The global Software as a Service (SaaS) market is booming. Since 2017, the industry has experienced a compound annual growth rate of 16.4%. And now, BCC research projects a total market share of $94.9Bn by 2022.1 But with increased revenue comes greater competition. To claim their share of the marketplace, SaaS companies must pursue bold strategies to reach more high-quality leads that are likely to convert.  

3 Reasons Why SaaS Companies Face Marketing Challenges

An Undefined Product and Market

  • What the product does
  • Who needs it
  • How it relieves common pain points

 

Customer Churn 

SaaS sales cycles are ongoing. Retaining existing users and swaying competitors’ customers to your side requires a clearly defined product, coupled with continuous optimization and customer outreach. 

 

 

A Short Sales Cycle

SaaS sales cycles are more unpredictable than with a physical product. Price, customer base, and product complexity can all shorten or extend the process. Here, annual contract value (ACV) plays a significant role.

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Erin McDonald
Business Development Strategist

Erin McDonald is a Business Development Strategist with a degree in Communications from Rutgers University. Fostering effective teamwork to drive results, she is able to solve tough problems and implement solutions that require strong intellectual abilities and rigor. In her free time, you can find her spending time with friends and family or at the gym.