Sr. Director, Marketing
Today marketers have moved to the forefront of change regarding how companies relate to clients and customers. New technologies allow for access to the sort of consumer metrics that marketing departments in the past could only dream of; today’s online marketers love Subscription as a Service (SaaS) because it is easy for them to get immediate feedback from customers, track their buying habits, and gain much more detailed insight into consumer behavior. What are additional benefits of SaaS for marketers and for their consumers? We spoke with some marketing gurus and experts to explore their perspectives on leveraging the intrinsic value of the Subscription Economy in today’s marketplace.
A Personal Connection
Matt Heinz, President of Heinz Marketing, has over 15 years of marketing, business development and sales experience. He describes how SaaS marketing makes it possible to create a more personal connection with customers.
The combination of buyer expectations and advancement of marketing technology means we can now have 1:1 relationships and conversations with prospects and customers at scale. We have incredible intelligence about what they’re doing, what they’re buying, their preferences, likes, dislikes, etc. There’s no excuse for not building a personal, direct relationship with each and every prospect and using a combination of predictive analytics, big data and marketing automation technology to improve the personalization, impact and action from our sales & marketing efforts.
This personal connection is important to consumers and gives them loyalty to the brand and the desire to market by word of mouth.
An Easy Sale
Not only does SaaS allow you to have a personal connection with consumers, but as a marketer it is a fairly easy model to sell. Peter Geisheker, CEO of The Geishshker Group Marketing Firm and nationally recognized marketing expert, explains why.
From a marketing standpoint, I find that it is easier to sell on a subscription model because people see a monthly payment as far more affordable and less financially painful than paying a larger upfront lump sum. People are going to think more about making a sizeable and more financially risky $120 payment today than they are about paying a small $10 per month subscription fee.
People are all about commitments that require little risk. SaaS is the perfect way for the consumer to get what they want, without the fear involved in making a big purchase.
A Captive Audience
As mentioned earlier, SasS creates an intimacy with customers. Kate Sirignano, founder of Image Marketing Consultants talks more about that intimacy creating a captive audience.
When looking at subscription based offerings, marketers can look at these as just another tool in the toolbox. They have a captive audience where they can test out new products and services, track sales and promotions, and customize offers better than ever before.
Once a consumer has subscribed, they become connected to the company instead of just making a one-time purchase and walking away.
Jim McDonald is the Director of Business Development for a Marketing Firm called Media Logic. McDonald says that SaaS is a great way to get quick and easy results.
When a consumer signs up for a subscription service, they immediately start a relationship with a company. This gives companies time to prove their value to consumers, which can be strengthened by factors beyond their main product/service, such as their customer service.
In a society that increasingly puts more value on instant gratification, immediate results are crucial.
Easy to Research
A good, intuitive subscription set up will make it easy for customers to do research about the company. Steve W Martin, founder of Heavy Hitter sales training program, which has helped over 100,000 salespeople become top revenue producers, shares why.
The customer will do more research up front and make their preliminary buying decision prior to ever speaking to someone at the company. This trend will only continue to grow in the future. Today, most of this research is done via a computer (desktop or laptop). Tablet and smartphone based research is growing exponentially and will be primary research platforms in the future.
People want to know exactly what they are getting. SaaS offers simple answers.
Subscription marketing create a more relevant message for your consumers, as Shel Holtz, principal of Holtz Communication + Technology discussed.
Digital and social media have irrevocably altered marketing, which can no longer be about sending messages you want audiences to hear. You have to be relevant, you have to be responsive, you have to be engaging and, more than anything else, you have to be helpful. If you don’t see your customers and prospects as partners, but merely as audiences, you’re toast.
Because of the instant and up-to-date information on the consumers, companies can stay in touch with their needs.
Tammy Sanders, owner of Direct Data Source, gives an example of how the subscription model is giving marketers easier brand awareness and exposure.
Someone that is loyal to Netflix might not be aware of Hulu or Vudu which are very similar products. Marketers can get a quick glance at their current client demographic. This can assist in easily targeting more like customers or the need to add some variation to target new/non-responding demographics.
Subscription as a Service works. It is an effective business model that will continue to grow as loyal consumers subscribe and connect.