SaaS Marketing - Blogging, Social and Search

SAAS MARKETING:BLOGGING, SOCIAL & SEARCH

Gilad David Maayan

IGT SaaS WG Meetingwww.cloud.org.il

http://www.cloud.org.il/

Agenda1. Online Marketing Basics: Acquisition, Conversion, Retention2. The SaaS Marketing Process3. Measuring ROI of Online Marketing4. How Blogging, Social and Search are Used in SaaS

A Bit About Me – Gilad David Maayan• Former SEM and Content Manager of GigaSpaces• (cloud application server & data grid vendor)

• Helped CTO build a leading blog for software architects• 10 years’ experience in marketing and technical writing• Worked for Oracle, Check Point, Amdocs and over 50

other technology companies• Won 3 international awards for tech. communication• Now specializing in SaaS marketing and social content

For more info, see my LinkedIn Profile

Online Marketing Basics


• Definition: Getting people to engage with your web presence

• Good acquisition: Getting potential customers to visit your site

• Bad acquisition: Getting irrelevant visitors who become low-quality leads

• Acquisition cost: The money you have to spend to get a visitor. Examples:• Banner advertising: $30 per thousand

impressions * 1% clicks = $3 per visitor• Pay Per Click: $4 per click = $4 per visitor• Search Engine Optimization: $800 per month

to get 1,000 visitors = $0.8 per visitor


• Common SaaS acquisition methods:• Blogging• Micro-blogging – Twitter, etc.• Social networks – Facebook, LinkedIn, etc.• Media sharing – YouTube, Flickr, SlideShare• Bookmarking and popularity sites – Digg,

StumbleUpon, Delicious• Public relations• Search Engine Optimization (SEO)• Paid online advertising – PPC, banner ads• E-mail campaigns• Affiliate marketing


• Definition: Getting online visitors to perform a desirable action

• Typical conversion actions:• Download a whitepaper• Sign up for a newsletter• Sign up for a free trial• Sign up for your service• Sign up for your service

and actually pay for it


• Conversion goal: A page on your site which users reach when they convert (thank you page)

• Conversion rate: What % of your visitors performed the conversion action

• Conversion funnel: Path of conversion actions that leads to a desired outcome

• For example, of all website visitors:• 4% click “sign up for free trial”• 80% of those complete the signup process• Conversion of visitors to leads: 3.2%• 70% of signups start the trial• 5% of those sign up for a paid plan• Conversion of leads to sales: 3.5%


• Common ways to improve conversion for SaaS products:• Doing a better job at acquisition• Optimizing your landing pages• Optimizing your signup/shopping cart

process• Improving your demo/trial offering• Improving your demo/trial experience• Offering a free/introductory plan or

improving the existing one


• Definition: Getting visitors to…• Keep in touch with you• Perform more conversion actions• Pay you more money

• Critical for SaaS, especially in a low-touch model

• Benefits of good retention:• Increases lifetime value per customer• Reduces churn• Builds a community• Increases customer satisfaction


• Common methods of retention for SaaS products:• Product blogs• Newsletters• Sales calls• Proactive customer support• Microblogging• Networking with existing

customers/prospects on social networks

Online Marketing

Process

The SaaS Marketing Process

Acquisition

Conversion

Retention

The SaaS Marketing ProcessStep 1: Core Assets + Roadmap•What do we bring to the table?

• Software, hosting, support, pricing model, brand

•What will we add to the product in the near future?•What are our key features?•What are our competitive advantages?•Different packages/plans for different market segments?•What is our demo/trial/evaluation experience?

The SaaS Marketing ProcessStep 2: Market PositioningGiven our core assets…•What is our market?•How can we credibly describe ourselves?

• e.g. “enterprise collaboration software”

•What do customers expect from our type of solution?•Who actually purchases this type of solution?•Who actually uses this type of solution, and how?•What are competitors offering?•How do we measure up?•What will make customers choose us?

