One of the world’s most famous personalities, Elon Musk, once said, “Brand is just a perception, and perception will match reality over time.” And the easiest way to be close to the reality in the SaaS landscape, especially in a product-led growth marketing scenario, is to trust the product to bring in customers rather than spending a massive amount of marketing dollars to acquire customers.
Many marketers often prioritize ads and other marketing outreach activities over a product-first approach despite the benefits. If you consider your product the hero of your brand’s growth story, you can better determine your key target audience.
Selling a SaaS product can become cumbersome if customers’ product intent and motivations are not considered. This is especially valid in a product-led growth marketing landscape. Leads generated through a product-first approach almost always yield a better result in a conversion. By making the product core of the marketing strategy, marketers can expect faster revenue generation as customers can evaluate the benefits better. But the question is, how?
Product-led growth marketing: How it helps
Usually, a SaaS business operates by offering a freemium subscription to its users. It generates hundreds of potential customers, which marketers qualify as marketing leads. Now, these leads can be taken closer to the conversion cycle by either asking them to buy the paid subscription or upselling a product upgrade from the basic tiers. Getting them converted becomes easier as they have already used the trial version.
Understanding customer motivation and purchase intent become more convenient this way. Most marketers utilize the traditional route to run marketing campaigns, both paid and organic, to generate leads. This results in putting in a lot of effort and spending dollars on the ads. A product-first approach reduces this effort and expense by focusing on people most likely to convert. It also drives the acquisition cost lower while improving the revenue efficiency.
With the product as the hero, other targeted marketing resources can act as supporting cast. Product-led leads qualify to smoothen out the creases that marketing campaigns have by tracing the reliable conversion indicators. Further, marketers can now use data-driven indicators of customer intent by analyzing the product-usage data, see our previous post here. Once customer attributions are available, leveraging marketing resources like case studies, FAQs, and other targeted communications becomes more convenient.
PQLs: The introduction to outcome-based lead generations
There is another benefit to using product data as a metric for lead qualification. Primarily, a brand qualifies leads by tracking the MQLs, based on a preset range of criteria. The sales team then validates the SQL potentials once they receive the customer details. However, the process often creates a kind of diverging incentive for both teams. Why? Because MQLs are a good indicator of customer interest and intent. Yet, they often fail to understand the customers’ willingness to make a purchase. Consequently, even with a definitive quantity of leads generated, quality becomes an issue for eventually making the sale.
Product-led marketing, however, irons out the issue effectively. A product-first approach can help marketers to identify profile fit and value derived by the customers in addition to the usual interest and intent. Subsequently, it becomes easier to convert these customers by capturing the usage data and understanding customers’ desire to convert.
By making the product the hero, marketers can save not only money but also time and effort while improving the conversion ratio. And for a SaaS brand, it makes a world of difference in maintaining sustainability without compromising the overall ROI.