A New Paradigm for Selecting SaaS Marketing Strategies

Abstract

Software as a Service (SaaS) is a key development in the software industry. Within a decade products matured from rigid functional software to dynamic customizable software to meet customer needs. Within this process, the perception of software shifted from a product perspective to a service perspective. The successful business model in the industry was transformed from transaction-based to relationship-based. By 2014, SaaS is a global multi-billion dollar industry. There are three types of SaaS: low-touch, moderate-touch, and high-touch. So far, literature does not provide a comprehensive model for marketing strategy definition in the SaaS industry. Based on strategic marketing theory, this paper introduces a comprehensive model for SaaS marketing strategy decision-making. The framework is based on Lauterborn’s four C’s as well as Tyrväinen and Selin’s SaaS marketing and selling dimensions model. Furthermore, the paper provides a set of metrics to measure the rate of success of a SaaS marketing strategy. An application based on data collected by the Pacific Crest survey analyzing SaaS companies is provided.