The SaaS Marketing ProcessStep 3: MessagingGiven our market positioning…•What is our slogan/tagline?•What is our audience?

• B2B technical, B2B C-Level, consumer

•How should we describe our product?

• Terminology, tone, attention span

•Which features/capabilities should we focus on?•How should we pitch these features to customers?

The SaaS Marketing ProcessStep 4: ContentGiven our messaging…•Which content will interest our target audience?•Which search terms are used by our audience?•What content should be on our website?

• Homepage, landing pages, resources

•What content should be on our blog?•What content should we push to social media channels?•Who will produce the content?

• SMEs, writers/bloggers, marketing

The SaaS Marketing ProcessStep 5: AcquisitionGiven the content we have…•How do we drive traffic to our site and blog?•How do we achieve good search engine rankings?•How do we get people’s attention on social networks?•How do we achieve visibility on popularity/media sharing sites?•Are we getting the right kind of visitors?

The SaaS Marketing ProcessStep 6: Conversion and RetentionGiven the visitors we’ve acquired…•How do we get them to sign up or buy?•How do we keep them engaged if they’re not ready yet?•How do we get them to continue with us / upgrade / buy more?•What are they saying about us and what can we do about it?

The SaaS Marketing ProcessBack to Step 1•What can we learn from our new customers?•What can we learn from those who DIDN’T become customers?•What should we change in the product?• More coverage of customer needs• Improved positioning• Higher appeal => lower

acquisition costs

•How does this affect our positioning, messaging, content?

Four benefits of a holistic marketing process:1. You’ll know how to price your product, how to

present it on your site and what kind of trial/demo is most appropriate

2. You’ll know which search terms to focus on in Search Engine Optimization (SEO) and Pay-Per-Click (PPC)

3. You’ll know exactly what to write about in your corporate site, blog and other content channels

4. You can focus your efforts on the markets, products and packages that have highest revenue potential

The SaaS Marketing Process

Measuring ROI of Online Marketing

Overview of web analytics•Web analytics allows you to measure things like:• Number of visitors and visits to your site• Traffic sources (which sites visitors are coming from)

• Popular content• Bounce rates (% of visitors who left your site immediately)

• Conversion (% of visitors who completed a desirable action)

•You can use analytics to learn how to improve your site•But this WON’T tell you how much money you’re making


Using web analytics to measure ROI•To measure ROI, you need to measure actual revenue:• Per online visitor acquired• Per lead• Per new customer

•This requires translating CLICKS to CASH•This will allow you to know:• Your acquisition cost for visitors from each online channel• How much money you made off visitors from each channel• Which channels to focus on• How much to spend on each channel


The basic financial model: Lifetime Value/Customer (LTV)

( Total revenues per product per period- Total relevant variable costs )/ Number of customersx Number of periods they remain customers

= LTV (Lifetime Value per Customer)

Lifetime Value represents the amount of CASH your company will add over the course of time, by acquiring one customer.


Example: Calculating Lifetime Value for a SaaS customer

( $30,000 revenues per month- $10,000 server costs & support )/ 300 customersx 24 months .

= $1600 LTV


Translating LEADS to CASH: Value per Lead (VPL)

Lead-to-Sale Conversion * LTV = VPL

Example:

2% conversion * $1600 = $32


Translating CLICKS to CASH: Value per Visitor (VPV)

Visitor-to-Lead Conversion * Lead-to-Sale Conversion * LTV = VPV

Example:

4% conversion to leads * 2% conversion to sales * $1600 = $1.28

(So if you’re paying $1 per click, Google is getting 78% of your profits)

Blogging, Social and Search

Blogging, Social and SearchMore specifically…


Blogging Social

Public Relations

Search

Search Engine Optimization

(SEO)

Google AdWords

Corporate / Founder’s Blog

Product Blog

We’ll focus on…


Public Relations


Product Blog

How do these channels work together?

Your Site


(SEO)

Google AdWords


Public Relations


Product Blog

SEO, PPC, social networks, PR and Twitter generate traffic to your site.

