Why B2B SaaS Companies Should Stop Ignoring Lead Magnets
Lead generation is crucial for SaaS companies, especially in this very competitive business landscape. For SaaS companies with monthly payments, lead generation is not an option but a necessity, unlike other traditional businesses.
With a well-crafted strategy, these leads then turn into long-term customers, which yields higher profits. However, the process of lead generation is not that easy. Study shows that 30% of the B2B marketers consider generating high-quality leads as their biggest challenge.
Lead generation for SaaS companies is not what it used to be. In the past, it was very easy to convert visitors into customers, but it is a completely different story today. In today's digital world, lead generation takes time; that is where lead magnets come in.
Lead magnets are an essential part of a SaaS company's marketing strategy that shouldn't be ignored. Most SaaS companies fail to generate leads because they either don't have any lead magnets or are not effective for their target audience.
Without lead magnets, you have no way to communicate with people and knowing who visited your site. Therefore, in this article, we are going to discuss common mistakes made by SaaS marketers when it comes to lead magnets.
We will also discuss some of the best lead magnets you can use to not only generate leads but also convert them into loyal customers.
4 Common SaaS Lead Generation Mistakes to Avoid
There are dozens of lead magnets out there that SaaS companies can choose from, including infographics, PDFs, ebooks, tutorials, cheat sheets, etc. Most SaaS companies don't have any lead magnets to offer, or if they do, they are wrong.
Here are the top 4 common lead generation mistakes that SaaS companies should avoid:
Having A Wrong Lead Magnet
Most SaaS companies offer the wrong type of lead magnets that their target audience is not even interested in. These lead magnets are not useful; thus, they don't get consumed at all.
For example, newsletters, white papers, and seminar recordings are the most common lead magnets used by B2B SaaS companies. However, these are uninteresting, which results in low conversion rates.
If people are not willing to consume your content, then it means it is ineffective, and you should reconsider.
Most SaaS companies focus on the number of lead magnets in their sales funnel instead of the quality of content. Higher lead magnets of poor quality could be a waste. Poor quality leads don't only waste time but also resources, and they don't help with lead generation.
Instead, poor quality leads have the risk of higher churn rates for the SaaS companies. You might be driving away potential customers with your bad leads. For generating a quality lead, you need to understand your buyer's wants and needs; only then can you offer a solution or something valuable.
Another most common mistake by SaaS businesses when working on lead generation and management is ignoring SEO. After you have created quality lead magnets, SEO will help bring traffic to your website and convert those leads into customers.
However, to achieve that, your website needs all the elements to help with conversion. For example, your SEO strategy should include keywords regarding user intent, link building, content, authenticity, web design, and more.
Your SEO strategy should align with your marketing strategy so it can help you maximize your lead generation efforts. It might be a bit technical for some people, but with the help of a software development company, SaaS businesses can ensure a good SEO strategy to boost online traffic and ROI.
Not Promoting Your Lead Magnets
Last but not least, another most common lead magnet mistake is that most SaaS companies don't actively promote their lead magnets. Most often, lead magnets are placed somewhere on the site, and brands think that users will naturally find these magnets and opt for a newsletter, download, etc.
This is a missed opportunity on the part of the companies. Good lead magnets drive traffic; that is why they need to be advertised. You can also opt for a well-designed landing page with compelling lead magnets placed strategically on the site where users can interact with it.
Best B2B Lead Magnets for SaaS Companies
Here are some of the best lead magnet ideas that B2B SaaS companies must leverage in 2021 to enjoy higher conversions and profits.
Offer Discounts and Free Trials
Never underestimate the power of discounts and free trials when it comes to lead generation. You can offer discounts as pop-ups when a user visits your site for the first time.
For example, MeUndies offers 15% off by simply entering your email address. That's it! It doesn't take too much of the user's time, which actually increases conversion.
Similarly, you can also offer free trials so users can try your products and services before buying them. This lead magnet is excellent for conversion. All you have to do is hook users to your products so they will want to subscribe for more.
Most SaaS businesses like Netflix, Amazon Prime Video use this strategy by offering a 30-day free trial to their users.
Use Interactive Quizzes
Quizzes are a great lead magnet as they generate a lot of social engagement and are also excellent if you want people to subscribe. That is why popular sites like Buzzfeed feature a lot of interactive quizzes.
Once the user takes a quiz like a personality test, they will be willing to give their email address to see the results.
Similarly, like Buzzfeed, you can also ask users to sign-up to get the latest quizzes. But, you need to ensure that the quizzes you create align with your services and product and create engaging questions. Last but not least, consider promoting your quizzes on social media as well for higher engagement.
When you are creating CTAs, ask yourself if your message has compelling content or just stories that keep viewers entertained for a while? Call to Action is a great lead magnet that most SaaS companies are missing on their websites.
CTAs are an excellent and easy way to communicate with your clients and make them act in a specific manner, which ultimately leads to higher conversion and profits.
The first step to designing a personalized CTA is to outline your goals and then craft your message according to the action that you are trying to stimulate. Study shows that B2B websites reported 38.26% higher conversions after just replacing an action verb in the CTA.
Therefore, make sure to use a short string of action-oriented words in your CTA. Instead of writing "Buy Now," you can write "Add to Cart-Save 70% today."
Giveaway coupons and free shipping
According to FedEx,
"Many sellers offer free shipping because customers say they want it. In fact, 73% of online shoppers say that free shipping is what they want to see at checkout."
Discount coupons and free shipping are amazing lead magnets. Most SaaS websites offer free shipping and coupons for capturing visitor's email addresses. It helps you build a mailing list of your potential customers for follow-up.
Free shipping is a very compelling lead magnet as a report by Marketing Land shows that 9 out of 10 customers are motivated o shop online when the website offers free shipping. You can see how it can fuel for sales and conversions of B2B SaaS businesses.
Offer Ebooks and Checklists
Ebooks and Checklists are an excellent way to capture leads and email addresses for maximum optimization. According to Hubspot, ebooks are excellent lead magnets and are used by 27.7% of SaaS marketers today.
However, make sure that your ebooks are not excessively lengthy, as the average length of ebooks should be around 5k-10k words. One great example is of OptionMonster, as it displays an ebook in the form of a pop-up when visitors are navigating through their homepage.
It is a simple lead magnet, as the users only have to give their email addresses to get a free ebook. Similarly, checklists are quite popular too as it offers step-by-step solutions to users. Offering ebooks and checklists add an incentive for site visitors to easily give their contact information to get something free.
Capturing emails and contact information is essential for B2B SaaS marketers for higher lead generation and profits. Lead magnets and tools change over time, but they are very important for SaaS companies and shouldn't be ignored.
When it comes to lead generation, don't go with your gut feeling alone. Run A/B tests, use analytics and experiment around with different techniques to see which one yields the maximum results.
In this article, we have discussed some of the most common lead magnet mistakes and opportunities for B2B companies. You can use these ideas to optimize your marketing strategy and enjoy higher ROI.
No matter what approach you take, the key is to provide something of value to your customer, encouraging them to take the next step and buy your product.