SaaS Marketing Funnel: Building Out a Killer Funnel

SaaS Marketing
November 16, 2023 7 min
Justin Berg
Justin Berg

Founder of Rock The Rankings

By successfully navigating customers to the bottom of the sales funnel, businesses can accelerate their growth and scalability.

Broken funnel, or even worse, no real funnel? Then you’re likely struggling to drive demo and sign-up growth.

In this article, we’ll dive deeper into creating and optimizing a SaaS sales funnel, ensuring marketing success and reinforcing the foundation of your business – customer acquisition through a winning marketing funnel

What is a SaaS Marketing Funnel?

The B2B SaaS marketing funnel is a structured model that outlines the stages a potential client navigates, starting from their first interaction with a SaaS offering to the point of purchase.

This funnel metaphorically maps out the voyage your prospective B2B customers undertake, beginning with an introduction to your solution and culminating with their allegiance to your brand.

Differences Between SaaS and Traditional Marketing Funnel

When compared to traditional marketing funnels, SaaS marketing funnels exhibit a few distinctive aspects:

  1. Focus on retention: In contrast to traditional marketing funnels that mainly focus on acquiring customers, SaaS marketing funnels emphasize customer retention in addition to acquisition, since recurring revenue is vital in this business model.
  2. Trial and freemium models: SaaS businesses often include trial or freemium versions of their software, which function as an additional stage in the marketing funnel that bridges the gap between awareness and conversion.
  3. Onboarding process: SaaS companies need to pay close attention to the onboarding process, as it is an essential step within the funnel to ensure customers’ successful adoption of the solution.
  4. Continuous engagement nurturing: Unlike traditional marketing funnels, where customer interaction typically decreases after a purchase, SaaS funnels require continuous engagement nurturing to maintain customer loyalty and secure long-term relationships.

5 SaaS Marketing Funnel Stages

In this section, we dive into the five essential stages of a SaaS marketing funnel, which helps to understand and optimize the customer journey for a subscription-based business:

1. Awareness

In the Awareness stage, potential customers discover your SaaS product or service.

The main focus is to raise brand awareness, generate leads, and drive interest in your offering. At this stage, marketing activities may include:

  • Content marketing
  • Search engine optimization (SEO)
  • Social media marketing
  • Paid advertising (Google ads, social media ads)

2. Engagement

The Engagement stage is about building a relationship with potential customers and nurturing their interest in your product. It includes activities such as:

  • Email marketing
  • Webinars and video content
  • Social media engagement
  • Blogging and guest posting
  • Personalized content

3. Desire

This stage, known as the Desire stage, is where prospects are warmed up and become more interested in your SaaS offering.

They may be ready for a demo, a free trial, or to learn how your product can solve their pain points. In this stage, activities could include:

  • Product demos
  • Free trials
  • Case studies
  • Social proof and testimonials
  • Sales calls and meetings

4. Conversion

After successfully nurturing the prospect’s interest and desire, they are now ready to become paying customers.

The Conversion stage aims to finalize the prospect’s decision and make them a paying customer. To do that, you may use:

  • Targeted landing pages
  • Clear pricing structure
  • Seamless onboarding process
  • Sales follow-up and customer support

5. Retention

With the subscription-based SaaS model, it’s crucial to retain customers and increase their lifetime value. The Retention stage focuses on maintaining customer satisfaction and encouraging loyalty. This includes:

  • Regular customer feedback
  • Customer support and troubleshooting
  • Continuous product improvement
  • Promoting upgrades and upsells

These five stages of the SaaS marketing funnel serve as a blueprint to design an effective strategy that guides prospects from discovery to loyal customers.

Building a Winning SaaS Marketing Funnel Strategy

The SaaS marketing funnel is essential for effectively guiding customers through the various stages of their journey.

TOFU (Top of the Funnel)

In the top of the funnel, the focus is on attracting and generating awareness among potential customers.

Here, you should aim to create and distribute high-quality, relevant content that provides value to your target audience.

