Successful marketing strategies immensely vary across industries and different product types.
In today’s world, some of the most used marketing strategies SaaS companies have implemented are listed below.
Top Marketing Strategies for SaaS Companies
Content marketing can be a good investment when done right as it can increase in value over time. Today, companies across the world use content marketing to effectively grow their brand image and online presence. It enables companies to track their visitors and generate leads from their website and other online platforms.
Unlike other forms of marketing such as Pay Per Click (PPC) where the leads will only be generated when a visitor clicks on the ad, content marketing takes a different approach that focuses on creating and distributing relevant content to engage and interact with its target audience.
This marketing strategy has proven to be effective time and time again. Product trials are when potential customers get together and examine, demo and test the product up close and in person. If your product is targeting a tech-savvy audience, they would rather experience the product first hand than speak to a sales representative. However, trials tend to work differently when a service is offered instead of a product.
Psychologically, customers are conditioned to expect discounts and offers on products (clothes, accessories, electronic gadgets, etc.) rather than on services. The interest shown at a product trial can give a strong indication of potential buyer intent and generate future leads.
Referral marketing is a promotional initiative for existing customers to refer new customers usually through an incentive. Most companies who have implemented this type of SaaS marketing strategy have their own referral programs in place. The key to having a good referral program is to explain the incentivized process in detail and the additional benefits the customer will get for their referrals.
Search Engine Optimization
Using Search Engine Optimization (SEO) goes well with content marketing as it can optimize your content in a way that makes it discoverable on search engines such as Google, Yandex, and Bing which can increase your web traffic. SEOs are categorized into 2 types as listed below.
- On-Page SEO
On-page SEO is when a company creates the content for customers by using keyword strategies, titles and descriptions, internal linking, faster loading pages, etc. to redirect them to their company’s website.
- Off-Page SEO
Off-Page SEO is the activities a company performs outside the website. Social media marketing, brand mentions, link building, etc. which all leads to greater exposure on social media and other online platforms.
What is R&D Tax Credit?
The Research and Development (R&D) Tax Credit is a tax incentive sponsored by the government to reward companies that conduct research and development in the United States.
The R&D Tax Credit is not limited to large scale business or major corporations. If your business conducts activities relating to applied sciences, cutting edge technological innovations and other experimental projects, you can apply for the R&D Tax Credit.
How to Qualify for the R&D Tax Credit?
The main objective of the R&D Tax Credit is to incentivize research activities. To qualify for this, there is a 4 part eligibility test established by the Internal Revenue Service (IRS).
- Elimination of Uncertainty
The first part of the eligibility test is where you demonstrate how you have attempted to eliminate uncertainty about the development of a product.
- Process of Experimentation
The second part is where a complete demonstration is carried out through methods such as simulation, modeling, systematic trial and error, etc. This will show that you have evaluated other alternatives before achieving the results shown.
- Technological in Nature
The third part is concerned with the process of experimentation through hard sciences such as computer science, engineering, biology, physics or chemistry.
- Qualified Purpose
The fourth part is also referred to as the Business Component Test. Here, the purpose of research should be declared and what problem it aims to resolve when it comes to creating and improving on a new process or product. The results achieved should also be stated such as an increase in performance, reliability and function, etc.
What are the Benefits of Claiming the R&D Tax Credit?
There are many benefits of claiming the R&D Tax Credit, the 2 main ones are listed below.
- Social Security
When you avail the R&D Tax Credit, this will cancel out the social security tax so that small to medium scale businesses can derive a benefit from their research and development activities.
- Alternative Minimum Tax
The Alternative Minimum Tax (AMT) was implemented to ensure that taxpayers pay at least the minimum tax amount. AMT recalculates the income tax and adds particular tax preference items into the adjusted gross income. With the R&D Tax Credit, you can get a tax cut on AMT if you meet the eligibility requirements.
How to Claim the R&D Tax Credit?
When claiming the R&D Tax Credit, the taxpayer should document all research activities in order to show the amount of research expenses paid for each research activity. When it comes to this, some research expenses will be estimated which is allowed as long as there is a factual basis for these assumptions.
The following documents will be required to claim the R&D Tax Credit.
- General ledger expense details.
- Project research and development notes.
- Project research and development lists.
- Payroll records.
These documents will be combined with credible employee testimonies. This way your claim is substantiated much faster and will ensure that you receive the full entitlement of the R&D Tax Credit under the IRS and Treasury regulations.