This B2B SaaS Demand Generation Framework Has Driven $100 Million+ In Pipeline Opportunity & Revenue | StartUP MQL
The growth engine of every startup is the foundation. But many founders struggle to build an efficient and scalable model that drives predictable, sustainable results over time.
For almost two decades, I’ve strategized, implemented and managed the SaaS Demand Generation engine for multiple SaaS startups, which has generated millions of dollars per year in closed won revenue and pipeline opportunities. This article is a blueprint which you can apply to your own SaaS demand generation program.
Demand generation is a proven strategy and this framework will work for most SaaS companies, no matter what differentiates your business. Depending on the audience you’re selling your SaaS products to will determine if inbound or outbound is the right demand generation framework for your business. This particular framework is developed around a transactional sales model (demo request), not a product-led growth in which user acquisition, expansion, and then conversion is the primary strategy.
While this demand generation framework will work for most companies, it’s important to note that multiple inbound and outbound channels is the most effective way to grow a SaaS company.
Let’s review the rest of the article in two parts. The first half reviews the demand generation framework as a whole, the second half touches on everything happening in each part of the diagram.
B2B SaaS Demand Generation Framework
This 40,000 cliff view of a B2B marketing and sales funnel is a simplified visualization of the demand generation process.
As the Head of Demand Generation for two SaaS startups selling API solutions to enterprises, I found the following demand generation framework to be very effective. (both SaaS startups were acquired by Microsoft and Sauce Labs)
SaaS Demand Generation Framework Explained
Your demand generation framework might look like this, it might not, but let me explain my thought process on each section in the framework.
Demo Equals Top of Funnel Goal
The top of the funnel is where demos get introduced into the sales process with Marketing Qualified Leads. (MQLs)
CRM
The CRM (HubSpot / Salesforce) is the foundation in which you build your demand generation framework. Your customer and prospect data are stored in the CRM, a single source of information on all customer and prospect activity.
Emails store a significant amount of rich data and every email sent or received should be captured in the CRM.
Pro tip, never deploy marketing emails from your sales or marketing CRM, always use a 3rd party email provider to deploy marketing emails.
Identify cold and warm leads in the CRM.
A great CRM will have open APIs and/or native integrations that allow you to pipe into tools you use to grow your sales pipeline.
CRM Powers Account-Based Marketing
The CRM is at the core of every demand generation strategy, like outbound and inbound marketing, email, digital marketing, and even direct mail.
Emails in your CRM will allow you to publish email marketing messages, transactional messages and drive both cold and warm prospects into demos.
Physical addresses in your CRM will enable you for direct mail campaigns.
Digital marketing platforms like Linkedin and Facebook will allow you to create a look-a-like audience based on contacts in your CRM.
Outbound marketing will only be successful if you maintain a healthy CRM with verified emails and phone numbers.
Each one of these account-based marketing channels, if executed correctly, will drive demos into the top of the sales funnel.
Inbound Marketing Fuels Lead Generation and Web Traffic
The graphic above identifies inbound channels that can drive quality traffic back to your site for converting users into demos.
SEM/SEO (search engine) can drive both paid or organic traffic to your website. Pro Tip: your outbound demand generation engine should be a well oiled machine, delivering a consistent flow of leads before you start a paid search campaign.
SEO should be strategized and implemented early in the demand generation process. SEO will yield targeted traffic back to your site, convert unknown users into quality B2B leads, and it’s inexpensive, however, it takes a long and undisclosed amount of time to see results.
Paid search will ignite your sales funnel with leads and trial signups from users with buying intent. Your paid ads will be at the top of Google, reassuring your target audience you're a leader in the space and that they should click on your ad.
Review and testimonial sites like Capterra are a great way to optimize on organic traffic searching for SaaS products and services like yours.
PR agencies are still one of the most effective ways to drive highly targeted traffic back to your site. A great PR firm will get your SaaS company into publications like Forbes, Inc, Wired, etc… In my experience it is worth investing into PR agencies.
