Back in 2010, the former Twitter CEO Jack Patrick Dorsey posted about Instagram, a newly launched platform at the time and that tweet alone brought thousands of new users to Instagram. This is called influencer marketing.
Influencer marketing can be a powerful tool for SaaS (Software as a Service) businesses to reach their target audience and increase brand awareness. SaaS businesses typically offer services that can be a bit challenging to explain to a broad audience. Therefore, influencer marketing can help create a more personal connection with potential customers and showcase the benefits of the SaaS business model.
One way SaaS businesses can utilize influencer marketing is by partnering with industry experts or influencers who have a strong following in a particular niche. These influencers can create content and share their experience using SaaS. This can help build credibility and trust with potential customers who may be hesitant to invest in a new software product.
Another way SaaS businesses can leverage influencer marketing is by working with micro-influencers, who have a smaller but more engaged following. Micro-influencers often have a more niche audience, which can be beneficial for SaaS businesses targeting specific industries or audiences.
What is a SaaS Business?
SaaS stands for Software as a Service, which is a type of business model in which software applications are provided to customers over the internet. The software is hosted on the service provider’s servers, and customers access it through a web browser or other client application. SaaS businesses typically charge a subscription fee to provide access to their software, and the provider is responsible for maintaining and updating the application.
For example, Microsoft Suite is a SAAS business. It provides cloud-based versions of its popular productivity tools such as Word, Excel, PowerPoint, and Outlook through the Office 365 subscription service. Users can access these tools from any device with an internet connection and collaborate with others in real time. Microsoft’s business model is based on a subscription model, with pricing plans based on the number of users and features required.
What is Influencer Marketing?
Influencer marketing is a type of marketing that involves partnering with individuals who have a large following on social media to promote a brand or product. Influencers are paid or receive other incentives to endorse different products or services in front of their audience, with the goal of increasing brand awareness and driving sales.
How Effective is Influencer Marketing for SaaS Businesses?
Influencer marketing can be an effective strategy for SaaS businesses to increase brand awareness, generate leads, and drive sales. However, there are several factors to consider when determining the effectiveness of influencer marketing for a SaaS business. They are:
Choosing the right influencers
You should look for influencers who have a relevant audience, with interests and demographics that align with your target market. You should also consider the influencer’s engagement rate and the quality of their content, as these factors can impact the effectiveness of the campaign.
Having clear campaign goals
It is also important to have a clear understanding of your goals for the influencer campaign. Are you looking to increase brand awareness, generate leads, or drive sales? Different types of influencers and campaigns may be more effective for different goals.
Providing influencers with a clear message and call-to-action
You should provide influencers with a clear message and call-to-action for their audience. This can include providing influencers with promotional codes or links to track conversions, or creating specific landing pages for the campaign.
Leverage niche influencers
You can also consider working with niche influencers who have smaller but highly engaged audiences. These influencers usually have a more targeted following, which can result in higher conversion rates and more engaged leads.
Use micro-influencers for lead generation
Micro-influencers with highly focused followings can be effective for lead generation campaigns. They may not have the same reach as macro-influencers, but their audience tends to be more receptive to their recommendations.
Build long-term relationships with influencers
You can build long-term relationships with influencers by providing ongoing support and engaging with them on social media channels. This can help to establish the business as a thought leader in the market, and increase the likelihood of potential customers considering your product in the future.
Measure and analyze the results
You should measure and analyze the results of your influencer campaigns to determine their effectiveness. This can help to identify what worked well and what can be improved in future campaigns.
How to Find the Right Influencer for your SaaS Business?
Finding the right influencer for your SaaS business can be a challenging task, but there are several steps you can take to help identify and connect with potential influencers. Here are some tips:
Define your target audience
Before you start looking for influencers, it’s important to define your target audience. This will help you identify influencers who have a similar audience and can help you reach your ideal customers.
Research influencers in your industry
Use social media platforms like Instagram, Twitter, and LinkedIn to research influencers in your industry or niche. Look for influencers who are active in your market and have an engaged following.
Analyze their audience and engagement
Look at the influencers’ followers, engagement rate, and content, to ensure that they have an engaged and relevant audience. An influencer with a large following but low engagement rate may not be as effective as one with a smaller but highly engaged audience base.
Check for authenticity and credibility
It’s important to ensure that the influencers you work with are authentic and credible. Look for influencers who are genuine in their recommendations and have a track record of promoting high-quality products and services.
