Compass, a business analytics firm, has produced a report on SaaS - the trendy, high-growth industry Gartner predicts will shine until at least the end of the decade. Therefore, one would assume, that with a good idea, this is the industry to be in if you want to grow a successful business.
But in reality, the SaaS market has become a brutal skirmish from which only the strongest companies will survive. It isn’t enough to be the fastest, cheapest, or even the best. Your company needs a smart B2B lead generation strategy if it’s going to be a major player.
The market still has massive potential for growth. In fact, the sector is expected to grow 20% by 2020, 3x faster than the traditional software industry.
Inevitably, this promise has attracted major interest from entrepreneurs and business leaders around the globe. But in the scramble to be first to market, most companies have become heavily focused on profit and neglected growth. The result is a two-tiered paradigm. One tier comprising a handful of giants, such as Salesforce and Sage, and the other tier made up of a copious amount of small providers. In fact, only 7% of SaaS businesses have over 10,000 users.
Assist your sales team
In such a competitive market, customer acquisition is vital to success. But the overriding focus on profit over growth means many companies have relatively small sales teams – only one or two people on average. Furthermore, most SaaS companies don’t spend anything, or at least very little, on advertising and marketing. This means limited sales teams have to proactively fight for the same customers against numerous others.
Direct sales may be the most effective strategy for SaaS businesses to attract customers but to stand out in such a claustrophobic market, you need to adopt a multi-channel marketing approach. Download our lead generation planning manual for more information about how an integrated lead generation plan that combines direct sales and inbound marketing will grow your business and increase profitability.