Has your B2B SaaS company ever wondered if it is targeting the right type of companies? Well, you need to understand that having a well-defined target audience for your offered product or service is more important than ever. No one can afford to target everyone anymore in today’s digital world. Especially, in the SaaS industry.
Many marketers still believe that targeting a specific market means that you are just excluding people who do not fit your criteria. However, that is completely wrong! Target marketing allows you to focus on your marketing objectives. Moreover, it allows you to operate your sales pitch in a specific market that is more likely to buy from you than other markets. This is a much more affordable, effective and efficient way to reach potential clients and generate new closed deals. If you clearly define your target audience, it is much easier to determine where and how to market your company.
But, B2B SaaS companies tend to dismiss the importance of market research. When they first think of a business idea, spending hours on market research is the last thing that comes in their mind. Most businesses nowadays would rather start making and selling products right away than think about the importance of conducting market research before that.
Market research isn’t just for big businesses. No matter what size your company is, whatever stage you are at and whatever type of business you have, this kind of research is vital.
Still having doubts about why it is important to invest in SaaS market research? Let us elaborate.
How you can find your top clients using market research?
There are many platforms that help you to develop a strong understanding of your top 3 ideal clients in no time. Likewise, you will be able to familiarize yourself with your industry and discover what are their short and long-term pain points and business objectives. This will be a great foundation to check if your service solves any of those obstacles.
With so much information available, targeting your top clients has never been so easy! Identifying your Ideal Client Profile (ICP) and defining the best approach to them is something you need to do on a regular basis.
Finally, after the market research is completed, it will become clear to you who you want to reach out to (your target customers), where you can reach them (your marketing channels), and what their interests and pain points are. Once you have defined these, it will be way easier to spot many opportunities:
- Understanding who your customers are and their demographics can help you find other SaaS businesses that serve them.
- Knowing other products and services that your customers tend to buy can help you to come up with add-ons, product bundles, and even cross-product sales and upsells.
- Discovering the geographical areas where most of your target customers operate will allow you to create compelling targeted campaigns that are compatible with the needs and culture of that area.
Why do you need to do market research?
- To find out if your business idea or new product/service is applicable? Is there an existing market for it and what sort of perspective do the customers carry of it?
- To check if your advertising efforts are working.
- To explore if your customers are satisfied with the solution you offer, and if not, why not?
- To discover who your competitor(s) is/are.
- To investigate if your business model will work in a different market.
Now you probably have a clearer idea of why market research should never be underestimated. Having a greater understanding of your marketplace from the beginning will enable you to create an effective business strategy. For instance, there are many successful new businesses that enjoy longevity. The primary reason for that is because they often conduct regular market research to understand their target market. Further, also invest to identify consumer problems and pinpoint realistic competitors, etc. Even more, the most powerful B2B SaaS companies are aware that this is the simplest way for entrepreneurs to keep up with market trends and guide their service according to that.
Right now, you may be asking yourself “How in the god’s sake do I find all this information for my company?” First, trying to do online research as it can be helpful. Second, try reading industry articles and blogs that offer quality insights into your niche. Even keeping up with the SaaS market blogs and spending time in industry forums can have some benefits. But your company needs more in-depth research.
Further, here is one thing you need to stick around. In all, market research doesn’t have to be an expensive or complicated process at all. Thus, you can use various market research agencies to help you identify and approach your target market and Ideal Client Profile (ICP).
With the knowledge this segment provides, you will be able to understand the SaaS marketplace where your company should compete. Moreover, you will get to know the trends and industry occurrences that impact you and your customers.
Last, but not least, you will receive a map of all potential clients. This information can help you identify which industries will benefit the most from your SaaS, where your potential clients come from and an estimation of how big is your potential market.
To summarize everything, market research is the key to making better business decisions. The hardest part of it is defining your target market. Once you know who you are targeting, it is much easier to figure out which channels and tactics you can use to reach them and what marketing messages will resonate with them.
No matter whether you do it by yourself or you hire a marketing research agency, whichever method you use, the objective of market research is to be better informed about your customers, competitors, and market trends. The rule remains — the better the information you have, the better business decisions you can make. You must start investing early, as it reaps results in an orderly manner.