The subscription economy has exploded over the last decade.
Top SaaS companies with flexible, innovative technologies are in high demand. The lower barrier to entry however, has created a myriad of competitive pressures on SaaS providers. To dominate their markets, tech companies must drive immediate and continuous value for customers.
Last week, I spoke with Nic Poulos, Principal at Bowery Capital, about how “Behavior Based Marketing” is changing the world. (The link to the podcast is below).
A Simple Example
Imagine if a SaaS company could identify a power user that loves 3 of their product features but doesn’t know about a 4th new feature. The company also knows that other power users in the same field used the 4th feature to achieve their quarterly business in one- third less time.
This information is easy to uncover using a platform like Totango, but to capitalize, the SaaS company needs to take immediate action. Using behavior based marketing, the company could send a personalized note to the user saying, “We noticed you use these 3 features, but there is another feature in your subscription that will help you reach your goals in a third of the time. Attached is a 2 minute video showing how it works. Click here to get started now!”
This method of “Behavior Based Marketing” is moving the needle in the SaaS world. Unlocking these hidden opportunities is a critical component to driving more renewals, upsells/cross sells, increasing trial conversion and making partnerships more valuable for everyone. Check out the full podcast below and let me know what you think.