10 SaaS Trends You Can’t Ignore in 2024

  ●   February 28, 2024 | Technology
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February 28, 2024 | Technology

Embarking on a successful SaaS marketing journey requires staying ahead of the curve, especially in the rapidly evolving landscape of 2024. As technology and consumer expectations continue to shape the industry, we explore the top ten trends you simply cannot ignore this year.

From reduced technology budgets to navigating privacy concerns, join us as we explore the key trends that will define the trajectory of SaaS marketing in the coming year….

10 SaaS marketing trends for 2024

  1. The software recession in full swing
  2. Customer retention
  3. AI tools are taking over
  4. Video marketing
  5. SEO optimisation of product and feature pages
  6. Usage-based pricing models
  7. Unbundling strategies
  8. Account-Based Marketing (ABM)
  9. Native advertising
  10. Focus on privacy

Trend #1 The software recession in full swing

The Saas industry is currently experiencing a prolonged ‘software recession’, which has persisted for the past few years now. The software recession involves companies across sectors having to reduce expenditures on IT services, products, and software, a downturn that has notably impacted startups engaged in selling to other B2B SaaS startups. Reduced budgets mean businesses are forced to review their toolstacks and make necessary cutbacks. Don’t let this be you! There’s no better time than the present to up your retention marketing game and communicate the value of your service offering to your existing customer base.

Trend #2 Customer retention

In light of the current software recession and growing competition, SaaS companies are ramping up their customer retention strategies. Customer retention is especially important as marketing budgets become tighter and customer acquisition costs brands more than retention. Retention not only safeguards against economic uncertainties but also creates opportunities for upsells. SaaS companies identify segments of their user base with the potential for additional features or advanced plans.

Implementing advanced personalisation techniques, SaaS companies tailor user experiences based on individual preferences and behaviours. Utilising data analytics, they offer targeted recommendations, customised features, and personalised communication, enhancing overall user satisfaction. Additionally, revamping email strategies, brands prioritise value-driven content in their communication. Instead of mere promotional messages, they provide insightful content, product updates, and exclusive offers, fostering a deeper connection with users.

Trend #3 AI tools are taking over

The AI software market is predicted to reach a value of $1,000 billion by 2032 and will become increasingly important for SaaS companies. In fact, the industry has already become heavily dependent on Artificial Intelligence (AI) and Machine Learning (ML) for multiple purposes. Recognising this potential, SaaS companies are leveraging AI and ML to enhance user experiences. Trends include the use of AI in chatbots and various applications such as data-driven marketing campaigns, hyper-personalisation, dynamic pricing, content curation, detailed customer profiling, and predictive analytics.

Trend #4 Video marketing

Video marketing has long been a popular format for marketing, however, consumers are becoming increasingly reliant on videos to make purchasing decisions. In 2023, people watched on average 17 hours of online videos every week and were 52% more likely to share video content online. As such, video content is an effective tool for promoting new products and features, developing use-cases and how-to guides, addressing common customer queries, creating client testimonials, building a brand story, and much more.

Trend #5 SEO optimisation of product and feature pages

SEO is by no means a new fad or trend but a sustainable marketing strategy that is proven to reduce customer acquisition costs (CAC) and increase customer lifetime value (CLV). It’s no surprise that more and more SaaS businesses are investing in SEO!

Aligning your core product and feature pages with relevant keywords and search intent can improve higher visibility in the search engine results pages (SERPs), getting your brand in front of your target audience and driving qualified organic traffic to your site. Want to learn more? Check out our comprehensive guide to SaaS SEO.

Trend #6 Usage-based pricing models

In the current economic climate, many SaaS companies are switching to a usage-based pricing model to accommodate consumer preferences. Usage-based pricing allows customers to pay based on actual usage, providing flexibility in adjusting costs according to their needs. In uncertain economic times, this flexibility can be attractive to businesses looking to manage expenses more effectively. Similarly, usage-based pricing ensures that customers pay for the value they derive from the software. This alignment of cost with actual usage helps in justifying expenditures, making the pricing model more transparent and customer-friendly.

For small and medium-sized businesses in particular, usage-based pricing is more affordable, as they can start with minimal usage and scale up as their operations grow. This allows businesses to adopt SaaS solutions without large upfront costs and reduces barriers to entry.

Trend #7 Unbundling strategies

Similarly, an unbundling strategy involves breaking down a comprehensive product or service into individual components or features and offering them as standalone products. While bundles can be beneficial for customers that require a variety of product functions, unbundling is often employed by businesses to provide customers with more flexibility, allowing them to choose and pay only for the specific functionalities they need. By doing so, software providers can cater to diverse customer needs, facilitate agile development, and create opportunities for targeted marketing and pricing models.

Trend #8 Account-Based Marketing (ABM)

Account-Based Marketing is widely used across the B2B world with 94% of marketers recognising ABM as extremely or very important to the success of their business objective. Not to mention, 87% of B2B marketers report higher ROI from ABM initiatives over any other marketing investment.

As such, SaaS companies are embracing Account-Based Marketing (ABM) to enhance customer engagement and revenue growth. ABM enables personalised and targeted outreach to specific high-value accounts, fostering stronger relationships and increasing conversion rates. With the evolving competitive landscape, ABM allows SaaS companies to align their marketing efforts precisely with the needs and challenges of key accounts. This strategic approach enhances efficiency, maximises ROI, and ensures a more tailored and impactful customer experience, making ABM a vital tool to navigate the complexities of the market and stand out in the crowded digital landscape.

Trend #9 Native advertising

In line with prioritising user experience, native advertising has become a popular method among SaaS marketers to provide a seamless experience that presents promotional content in a format that mirrors the platform’s natural content flow. In the highly competitive landscape, native advertising offers a non-disruptive way to capture the audience’s attention, fostering engagement without appearing intrusive. By blending with the platform’s aesthetics and functionality, native ads overcome banner blindness and ad fatigue, enhancing the likelihood of user interaction. Not to mention, precision audience targeting adds an extra layer of personalisation for even higher conversion rates and user acquisition.

In the context of SaaS, where conveying the value and functionality of complex solutions is crucial, native advertising allows for more in-depth storytelling. Whether through sponsored articles, videos, or interactive content, you can leverage native advertising to educate prospects about your products subtly.

Trend #10 Focus on privacy

In response to the decline of third-party cookies and the rise of privacy regulations, SaaS marketers are adopting privacy-centric strategies. This shift involves prioritising first-party data, leveraging cookieless technologies, obtaining explicit consent, and enhancing data security measures. Emphasising privacy not only builds trust with users but also ensures compliance with evolving data regulations, fostering transparency that can set SaaS companies apart in a competitive market. Tactical approaches include implementing transparent privacy policies, securing explicit consent, educating users on data rights, focusing on first-party data, and communicating a commitment to data privacy in marketing materials. This all requires specialist analytical expertise and the right tool stack!

Let’s put all this into practice…

All in all, navigating the ever-evolving realm of SaaS marketing demands a keen understanding of the trends reshaping the industry in 2024. From prioritising privacy to embracing cutting-edge technologies, these trends are pivotal in crafting effective strategies that resonate with today’s audiences. To delve deeper into these insights and equip yourself with the tools to stay ahead in SaaS marketing, we invite you to explore our latest eBook that explores the marketing strategies behind the health application market. While specific to the health industry, many of the strategies included in our report can be applied across the SaaS industry.

Alternatively, please get in touch with our teams to find out how we can help you jump on these trends and take your SaaS marketing to the next level.

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