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Strategy & Planning Updated on: Aug 22, 2023

Increasing your ROI with email marketing for SaaS businesses

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Email marketing has long been a staple in digital marketing, and its effectiveness as a user acquisition method remains undeniable, particularly in the case of B2B markets with small lead pools. For B2B SaaS companies, email marketing holds immense potential for increasing ROI by retaining customers and reducing the cost of acquiring new ones.

By establishing and nurturing customer relationships through relevant information, support, and product updates, SaaS businesses can foster user loyalty while simultaneously driving sales even for enterprise clients. Moreover, email marketing provides valuable insights into the effectiveness of the strategy through delivery, viewing, and click reports. A well-executed email marketing campaign can enhance retention rates and boost sales through the provision of special or exclusive content and conditions.

An essential customer retention strategy

To delve into this strategy further, it's essential to grasp a macro marketing concept: retention. In the realm of digital marketing, companies, especially B2B SaaS companies, rely heavily on customer retention strategies to drive growth and profitability. Acquiring new customers is undoubtedly important, but retaining existing customers is equally crucial, if not more so. B2B SaaS companies often face the challenge of working with smaller lead pools and longer sales cycles. Therefore, investing in customer retention efforts becomes a strategic imperative.

Why email marketing?

While email marketing is commonly associated with lead generation, it plays a vital role in nurturing customer relationships and enhancing brand loyalty.In this context, email marketing emerges as a powerful tool for B2B SaaS companies. Email marketing allows companies to engage with their existing customer base, providing them with relevant and valuable content that addresses their pain points, offers solutions, and showcases new features or updates. By consistently delivering valuable information and demonstrating a deep understanding of their customers' needs, B2B SaaS companies can foster loyalty and encourage customers to remain engaged with their products or services. With email marketing, you have the opportunity to stay top-of-mind with your customers and reinforce your value proposition, leading to increased customer satisfaction and reduced churn rates.

Unlike B2C companies that often target a wide consumer audience, B2B SaaS companies can leverage email marketing to reach a highly targeted group of decision-makers, such as business owners, executives, or IT managers. Through email campaigns, B2B SaaS companies can tailor their messaging to address specific pain points and showcase how their software or services can solve the unique challenges faced by businesses in the B2B space.

Is email marketing worth it in 2023?

Knowing that the for 2025 is to reach 4.59 billion email users, this communication channel is certainly one of the ways to reach thousands of potential customers directly.

In addition to reaching a large audience, it is a relatively low investment compared to advertising on websites, ads, banners, or sponsored ads. With a good email marketing campaign, you can retain all the attention of the lead or prospect as when the message is opened, it takes up a good portion of the screen of the device, adapting to cell phones, notebooks, and tablets. While ads on site pages and social media feeds, pop-ups, floating formulas, or other advertisements usually end up distracting and diverting potential customers from the actual content, this is less likely to happen when viewing an email.

Email is essential for sales

Despite many critics commenting that email does not work or is dying, marketing campaigns are increasing their importance in customer retention and acquisition.

In a 2022 Hubspot survey, email is listed as one of the biggest ROI generators in the market, producing 36 dollars for every 1 invested. This only happens because email is a direct form of communication. 

Email is an exceptionally effective medium as it enables a higher degree of personalization compared to other marketing channels. The content and subject of the email can be tailored to specific audiences, enticing them with relevant content aligned with their individual interests and preferences regarding the product or service offered.

That is, while offering promotions and content, you can foster user loyalty with special or exclusive content and conditions for those engaged with the brand.

In addition to offering exclusive promotions and offers, email can also be used to give feedback to customers, such as:

  • Weekly news summaries
  • Account details
  • Order or process tracking
  • News about the brand

Email marketing as a demand generation tool

In addition to retention, email marketing can also play a pivotal role in customer acquisition for B2B SaaS companies. By carefully segmenting their email lists and crafting personalized messages, B2B SaaS companies can effectively nurture leads and guide them through the sales funnel. Email campaigns can be designed to provide valuable information, case studies, or success stories that demonstrate the benefits of the company's software or services. Additionally, B2B SaaS companies can leverage email marketing to offer exclusive promotions, free trials, or demos that entice potential customers to try their offerings.

Email marketing for B2B SaaS companies goes beyond simply sending out promotional emails. It involves building strong relationships, fostering trust, and positioning the company as a thought leader in the industry. B2B SaaS companies can use email campaigns to share industry insights, provide educational content, and offer valuable resources that help their customers succeed. By positioning themselves as trusted advisors, B2B SaaS companies can strengthen their customer relationships and create a sense of partnership rather than a transactional association.

Don’t worry too much about selling

The goal of your email campaign may be to acquire customers, that is, to sell. However, sending too many messages talking only about prices can seem like spam and not attract the customer’s attention, especially if we are considering smaller lead pools in B2B, where frequency saturation can cause a lack of interest or overall disengagement. It is important to adopt a more personalized approach and show the customer that the company values the relationship with them.

An effective email marketing strategy involves sending relevant and interesting content, such as:

  • Information about new products and services
  • Useful tips
  • Upgrades for loyal customers

In addition, it is important to segment the email list based on customers’ interests and behaviors, so that messages are directed and personalized for them.

By adopting a more personalized and segmented approach, the company can create a stronger and more lasting relationship with customers, which can lead to greater loyalty and long-term sales.

For a guide on creating valuable content that’s aligned with your audience’s needs at every stage of the funnel, check out our funnel content planning template here.

In what type of business do we use email marketing?

Email marketing can be effective in various segments, depending on the campaign’s goal and the target audience planned to reach. Imagine a SaaS company that offers project management software tailored to creative agencies. Their target audience includes marketing teams, design studios, and advertising agencies looking to streamline their project workflows.

To attract potential customers and nurture leads, the SaaS company creates an email marketing campaign with a series of informative and engaging content. They segment their email list based on their audience's interests and needs, ensuring each recipient receives relevant content. The campaign would include an introduction email, use case stories, a webinar invitation or a product demonstration, a limited-time offer, an onboarding email and user education documents, and a feedback survey. 

By executing this strategy, the company establishes meaningful connections with its target audience, effectively driving customer acquisition and retention. Email marketing is effective in several segments. However, personalized planning of each campaign is necessary to meet the specific interests of the target audience.

It is important to remember that the success of email marketing depends not only on the campaign’s content but also on the quality of the contact list and the frequency and timing of sending emails. For that, having a quality segmentation strategy is crucial. 

Want to get more results on your email marketing strategy? How about checking out these related articles: 

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