Partner traffic and referrals typically yield highly targeted traffic back to the site, especially if your SaaS solution adds a complimentary layer to your partner's tech.
Social media marketing can drive an avalanche of traffic back to your site and boost your lead generation efforts. Social media is not just about flashy ads and content, it’s about sharing your value proposition to a very targeted audience (look-a-like audience) that will likely find your SaaS product worthy of their time.
By executing a strategic inbound marketing program your SaaS company will generate brand awareness and highly targeted web traffic.
Turn Customers into B2B Lead Generation Partners
Word of mouth is a great way to fill your sales funnel with leads and has been a proven demand generation tactic.
Existing customers vouching for your SaaS product or service through word of mouth marketing normally produce higher quality and more engaging leads.
Design an incentivized referral program that offers existing customers and new customers a reward if they refer customers to you.
Lead Generation Website
If you’re selling a SaaS product or service on your website, then your site not only needs to be informative, but designed in a way to capture as many users as possible. Most top of the funnel marketing involves driving traffic back to your website, and if the website is designed correctly it will convert traffic into demos or trial signups.
When a user lands on your website they are showing both intent and interest, however, they may not be ready to convert into a paid customer or demo. This is why it is important to offer support content like newsletters, whitepapers, and case studies, as it will allow you to engage with users and nurture them until they convert into a marketing qualified lead.
Retargeting ads (AdRoll) are a great way to get in front of users that landed on your website, but did not sign up or request a demo. Since you're already putting a lot of effort into driving traffic to your site, then standing up a retargeting campaign to consistently place your message to your target audience in their preferred channel will help monetize your original marketing efforts.
Implement a lead scoring system so you can measure the level of engagement and quality before passing to sales. The sales team will appreciate being passed quality leads they can back into a lead score.
Post Demo, Now What
A user has requested a demo of your SaaS product, now is the time to convert an engaged user to a booked meeting on the calendar. Pro Tip: Engaged users are the lowest hanging fruit, even if a user’s first response is negative. The person managing these engagements should be a master of persuasion and should be able to take a negative response and turn it into a positive booked demo.
Calendar links like Calendly and HubSpot are a great way to reduce back and forth emails and to quickly convert an engaged user to a scheduled demo. By providing tools that create less friction, you’ll be able to increase your lead acquisition rate significantly.
SDRs (sales development representative) are a great resource to follow up with engaged users that have not fully committed to a scheduled demo. SDRs can send personalized emails, phone calls, and even video messages to entice a user to schedule a call. I personally like to train my SDRs to provide short and quick responses followed by a clear CTA (call to action) in order to increase demo conversions.
Automated emails and workflows are the easiest way to enter a user into a customer journey, while informing the sales teams of tasks, follow ups, meetings, and exactly where the user is in the customer journey. Automated workflows will decrease the time spent on necessary tasks that can be automated, while increasing performance and deliverability.
Sales Cycle
A marketing qualified lead (MQL) has been converted into a booked demo, now is the time to pass the SaaS qualified lead (SQL) to the sales team and the sales cycle starts.
The sales team will now own the relationship and is responsible for demos, walking the user through the customer journey, addressing questions and ultimately closing the sale.
You can enrich the customer journey by providing users with marketing assets like video, personalized pitch decks, white papers and even competitive intelligence.
At the end of the sales cycle the user either converted into a paid SaaS customer or became a lost opportunity. Users not converted into paying customers will flow back into the demand generation and marketing team. The demand generation team will place the lost opportunity into nurturing campaigns and the cycle repeats.
Customer and User Experience
Yay!! The user was converted into a customer, now the customer phase begins. The customer phase is typically not led by the sales team, but by Customer Success, Product and Marketing.
The Customer Success team ensures that customers have no roadblocks and are able to functionally use your SaaS product.
The Product team will support both Customer Success and Marketing to ensure proper utilization of SaaS products and to provide product updates.
The Marketing team will provide timely marketing assets to customers for when new products are launched and will share the customer success story in case studies.
