If you’re looking for the latest SaaS marketing statistics, you’ve come to the right place. In this post, we’ll take a look at email marketing statistics, landing page conversion rates, and more. So whether you’re just starting out in SaaS or are looking to improve your current strategy, read on for some valuable insights!
Marketing is an art form that considers different approaches and techniques to sell products. A company must use various Saas marketing statistics because there are so many variations in outcomes.
SaaS marketing is your answer if you’re looking for market statistics on how much it costs to acquire a new customer and what techniques agencies use.
48% of businesses report that their average contract length is one-year, while 13% report a monthly agreement. 11% of respondents said that their average contract length was three years or longer.
- To obtain $1 of ARR (Annual Recurring Revenue) for a new customer, the startup cost is $1.32. This price can be significantly reduced to $0.71 by using an upselling method with existing clients.
- The startup spends close to 92% of its initial average contract value on sales, which results in a payback time frame of 11 months on the CAC (customer acquisition cost).
- Having well-known, global brand awareness and customer service is an excellent way to add credibility and help generate substantial saas revenue from second orders via referrals.
Why should you use SaaS marketing statistics?
Ninety-three percent of CIOs have either adopted or plan to adopt cloud SaaS and apply the growth statistics. As more businesses embrace cloud services, they will grow even more competitive.
This year, we help businesses like yours level up and conquer 2022 with insightful resources. And one of the most important ways to do this is by making data-driven decisions. At Big Leap, this is what we do best – so dive into these 40 SaaS/tech marketing statistics to spearhead your online strategy!
Here are the 7 key areas we’ve organized our sales training around:
- General marketing trends
- SEO & PPC trends
- Content marketing trends
- Social media trends
- Email marketing trends
- Customer trends
- Sales/purchasing trends
General Marketing Trends
The data tells us that SaaS statistics marketing is headed in the right direction, but there are still a few things to work on.
- B2B tech companies dedicate an average of 15% of their annual budget to marketing each year.
- SaaS companies typically invest around 80-120% of their revenue into sales and marketing during the first three years, with additional money coming from venture dollars or other forms of capital.
- By 2025, it is estimated that 80% of all B2B software and SaaS sales interactions will take place online.
- In a survey, 80% of B2B tech marketers expressed that writing skills are important. This was followed by content marketing skills (78%), digital media skills (77%), data analysis skills (77%), and email marketing skills (65%).
SEO & PPC Trends
It’s hard to keep up with the competition nowadays. It seems like every business is spending their money on SEO and PPC campaigns because it pays off for them.
If you’re looking for some stats to help shape your SEO and PPC strategies, here are a few: 1. A study found that when it comes to clicks on paid ads, people who clicked the ad in question were 3x more likely than non-clicks or “organic” users 2. Paid search is worth 4% of digital marketing budgets according to Search Engine Land
- Top-tier SaaS companies use organic search to generate leads and traffic. It accounts for up 68% of all leads.
- A survey of startup founders revealed that 90% believe SEO is a key driver for brand awareness and leads to their business.
- BigCommerce, a SaaS company, reports a threefold increase of trial conversions and an improvement of 10% in the quality leads from their ad campaigns.
- B2B software companies and SaaS buyers spend a significant amount of time conducting independent online research during the buying process. This allows them to gather information and compare different options before making a purchase decision.
Content Marketing Trends
Great content is the backbone of SEO. However, as search engines continue to evolve and change to meet their users’ needs for more personalized information, companies have been turning away from technical language and opting instead for a more creative approach that fosters valuable connections with customers.
- Nearly nine out of 10 large SaaS businesses maintain blog posts as part of their online marketing strategy.
Nearly 36% use their blog posts as a way to educate readers about various topics within the industry.
- WordPress is the most popular content management system for large SaaS companies.
- According to a study by Venngage, 41.5% of marketers believe that infographics and other original graphics perform the best when it comes to engagement. 25.7% said charts and data visualizations are most effective.
- At least 18% of the top SaaS apps businesses use podcasts as a marketing tool.
- Almost half of all SaaS blogs contain a call-to-action urging readers to subscribe.
- Creating content is a challenge for 62% of marketers in the B2B tech sector.
- Importance of backlinks and how Saas apps use them.
- Saas companies generate approximately close to 400 visits organically every month.
- SaaS companies create a quarter of all webinars.
- B2B believes that webinars generate almost close to three-fourths of a sales lead.
Social Media Trends
It’s no secret that there are a lot of conversations happening on social media. With these conversations, you can find new keywords and content ideas to help expand your SEO efforts for your brand.
It’s time to get smart and stop making the same mistakes. These stats will help you identify where your company needs improvement.
- According to a recent study, YouTube is the top contributor to social traffic for 98% of the top 50 SaaS companies. Facebook (96%), LinkedIn (78%), and Twitter (72%) follow closely behind.
- According to recent research, 71% of consumers who had a positive experience with a brand on social media recommend it to their friends and family.
- According to a recent study, 86% of consumers use social media when researching potential IT purchases.
- According to recent studies, 67% of online users have purchased a product or service after seeing an ad on social media.
- According to a case study, animated ads on Facebook receive 1.5x more clicks than static image ads.