Your Site Acquisition


(SEO)

Google AdWords

Acquisition

Acquisition Acquisition


Public Relations


Product Blog

Blogs and PR help SEO by attracting links; SEO drives traffic to your blogs.

Your Site


(SEO)

Google AdWords

Traffic

Traffic

Links

Links


Public Relations


Product Blog

Blogs feed content to social & receive traffic. Twitter also generates blog traffic.

Your Site

Traffic

Content


(SEO)

Google AdWords

Traffic


Public Relations


Product Blog

Blogs can also generate traffic through references in the blogosphere.

Your Site

Traffic


(SEO)

Google AdWords

Blogosphere


Public Relations


Product Blog

Blogs build readership, and gradually bring qualified visitors to your site.

Your SiteAcquisition


(SEO)

Google AdWords


Public Relations


Product Blog

Product blogs, Twitter and social networks are also used for retention.

Your SiteRetention


(SEO)

Google AdWords

Retention


Public Relations


Product Blog

Now we’ll go into a more detail about each of the channels below:•How it works•Investment required•How to measure ROI


(SEO)

Google AdWords

Blogging | Corporate Blog• Research the blogosphere, find a good niche subject• Start writing 2-5 posts per week on the subject• Read and comment on 50 leading related blogs• They’ll reference your blog => traffic• Plan your posts to include key SEO keywords

• Setting up the blog:• On Blogger/TypePad – a few hours• WordPress installed – 1-3 days

• Writing min. 2 posts / week (~1-4h / post)• Reading & commenting on other blogs (~2h / week)• Responding to comments (~1-4h / week)

+( Total blog visitors and subscribers * % who visit the website * VPV )+( % contribution of blog readership to purchase * purchases from blog readers * LTV )+( % contribution of blog subscription to purchase * purchases from blog subscribers* LTV )

For definitions of ROI terms, refer to slides 24-29

(Alternatively, personal Founder’s Blog)

ROI from direct

visitors

Indirect impact on

likelihood to purchase

Blogging | Corporate Blog

Example: 37signals Corporate Blog

Advertising (usually not

recommended)

Drives traffic to Product

Blog

Subjects that interest a

broad relevant audience

RSS subscription

& Twitter

Participation through

comments is crucial

Author (one of several)

Low-key corporate branding

Corporate call-to-action

(Alternatively, personal Founder’s Blog)

Blogging | Product Blog• Usually written by product team, embedded in site• Start writing 2-5 posts/week - product news, tips, etc.• Aim at retaining existing contacts & cross-selling• Focus on subjects users search for => SEO traffic• Recycle the content in your newsletter

• Setting up the blog:• On Blogger/TypePad – a few hours• WordPress installed – 1-3 days

• Writing min. 2 posts / week (~1-3h / post)• Responding to comments (~3-6h / week)

+( Total website visitors landing on blog * VPV )+( % contribution of blog readership to purchase * purchases from blog readers * LTV )+( % contribution of blog & newsletter subscription to purchase * purchases from subscribers* LTV )


Blogging | Product Blog

Example: 37signals Product Blog


Focus on product

features and benefits

Choose the product that interests you

RSS subscription

& Twitter

Links to knowledge

base

Blogging | Twitter• Post 140-character “Tweets” several times a day• Can be personal (“what I’m doing, check this out”) or

corporate (“our news, events and offers”)• Follow people from your industry, they’ll follow you• Use (sparingly) to drive traffic to blog and offers

• Write a good bio (1-2 hours)• Build a group of followers (ongoing)• Read Tweets and Direct Messages from

colleagues/prospects (~1h/day)• Tweet/Retweet 5-15 times a day (~1h/day)

+( Total website visitors originating from Twitter * VPV )+( Blog visitors originating from Twitter * % who visit the website * VPV )+( % contribution of Twitter interaction to purchase * purchases from followers * LTV )


