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Are Marketing People Needed in Selling SaaS Solutions?

  
  
  

This is the second part of an article Are Sales People needed in Selling SaaS solutions written in response to conversations with three entrepreneurs who have created, or are creating SaaS solutions to serve very specific needs for a well-defined market opportunity. In conversation it emerged that none of them were planning on having any sales people in their business.

The next question I asked was, are you planning on having any marketing people in your business? The answer in each case was  either part time, or, we are not ready to hire yet. What is the role of marketing in a SaaS business? I offer the following definition of the role of marketing in a SaaS business,"Marketing identifies, attracts and incubates leads."

In the third step in this journey I went to each entrepreneurs Website and was not surprised to find highly product focused messages which were barely intelligible through the benefit statements and what David Meerman Scott calls product-speak gobbledygook; peppered with words like "next generation"Gobbledygook manifesto, flexible," "robust," "world class," "scalable," and "easy to use,", not forgeting "cutting edge," "mission critical," "market leading," "industry standard," "turnkey," and "groundbreaking," and the old favorites "best of breed," and "user friendly." 

The other problem with these sites was that they did not engage me around my issues and they did not encourage me to hang around.

So are marketers required in SaaS businesses? If you have gotten this far without reading the prior article, please stop now and read the prior article Are Sales People needed in Selling SaaS solutions, before reading on.

Marketing’s role in selling to the early market

To succeed in achieving early adoption of SaaS solutions, marketers must create mindshare at the individual level and establish thought leadership at the system level, by focusing on sector-based initiatives...when the World is a click away, focus is required.

To create awareness, interest and inbound inquiries, marketers need to incorporate "buyer-relevant" messaging focused on the persona's of the buyers in target sectors on the company's Internet site to garner mindshare in individuals and thought leadership at the system level, through a combination of the following content creation activities;-

  • Redeveloping Website messaging to be buyer-relevant, rather than product-focused,
  • Blogging regularly on topics of interest to buyer-persona,
  • Optimizing the Website and blog-posts for SEO,
  • Building inbound links with partners, interested visitors and industry thought leaders to increase Google rankings,
  • Creating and archiving Webinars, videos and podcasts, which are instantly playable or downloadable,
  • Creating e-books and white papers that pull prospects, which can be easily shared and which amplify your ideas through social networks. 
  • Reaching out to interested individuals via opt-in email and RSS subscriptions

In “Diffusion of Innovations”, Everett Rogers examines the role of individual thresholds of adoption and the role of social networks to achieve critical mass at a system level. As mentioned in the prior article, Social Networks are inside their own "hypergrowth Tornado" of adoption and are core to the marketing mix.

Inbound Marketing platforms such as HubSpot offer an ideal set of integrated marketing and social networking tools for the entrepreneur and marketer to systematically create mindshare and generate inbound leads from interested individuals. 

Using inbound marketing platforms like Hubspot, an entrepreneur may find that the combination of tools provided and the range of services available from the supporting Hubspot partner community can provide a low cost and highly effective alternative hiring marketers....at least until sufficient momentum and cash is available in the business to support a full time marketer.

For a more complete discussion on this topic, please download our free white paper - Convert Inbound Lead Generation into Better Sales Performance.

For specific recommendations in improving inbound marketing and sales performance, you could register to download our Guide to Better Sales Performance.

Comments

Good post and I agree. Too much speeds and feeds and not enough problem solving. Companies also need a content marketing strategy -- they need strong and compelling content. They also need a well-trained sales force that can ask deep questions on the customers internal offline processes, as described in the book Dirty Little Secrets by Sharon Drew Morgen.
Posted @ Wednesday, October 14, 2009 10:08 PM by Jeff Ogden
Just say "no" to gobbledygook. Thanks for mentioning my work. David
Posted @ Wednesday, October 14, 2009 11:48 PM by David Meerman Scott
Marketing is essential we have found it important to invest in sales and marketing to educate the market on a solution to their problem, in our case inbound email and telephone management and develop the business case to invest in the solution.
Posted @ Thursday, October 15, 2009 3:39 AM by Krystyna Johnson
I agree with your post. Would suggest most tech start ups need to ensure they get the right balance between technical and marketing skills if they are to cross Geoffrey Moore's chasm.
Posted @ Thursday, October 15, 2009 3:39 AM by Chris Evans
At the risk of being overly blunt, SaaS vendors that don't invest in marketing will underperform market opportunities and investor expectations. Those that don't invest in a sales organization will die a rapid death. 
 
The key point is that SaaS is simply an alternative delivery model with a different pricing structure. The user requirements, eval process and buying criteria are essentially the same regardless of on-premise or SaaS delivery. The SaaS vendor that does not define and establish the brand, develop markets and generate leads (marketing deliverables); or define target markets and engage, manage and close deals (sales deliverables) will fail just as the on-premise vendor does. 
 
Vendors that don't invest in marketing and sales usually do so because of 2 reasons - the CEO is naive (usually delusional and thinks the product is so good it sells itself) or they lack the capital to fund the business.
Posted @ Thursday, October 15, 2009 5:06 PM by John Keenan
Great comments and thanks to all of you for taking the time to make this post even more valuable. 
All the best, 
Mark
Posted @ Friday, October 16, 2009 6:24 AM by Mark Gibson
Excellent write up - I would only add that some of your subjects seem to miss the other side of SaaS - the ability to move to a market level where you offer a broader market product but a more focused feature set. Again, this as much the job of marketing as anyone to point this out, but for traditional software vendors - thinking of the general rule that capturing the top of the market is the most efficient sales strategy is natural.  
 
It is also just plain dumb for SaaS vendors. You have so much more capability when it comes to solving the 2nd and 3rd tier market issues than you ever did for the 1st tier market and now - you have the platform to do it!  
 
Oh well... Leave it on the table for someone else...
Posted @ Friday, October 16, 2009 5:00 PM by Michael Dunham
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