The ROI of Marketing in SaaS
Technology and SaaS companies engage in a broad variety of marketing tactics, depending on the industry and customer base they serve. This typically includes (but is not limited to):
But before deciding where to invest and allocate budgets, how do technology marketers approach analyzing which tactics and channels will yield the highest ROI? According to recent data, statistics, and research, here is how technology industry marketers are approaching targeting their segmented audiences strategically...
Funnel Conversions
The rate at which marketing leads convert to sales is one of the most important metrics.
Funnel Velocity
It’s not just how many marketing leads convert, it’s about how rapidly they move through the sales cycle towards becoming actual customers.
Content Productivity
Tech companies are constantly creating content, so any marketing technology or tactic that helps streamline this process in terms of either cost or time provides significant ROI.
Revenue-to-Cost
Many marketers aim for a 5:1 revenue-to-cost ratio, meaning that for every one dollar spent on marketing, five dollars worth of sales should be directly or indirectly generated.
Overall Efficiency
Around 80 percent of marketers say that they value technologies like marketing automation, as they improve the overall efficiency of their marketing efforts.
Customer Acquisition Cost
One of the most important marketing (and overall) metrics for technology companies. The goal is to optimize how much marketing muscle is needed to acquire each additional customer.
Web Traffic
A longstanding but still effective, measure of marketing ROI for tech companies. Whether it’s social media campaigns or live events, driving to-of-funnel web traffic is still a top priority, and one of the key ROI metrics used by tech companies.
Lifetime Customer Value
In tech and SaaS, companies want to grow with their customers. That could mean selling additional licenses, services, or add-ons. Tech companies now aim part of their marketing at current customers, so that their lifetime value will increase steadily over time.