Blogging | Twitter

Example: Freshbooks Twitter Page


Large base of followers

140-character bio

“Lists” - groups of

followers with common interests

Clear branding for quick

identification

Updates by SMS

Leveraging positive

customer Tweets

Customer support

questions

Special offers

Typically also links to blog posts and other

relevant content

Social | Facebook• Start a “Page”• Get people to “Like” it (1000+ and you’re in business)• Generate frequent updates to make it spread virally• Natural to connect your Page to your blog• Advanced: Facebook application => viral acquisition

• Some graphic design/minor web development• One-time effort to build initial fan base• Core content (from your blog, etc.)• Somebody to post regular updates & reply

• For ~1000 users – 2h /day• For ~5000 users – hire a part-time student

+( Website visitors originating from Facebook * VPV )+( Blog visitors originating from Facebook * % who visit the website * VPV )+( % contribution of Facebook interaction to purchase * purchases from fans * LTV )


Social | Facebook

Example: SalesForce.com’s Facebook Page

Pushing compelling

content

Contests to encourage

participation

Integration with media

sharing

Building a large fan

base Encouraging customer comments

Social | LinkedIn• Build company profile with the right keywords• Make noise and post content on large existing groups• Start a group, invite your team’s connections• Attract more members, post compelling content • Advanced: LinkedIn advertising, searching for leads

• Writing a good company profile (a few hours)• Getting your team to build connections (ongoing)• Activity on existing groups (~2h / day)• Managing your own group

• < 500 connections – 4h /day• > 500 connections – hire an agency

+( Website visitors originating from LinkedIn * VPV )+( Blog visitors originating from LinkedIn * % who visit the website * VPV )+( Direct leads from LinkedIn * VPL)+( % contribution of group membership to purchase * purchases from group members * LTV )


Social | LinkedIn

Example: Atlassian’s “Confluence Users” LinkedIn Group

Encouraging user

discussion

Sharing new product features

Building membership

Social | LinkedIn

Example: Weekly E-mail from SaaS Group

Below the fold, all recent

content

E-mail from highly trusted

sender

Essentially it’s a dynamic newsletter

Encourages click-through to discussions

Active discussions

on top

Social | StumbleUpon• Get the toolbar, start tagging good content• Connect to influential “stumblers” in your field• Once you have a reputation, tag your own content• Your friends notice your content and vote on it• Content might spread virally => thousands of visits

• Finding topics, writing profile (a few hours)• Tagging content on an ongoing basis (30 min. / day)• Networking with influencers, reviewing content

(4-6 hrs. / week)

+( Website visitors through StumbleUpon * VPV )+( Blog visitors through StumbleUpon * % who visit the website * VPV )


Social | StumbleUpon

Example: Profile of “Korayem”, Web Dev Enthusiast

Moderately influential,

344 followers

Websites he stumbled

upon

4K visits for this site. Some sites get 200K

Interested in cool/new web

dev stuff

Follow him and he might

follow you

Social | YouTube• Upload short videos – demos, presentations (<100MB)

• Create company profile and your own channel• Add videos to your channel (your own + others)• Make lots of friends• Invite them to see your videos, comment on theirs

• Create the videos (hopefully you have them already)• Create a profile and channel (a few hours)• Manage your channel (~2 hrs. / week)• Make new friends (one-time effort + ~2 hrs. / week)• Network, comment on other videos (~1 hr. / day)

+( Website visitors through YouTube * VPV )+( % contribution of video views to purchase * purchases from viewers * LTV )

The latter can be measured using the integration between YouTube and Google Analytics, released May 2010


Social | YouTube

Example: SalesForce.com Channel on YouTube

Videos updated every

few days

Big archive

Short and sweet

Social | YouTube

Example: SalesForce.com Channel on YouTube

Large subscriber

base

Encourage and reply to comments

Link to site (drives traffic)

Links to Facebook,

Twitter, etc.