Future of Saas marketing statistics
A new report from the industry says that by 2023, public spending on SaaS products and cloud services will grow to over $500 billion.
Three industries are likely to abandon traditional application software for SaaS solutions: professional services, discrete manufacturing, and banking.
The software industry is expected to grow by more than 22% every year for the next five years, which means we’ll be seeing a lot of change.
We can see that the number of SaaS solutions will continue to grow, especially in various industries.
The Federal Government spent close to $6.6 billion on cloud growth and SaaS marketing statistics in 2020
It seems that the government can’t stop spending money on cloud-based and SaaS applications. The last year’s record for federal agencies has been topped, with this new report forecasting a 9-10% annual market growth trend in implementing those solutions through 2023.
The government is mandating that federal agencies adopt Cloud Smart, which means transitioning to a new way of working by using SaaS solutions and cloud support services. The civilian agency has led the charge with $4.5 billion out of the total $6.6 billion spent so far.
The Department of Veterans Affairs, Centers for Medicare and Medicaid Services, US Air Force top the list.
A glimpse into the projected market growth trends of Saas industry
With the advent of SaaS, there are 15 529 new companies per year.
Despite the recent drop in new SaaS companies, analysts predict that as more people turn to software-as-a-service and cloud solutions, we will see a rise in these types of businesses.
As a result of the recent decline in new SaaS companies, 2020 may have been impacted by the global Coronavirus pandemic.
Despite the setbacks, SaaS companies are still growing at a remarkable rate.
How did Saas statistics boom during the covid-19 pandemic?
Before the Covid-19 pandemic, many companies were looking to improve their operations. But with a remote workforce due to the epidemic and new challenges in-store, more organizations are turning towards SaaS solutions.
After the Ebola virus outbreak, companies were spending more money on software as a service. According to research, this trend happened in just four months.
It’s not just the one-time costs of new software that are a burden for businesses. Research has found that even though most companies start with 10 different SaaS products in any given month, they also abandon 4 of them within 30 days.
Saas statistics growth during the years 2018 to 2020
Companies are investing more in SaaS products this year than they did last. Compared to 2018, 50% of company spending is going towards the customer acquisition and usage of these services.
It turns out that as companies are buying more SaaS solutions, they’re not acquiring new products. I’m sure there’s a reason for this, and it might be worth investigating.
It’s not just a simple process of adding more products to your subscription – the upgrades will be different for every company. The price could go up, or you might get access to advanced features that weren’t available before.
How does the worldwide Saas market is predicted to read $171 billion?
The SaaS markets are expanding globally. Currently, at $145 billion, the global Saas markets will increase to a whopping $171 billion by 2022.
The skyrocketing growth of the software industry is because these companies are selling their products through monthly subscriptions or pay-as-you-go.
If a company is looking to develop their software, they need someone who can code and eye for design. This becomes too expensive and time-consuming in the long run. Instead of wasting money on custom development that may or may not work out, these companies are better off using SaaS products to save them both cash and headaches.
Clients get cheaper solutions with SaaS, but it’s the best deal for companies who have recurring revenue.
Companies’ interest in marketing automation tools
More companies are ready to adopt marketing automation tools and, each year, at a steady pace of 14%, the adoption rate is growing.
Organizations using Saas marketing statistics to centralize the work management
As companies rely more and less on SaaS products, their management becomes increasingly complex.
To manage all of the products in their software-as-a-service portfolio, organizations will need a centralized SaaS management system to do so efficiently.
A SaaS Management Platform (or SMP) is a great way to stay on top of any suspicious activities with logins, monitor user credentials and make sure they are secure, and streamline administrative IT processes. The software companies can also track the actual usage of your product or service’s features, so you know what areas need improvement.
How small companies are spending money on Saas marketing products
As of 2020, small companies are spending a staggering $202,000 on SaaS products. This is up from only $30,000 in 2015.
The amount of money spent on SaaS products by small businesses has increased six-fold in the last five years.
Most Saas companies 80% of their funds on sales statistics in the first five years
SaaS companies know that they will have to work hard for the first five years of their business. They also don’t expect the most revenue during this time.
You know what they say, “once you go digital, you never go back.” But first, we need to build our customer base developed by customer experience. That’s why at the beginning of your sales career, 92% of your revenue goes into acquiring new customers. Then 80-90% is invested in marketing sales statistics so that future potential clients will remember us when it comes time for them to buy a product or service.
SaaS companies that rely on inside sales, such as content marketing and SEO, should also invest in field sales. Companies with this approach can generate higher revenue because they are not just limited to leads coming from their website.
How did Saas companies manage to keep their churn rate below 10%?
The survey included 300 companies that offer SaaS and found that the majority of them had churn rates below 10%.
The study also revealed that one-fifth of the respondents struggle with churn rates above 15%, which is an alarming problem and needs to be addressed as soon as possible.
Technology is changing the way that we do business. A recent study found that SaaS providers are growing at a staggering pace and will continue to grow in popularity as new solutions change how businesses operate.
Have you ever wondered if your company is one of the ones we talked about today? If so, think back on what you’ve read and use it to improve your business.
Thanks for reading! We hope you found this post helpful. If you’re looking for more information on SaaS marketing statistics and SaaS marketing, be sure to check out our other posts on email marketing, landing pages and paid advertising.