Use influencer marketplaces
Consider using influencer marketplaces like AspireIQ, Upfluence, and Influencer.co to find and connect with potential influencers. These platforms can help you identify influencers who match your criteria and streamline the influencer outreach process.
Reach out to influencers
Once you’ve identified potential influencers, reach out to them with a personalized message explaining why you’re interested in working with them and how your product or service can benefit their audience. Be clear about your expectations and what you are offering in return.
Monitor and measure results
It’s important to monitor and measure the results of your influencer campaigns to determine their effectiveness. Use analytics tools to track engagement, conversions, and other metrics to optimize your influencer campaigns and improve their ROI.
How Much Budget is Allocated for Influencer Marketing for SaaS Business?
All kinds of brands use influencer marketing. It shouldn’t be surprising to see some variation in how much money businesses spend on this form of promotion. Marketers spend more money when working with mega-influencers and famous people than when working with micro- or nano-influencers. Additionally, as was already stated, the expense of working with influencers will vary by platform. For instance, micro-influencers on Instagram charge $100-$500 per post, while nano-influencers charge $10 to $100. Additionally, macro-influencers charge $5,000 to $10,000 per post, while mega-influencers charge even more, at least $10,000. As a result, bear these figures in mind when setting a budget for influencer marketing.
However, a survey found that brands should allocate 25% of their digital marketing budgets to influencer marketing. Influencer Marketing Hub reports that 37% of the companies said their annual influencer marketing budgets are less than $10,000 while 30% said they spend $10K to $50K or more. The remaining 31% pay between $50,000 and $100,000, 10% between $100,000 and $500,000, and 4% over $500,000.
Top SaaS Companies Using Influencer Marketing
Here are some examples of the top SaaS companies that are utilizing influencer marketing:
HubSpot
HubSpot has collaborated with influencers in the marketing and sales industry, such as Gary Vaynerchuk, to promote their inbound marketing software.
Slack
Slack has partnered with influencers in the tech industry, such as Casey Neistat and iJustine, to showcase the benefits of their team communication and collaboration tool.
Asana
Asana has teamed up with influencers in productivity and leadership, like Marie Forleo and Laura Vanderkam, to demonstrate how their project management tools can improve team productivity.
Zoom
For the purpose of showcasing the advantages of their video conferencing platform, Zoom has collaborated with influential figures in the business and educational sectors, such as Matt D’Avella and The Happy Hour with Jamie Ivey.
Salesforce
Jill Rowley and Tiffani Bova, two prominent figures in the sales and marketing sectors, are just two of the influencers Salesforce has teamed up with to push their customer relationship management software.
Does Influencer Marketing Really Help the Sales Funnel for SaaS Business?
Yes, influencer marketing does help sales funnel for SaaS business. According to a study by Linqia, 39% of marketers surveyed said that influencer marketing helps to improve brand awareness and 36% said it helps to generate leads. Additionally, a survey by Influencer Marketing Hub found that 63% of consumers trust influencers’ opinions of products more than what brands say about themselves.
Influencers can create content that showcases the benefits and features of the SaaS product, which can drive traffic to the website and increase conversions. Overall, influencer marketing can be a valuable tool for SaaS businesses to build trust, increase brand awareness, and drive conversions in their sales funnel.
Statistics of Influencer Marketing in SaaS Business
Here are some in-depth statistics regarding influencer marketing for SaaS businesses with the sources mentioned:
- According to a study by Mediakix, 89% of marketers say that influencer marketing ROI is comparable to or better than other marketing channels.
- A survey by Linqia found that 39% of marketers said that influencer marketing helped to improve brand awareness, and 36% said it helped to generate leads.
- A study by Tapinfluence found that influencer marketing content delivers 11x higher ROI than traditional forms of digital marketing.
- 3% of consumers trust influencers’ opinions of products more than what brands say about themselves, according to a survey by Influencer Marketing Hub.
- A survey by Grin found that 17.2% of marketers planned to increase their influencer marketing budget in 2021.
Wrapping up
Influencer marketing can be a valuable tool for promoting SaaS businesses. By partnering with the right influencers and creating compelling content, you can increase brand awareness, drive traffic to your website, and generate more leads and conversions. However, it’s important to approach influencer marketing with a strategic and thoughtful mindset, and to choose influencers who are aligned with your brand values and target audience.