Graphic call-to-action

(more traffic)

Social | Public Relations• Get a media list of industry journalists• Write press releases – customer wins, new products• Distribute to media list and follow up aggressively• Do editorial calendar research on your industry press• Submit vendor articles

• A full-service PR agency costs $3-20K p.m.• Just media list/editorial calendar costs ~$4000 p.a.• Just following up on PR costs ~$1000 p.m.• Writing a PR/article by a professional costs $200-600

+( Website visitors through industry sites that covered you or published your articles * VPV )+( % increase in direct traffic growth * VPV )+( % contribution to SEO efforts * website visitors through SEO * VPV )


Social | Public Relations

Example: Coverage of GigaSpaces by InfoQ

Industry terms in title, high relevance

Link to website using category

name (SEO)

Links drive traffic to

corporate site

Targeted professional publication

Potential for social sharing

Search | SEO (Search Engine Optimization)

• Optimize your site to prevent SEO roadblocks• Find 5-10 search terms to focus on

• High-profile terms – big, competitive, low conversion• Long-tail terms – small, non-competitive, high conversion

• Build landing pages with search terms in titles & text• Attract incoming links with the terms in the alias• A full-service SEO agency costs $200-1000 p.m.• Or, buy just technical site optimization and DIY:

• Find your top search terms and how you rank today• List yourself in directories, indexes and search engines• Improve site structure, add keywords to existing content • Do PR, blogs and add resources to your site

+( Total website visitors originating from search engines * VPV )+( Blog visitors originating from search engines * % who visit the website * VPV )-( Visitors from search engines before SEO program * VPV )



Example: GigaSpaces Ranking for “In-Memory Data Grid”


#1: HazelCast, small open

source solution

#2 :Oracle, the

heavyweight

#5: GigaSpaces

#3 and #4: news and

images

Major product category for GigaSpaces


Example: GigaSpaces Page Ranking #5 for “In-Memory Data Grid”


This page is part of GigaSpaces’

wiki documentation

Large content site with 1000s of

pages

Search term in title

Search term in summary

Search term in initial text

Link to corporate

site

“Real” content, over 500 words per

page

Search | Google AdWords• Use Keyword Tool to find all relevant search terms• Prioritize – for enterprise SaaS, use 50-100 terms• Divide into groups and write good ads for each group• Build relevant landing pages with strong call to action• Start advertising, test conversion and optimize

• A PPC agency costs ~$150-300 p.m. for small budget• Set AdWords budget: $500-1000 p.m. is reasonable• Even if you use an agency, you’ll need to invest in:

• Keywords research, reviewing/writing ads (~4-8 days)• Meetings and reports (~3h / week)• Auditing and monitoring the campaign (~2h / week)

•ROI is simple: Number of visitors * conversion to purchase * LTV•Check conversion, bounce rate and ROI per keyword•Find your few “gold keywords” and get rid of the rest•NEVER bid more than 70% of Value per Visit


Search | Google AdWords

Example: QuickBooks Pay-Per-Click AdQuickBooks

have bid their way to the top

Top ranking ads appear on top of results

QuickBooks is not in page 1 of the organic

results

The rest of the ads are

here

Title of ad repeats the search term

Text of ad states a benefit

and calls to action

Highly competitive

generic keyword

Search | Google AdWords

Example: QuickBooks Pay-Per-Click Landing Page

Short, clear message

Short form

ROI: % who click this * %

who purchase after trial

Short, clear message

Details of offer and key benefits

Objection handling (security)

Typically there are customer

logos for validation

Call to action – conversion goal is free

trial

More info below the fold

if you’re not convinced

Summary What you bring to

the table

How it’s perceived

in the market

How you pitch it to customers

Landing pages,

blog posts, press

releases

Gone full circle? Back to the

drawing board

Thank You!Reach out to me if you have any questions or comments.

Gilad David MaayanSaaS Marketing, Blogging and Social Content

Mobile +972-50-6570046E-mail [email protected] http://il.linkedin.com/in/giladdavidmaayan

SaaS Marketing - Blogging, Social and Search

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