How to Boost your SaaS with Promotions?
In this article, you will learn the top promotion ideas for SaaS (Software as a service) businesses. You will see:
- Examples of successful SaaS promotions.
- How to implement SaaS promotion yourself.
Let’s dive in.
Whether you are already running a subscription business or just thinking about it, there are 2 questions you probably ask yourself all the time:
- How to increase MRR (Monthly Recurring Revenue of all paying customers)?
- How to decrease the churn rate (Number of cancellations in a period / Total number of subscriptions in that period)?
Of course, there are many factors that affect both. Today we will deep dive into your promotional strategy for your SaaS.
You probably already know what the different subscription pricing strategies are, whether it is landing point offering, showcase offering, beacon offering, K.I.S.S., or any other fancy-sounding name and you have probably already read all possible articles about freemium and free trials. It might already seem a bit overwhelming and complex to you…
Keeping your prices smart – the first step to a great SaaS promotional strategy
To tell you the truth, the more sophisticated pricing strategy, the more your business can benefit from it, as long as it is continuously being measured and optimized and does not over-complicate it for the user. All you want is to get as much as your clients are willing to pay for your solution (without discouraging new customers with your prices). You should keep your prices at the sweet spot to establish a long-term relationship with your customers and keep them loyal.
How to manage a complex pricing scheme without complicating it for the subscribers?
Let’s start simple – your pricing strategy should go hand in hand with a promotional strategy. You should first establish set prices for basic packages that are easily understandable for the customers and bring you the desired level of income. Then, for different segments, you could vary those prices with your promotional strategy, to fight churn, to increase your MRR, and to gain loyalty.
Examples of Promotion Ideas from SaaS we all know and love
As a subscription business, your marketing strategy should not be limited to basic pricing. Just like any product- or service-selling company, you can run promotions, implement loyalty programs, distribute vouchers, and be creative.
Many subscription businesses, whether it is SaaS, PaaS, magazine subscription, gym subscription, beauty boxes, or all-boxes, already do it; here are a couple of examples:
Promotion Ideas for SaaS
Possibilities for promotions are limitless, so we would like to give you a few inspirations, based on the purpose:
#1 SaaS Promotion – Acquiring new clients
If you want to attract new customers, it is possible to offer discounts on subscription, free trials, and vouchers. This offer could be limited in time, to increase interest in the periods of lower interest or for specific customer segments you want to enter. Time limitation of the offer helps you fight promotion fraud – users of your subscription cannot timelessly use free trials/discounted offers by registering under different names because the offer will have an expiration date.
Another benefit is – if those discounts are only for a limited period of time and not for all customers – it should not change your brand positioning and your price positioning, which is important. You do not want your clients to think that your basic prices are “too high” in case there is no promotion currently going on.
#2 SaaS Promotion – Rewarding customers
If your aim is to offer something nice to customers, you could offer a loyalty program – the longer they stay with their subscription, the cheaper it would get; they could possibly get subscription plan upgrades free of charge, special training, collect points they can use to pay their subscription, etc.
#3 SaaS Promotion – Upselling your portfolio
If you'd like to interest users in using the full functionality fo your service, you could offer a temporary subscription plan upgrades to existing customers, either by giving them a special code (voucher) they could pay with or by running an automated upgrade for a specific period of time.
With those (and other) promotional mechanisms you can increase the MRR, decrease the churn and gain loyalty without changing the basic pricing of the subscription. You can segment the customers or potential customers, target them via different channels with your limited-time offerings, and measure the response.
How to implement a complex promotional strategy in the SaaS environment?
Voucherify can support your subscription business’ omni-channel, personalized promotional strategy. We offer built-in reporting, great customer support, and close to no time of implementation. We will happily support you and your business in reaching your business goals.
Start running promotion for your SaaS