing customer base. Hence it is essential to keep track of the product’s growth and health. Well-translated metrics can help predict customer retention, revenue, and ROI and help make data-driven decisions.
Let’s get going!
SaaS Email Marketing: What Is It?
SaaS email marketing is a type of digital marketing channel that SaaS companies use to promote their products directly to their potential and prospective customers through a series of campaigns that include graphics and content concerning advantages, information, and timely updates about new features of their SaaS products.
SaaS enterprises must have a direct, effective method of contacting their customers because SaaS products are not physical and can only be accessible online.
Because SaaS products are adaptable and extendable, SaaS businesses must maintain a direct line of communication with their clients in order to update them on any recent developments in their products.
Welcome emails, newsletter emails, dedicated emails, lead-nurturing emails, sponsorship emails, transactional emails, re-engagement emails, and brand story emails are just a few of the email marketing formats used by SaaS businesses as part of a SaaS email marketing strategy.
SaaS companies use all of these sorts, each of which has a certain area of expertise.
The Main Objectives of a SaaS Email Marketing Strategy
A SaaS email marketing strategy concentrates on four things that are highly important to the business. The following section reviews these elements in great detail. Let’s investigate them.
The SaaS product is the main emphasis of every SaaS email marketing campaign. The SaaS company ensures that all content in any type of email it sends mentions the product it is offering, although there can be different angles used to lead the email recipients to buy the SaaS product and stick with it alone.
These viewpoints may cover the potential of your SaaS products, your SaaS value proposition, and the reasons why buyers should always choose your products over those of many other competitors.
Convincing customers of the value of the products is another aspect that every SaaS email marketing strategy focuses on. SaaS companies make an ongoing effort to provide their clients with the best possible pricing, explain why it is necessary, and persuade them to pay it.
Potential clients may choose another option if they feel the price is too high. Price showcasing is thus a crucial component of a SaaS email marketing strategy.
Promotion serves to differentiate SaaS products from those of rivals, raise knowledge of the products’ existence and positioning, promote brand establishment and growth, uncover new secondary markets, foster customer loyalty, and boost sales.
All of these advantages are the main justifications for why any SaaS email marketing strategy ought to concentrate on promoting SaaS goods from SaaS businesses.
SaaS companies are spread out all over the world. Both customers and SaaS companies value the sales channel. Markets that are focused and easy to use have higher conversion rates and lower bounce rates.
Each email that is sent out must have clear and straightforward information about the online store where clients may make purchases.
The Metrics for SaaS Email Marketing That You Must Track
In order to know how effective SaaS email marketing is, a SaaS company that prioritizes email marketing efficacy must measure a few metrics. Here is a list of these measures. Let’s examine each one in turn.
Return on investment
ROI: The profit made above the cost of an investment is referred to as return on investment. It is a ratio between net income and investment, to put it another way.
Economies of scale, market dominance, and managerial caliber are some of the elements that impact ROI. ROI for SaaS email marketing is the increase in profit as a result of marketing efforts.
SaaS firms can assess the extent to which email marketing initiatives either holistically or on a campaign basis contribute to revenue growth by measuring return on marketing investment.
They will also be able to judge whether or not their SaaS email marketing strategy and marketing plan are appropriate for their company.
The proportion of subscribers out of all subscribers who open an email sent by the owner of the email list is known as the open rate. Every SaaS marketing department must take note of this important factor.
This is due to the fact that your email subject line and preheader’s amount of intrigue generation determine how high your open rate will be. It serves as a baseline for gauging the success of your SaaS email marketing strategy.
Understanding your open rate will also help you understand the kinds of content that appeal to your segmented subscribers the most and how to use this to your business’s advantage.
Email bounce rate
The percentage of email addresses on a mailing list of subscribers that did not receive promotional messages as a result of the receivers’ mail servers returning them is known as the email bounce rate.
Depending only on the reason for the bounce rate, this may be a harsh bounce or a soft bounce. According to statistics, there should be a 2% bounce rate for every 100 emails sent to a list of subscribers.
Anything higher than this needs to be taken into consideration. However, there are two variations on bounce. Email deliverability can be impacted by a high bounce rate, which can also damage sender reputation scores.
Blacklisting could cause email marketing efforts to fail and be harmful to the success of a SaaS email marketing strategy for any email sender with low deliverability rates. Monitoring the bounce rate should be given top priority in order to avoid becoming a victim of this.
The proportion of properly sent emails is determined by the number of distinct receivers (subscribers) who clicked on any link included in the email that was sent to them.
The click rate is derived by dividing the total number of email clicks by the total number of emails delivered to all subscribers. A significant sales conversion tool, click rate is a SaaS email marketing strategy measure that can be used to determine how clickable your subject lines are as well as to determine email deliverability.
Additionally, it assesses and positions the campaign’s effectiveness as well as the effectiveness of your copy, CTA, design, subject line, and preheader among many other elements.
According to HubSpot statistics, a good click rate for businesses each month is 6.5% on average. In general, a click rate of 2% is a decent starting point from which to continue to improve a SaaS email marketing strategy.
Growth of your email list
The goal of email list growth is to get all sign-ups’ attention. This is accomplished by sending the relevant email copy at the right moment. Because it serves as the foundation for measuring and evaluating all other metrics, this statistic cannot be neglected.
Your SaaS company’s sales, reputation, position among competitors, brand voice, and awareness will all suffer if your email list development is slow.
Due to all of these aspects, one of your main objectives for your SaaS email marketing strategy should include assuring the growth of your email list.
In order to avoid appearing to attract a lot of potential customers with low conversion rates, you must also produce email text that is compelling enough to draw readers in and persuade them to take the necessary action.
The proportion of subscribers who click on a link in an email copy and carry out the main action is referred to as the conversion rate. Purchasing SaaS products is the main step, which primarily aims to increase revenue.
The effectiveness and engagement of a SaaS company’s email text is measured by how many people click on the link in the email. Conversion rates also impact whether or not there will be a significant return on investment (ROI).
This means that a high conversion rate results in a high return on investment, whereas a low conversion rate results in a low return on investment.
According to statistics, a good conversion rate is between 2 and 5 percent. This is a benchmark that should always be pursued while monitoring the analytics of your SaaS email marketing strategy.