  • Blog posts can spotlight industry trends, provide tips, or explore common pain points.
  • E-books and whitepapers dive deeper into topics, offering actionable solutions.
  • Webinars and podcasts allow for engagement and can be shared easily on social media.

Remember, the objective is to raise brand awareness and establish your organization as a relevant and authoritative figure in the market.

MOFU (Middle of the Funnel)

The middle of the funnel centers around educating and nurturing potential customers.

Your content should help guide them toward understanding the value of your SaaS solution and encourage further engagement.

  • Offer case studies and testimonial videos to showcase the benefits and success of your solution.
  • Provide email nurture campaigns that share relevant content and encourage users to explore your product’s features.

It is essential to create content that aligns with the prospect’s stage in the buying process, addressing their specific needs and concerns at this stage.

BOFU (Bottom of the Funnel)

The bottom of the funnel aims to convert prospects into actual customers. At this stage, your content should focus on one thing: driving action.

  • Focused, targeted demos and free trials allow prospects to experience your product firsthand.
  • Special offers and promotions can provide motivation for prospects to make a decision.

It’s crucial to continuously track and analyze your prospects’ interactions to refine your strategy and convert them into loyal paying customers.

Optimizing Your SaaS Funnel for Better Conversions

Boost Awareness with TOFU

To optimize your SaaS marketing funnel for better conversions, start by focusing on the top of the funnel (TOFU) to boost awareness.

Create and promote valuable content like blog posts, videos, and webinars to attract potential customers, and use relevant keywords to improve your search engine visibility. Optimize Your Content

Ensure that all of your content is high-quality, engaging, and tailored to the customer’s needs at each stage of the funnel.

Use analytics to track visitor behavior and determine which pieces of content perform best. Continuously update and refine your content strategy based on these insights to deliver better conversion rates.

Target the Most Valuable Leads

Identify your most valuable leads using SaaS funnel metrics, such as lead score, conversion probability, and customer lifetime value.

Focus your marketing and sales efforts on these leads, as they have a higher potential to become paying customers.

Qualify Leads

It is essential to qualify leads by assessing their interest level, budget, and timeline for decision-making.

Use forms, surveys, and email marketing to gather this information and segment your audience accordingly, ensuring that you are addressing the unique needs of each group.

Improve Lead Nurturing

Develop a strong lead nurturing process by sending tailored email campaigns, providing valuable content, and offering personalized demos or consultations.

Monitor open and click-through rates to refine your messaging and improve your targeting.

Make the Most of MOFU

At the middle of the funnel (MOFU), focus on lead conversion by using retargeting ads, gated content, and targeted offers.

Measure which tactics work best in converting leads to customers and refine your approach accordingly.

Close the Deal and Keep Them Coming Back

To close the deal and retain customers, offer seamless onboarding, continuous support, and regular product updates.

Keep customers engaged by sharing success stories, hosting webinars, and providing ongoing educational content to drive loyalty and encourage upsells or expansions.

Measure Success

Track key performance indicators (KPIs) and SaaS funnel metrics, such as conversion rates, customer acquisition cost (CAC), and customer lifetime value (CLTV), to measure the success of your marketing, sales, and retention efforts.

Use these insights to optimize your funnel continuously, address areas of improvement, and increase conversion rates across the entire customer journey.

Key Takeaways on Successful SaaS Funnels

Inbound marketing plays a crucial role in building a successful SaaS funnel.

By focusing on attracting potential customers through content creation, social media, and search engine optimization, SaaS companies can effectively engage and convert prospects into users.

A successful SaaS funnel aligns marketing and sales efforts by organizing them into distinct stages, such as prospect identification, strategy development, and measurement of key performance indicators (KPIs).

Most Recent

Ready to build your SEO customer acquisition engine?

Book a 1-on-1 intro call with our founder that includes a FREE custom marketing plan. Start growing faster, today.

Copy link
Powered by Social Snap