So far, in the three years of building The Clueless Company, I have met diverse types of entrepreneurs. Some would have an in-house marketing team, some would prefer outsourcing SaaS marketing to an agency, and some would go for a hybrid approach.
But one most common thing for those who outsourced was that they had no idea what their agency was doing. And in the end, they had to believe the numbers the agency showed and go ahead on their merry way.
However, that’s not how it should work, should it?
Outsourcing your SaaS marketing can be a game-changer for your business, offering access to expert strategies, cost savings, and scalability.
However, rushing into outsourcing without proper planning can lead to mismatched expectations and wasted resources.
In this guide, we’ll explore key factors to consider before outsourcing your SaaS marketing, helping you make informed decisions that align with your business goals.
Why Outsource Your SaaS Marketing?
Outsourcing marketing has become increasingly popular among SaaS companies, with many seeing it as a strategic move to enhance their growth.
Here are some compelling reasons to consider outsourcing:
- Access to Expertise: Outsourcing provides access to seasoned professionals who specialize in SaaS marketing.
According to a study by HubSpot, 63% of companies find it challenging to generate traffic and leads, a gap that expert agencies can help fill with specialized knowledge and tactics.
- Cost Efficiency: Hiring an in-house marketing team can be expensive, with costs including salaries, benefits, and training. Outsourcing can be more cost-effective, especially for startups.
LinkedIn reports that 62% of companies outsource their content marketing to reduce costs and access skills not available in-house. - Scalability: Outsourcing allows you to scale your marketing efforts up or down based on your business needs. Whether you’re launching a new product or entering a new market, agencies can quickly adjust their strategies to align with your goals.
- Focus on Core Business: By outsourcing marketing, you and your internal team can focus on core business functions such as product development and customer support. This can improve overall efficiency and help accelerate your company’s growth.
- Access to Advanced Tools: Marketing agencies often have access to the latest tools and technologies that can enhance your campaigns.
For example, agencies commonly use advanced analytics platforms, which might be cost-prohibitive for individual companies to purchase on their own.
Difference Between Outsourcing vs. In-House Marketing in SaaS
Deciding between outsourcing SaaS marketing and in-house marketing depends on your company’s specific needs and resources.
Here’s a breakdown of the key differences:
- Cost Comparison: In-house teams require significant investment, including salaries, benefits, and ongoing training. For example, the average salary for a digital marketing manager in the U.S. is around $77,000 per year, not including benefits. Outsourcing SaaS marketing, on the other hand, can often be done for a fraction of the cost, with flexible pricing models that suit your budget.
- Flexibility and Speed: Agencies can typically implement strategies faster, leveraging their experience and established processes. In contrast, in-house teams may face longer ramp-up times, especially if they lack experience in specific areas of SaaS marketing.
- Control and Communication: In-house teams provide more direct control over marketing activities and instant communication. However, outsourcing SaaS marketing can offer dedicated account managers to ensure consistent communication and alignment with your goals.
- Skill Set and Specialization: Outsourced teams often bring a broader range of skills and stay up-to-date with industry trends, while in-house teams might have limitations based on the expertise of individual members.
What to Consider Before Outsourcing SaaS Marketing?
Here’s what you need to consider, a checklist before outsourcing SaaS marketing.
1. Understand Your Goals and Needs
Before you start searching for a marketing partner, it’s essential to define your marketing goals clearly.
Are you looking to increase brand awareness, generate more leads, or improve customer retention? Knowing your objectives will help you find a partner whose expertise aligns with your needs.
- Identify Key Metrics: Focus on the marketing KPIs that are most critical to your SaaS business, such as Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), or Customer Lifetime Value (CLV).
- Scope of Work: Determine which aspects of marketing you want to outsource, whether it’s SEO, content marketing, PPC, social media, email campaigns, or a full-suite service.
2. Evaluate Potential Partners Carefully
Not all marketing agencies or freelancers are created equal. It’s important to vet potential partners thoroughly to ensure they have the right experience, skills, and cultural fit for your business.
- Check Experience in SaaS: SaaS marketing has unique challenges, such as subscription models, long sales cycles, and the need for continuous customer engagement. Look for agencies with a proven track record in SaaS.
- Review Case Studies and Testimonials: Ask for case studies or client testimonials that demonstrate their success in driving results for companies similar to yours.
A survey by Demand Gen Report found that 97% of B2B buyers feel that user-generated content (UGC) like case studies is more credible than other types of content. - Assess Their Expertise in Your Niche: If your SaaS product serves a specific industry or niche, ensure the marketing partner understands that space well.
3. Consider the Cost vs. Value
While outsourcing SaaS marketing can save money, it’s crucial to focus on the value rather than just the cost. Cheap services might save you money upfront but can result in poor performance and wasted resources.
- Budget Planning: Set a realistic marketing budget that aligns with your expected return on investment (ROI).
According to Gartner, companies are spending an average of 9.5% of their revenue on marketing, so your budget should be competitive within your industry standards. - Transparent Pricing: Be wary of hidden fees. A reputable agency will provide a clear breakdown of costs and services included.
- Value for Money: Evaluate what’s included in their services. Are they providing a full strategy, execution, analytics, and optimization? Make sure you’re getting comprehensive support for your investment.
4. Communication and Collaboration
Effective communication is key to a successful outsourcing relationship. Evaluate how the agency manages communication, reporting, and collaboration.
- Communication Style: Choose a partner whose communication style matches yours. Regular updates, easy access to your account manager, and responsiveness are crucial for a smooth working relationship.
- Project Management Tools: Check if they use project management tools like Trello, Asana, or Slack for transparent tracking of progress and tasks.
- Reporting Frequency: Understand how and when you’ll receive performance reports and updates on campaign progress. Regular reporting helps ensure that strategies are on track and aligned with your goals.
5. Alignment with Your Brand Vision
Your marketing partner should not only understand your product but also resonate with your brand’s vision and values.
- Brand Consistency: Ensure the agency can maintain your brand voice and messaging consistently across all channels.
A business with consistent branding tends to experience up to 20% greater overall growth and 33% higher revenue compared to one that struggles with off-brand content, according to Marq. - Customization: Avoid cookie-cutter approaches. Your marketing strategy should be tailored to your brand’s unique selling propositions (USPs) and audience needs.
6. Evaluate Their Adaptability and Scalability
The digital marketing landscape is ever-evolving, and your marketing partner needs to stay ahead of the curve. Also, as your SaaS company grows, your marketing needs will scale.
- Up-to-date with Trends: Ensure the agency stays current with the latest marketing trends and technologies. A partner that’s constantly learning and adapting can provide a competitive edge.
- Scalability: Confirm the partner can scale their efforts as your business grows, adding new strategies or expanding services without a hitch.
7. Contract Terms and Exit Strategy
Finally, review the contract terms carefully. Understand the commitment period, exit options, and how to handle situations where the partnership might not work out as planned.
- Flexible Contracts: Look for agencies that offer flexible terms rather than locking you into long-term contracts without clear performance guarantees.
- Exit Strategy: Know how easy it is to end the partnership if things don’t work out. A good agency will have a smooth offboarding process that minimizes disruptions to your marketing efforts.
Conclusion
Outsourcing SaaS marketing can be a strategic move that drives growth and efficiency, but it requires careful consideration and due diligence.
If you are clueless about your agency or marketing team’s performance, consider getting a detailed audit done through The Agency Auditor.
By evaluating your goals, vetting potential partners, and ensuring alignment with your brand vision, you can find a marketing partner that helps your SaaS business thrive.
Take your time to weigh the pros and cons, and make sure any partnership aligns with your long-term business goals.