Discovering Product-Market Fit in Consumer vs SaaS. Most of the time, audience size is a moving target. The characteristics that define the SaaS industry, in fact, lend themselves to its success; Shorter Sales Cycles: Since a SaaS is ever-evolving with constant updates and changes, the sales cycle is remarkably […] Spending a few hundred bucks in advance will save you thousands later on, and you will come out of it with the condensed findings of subject matter experts in addition to the numbers you seek. Often, government institutions will keep some statistical data and make it available either in their publications or upon request. The more time you spend looking into many different places, the more precise your outcome will be. Usually, there are not enough larger companies in those fields to make a living on selling $500+ reports every year, so the industry reports that were available for B2B markets are likely very scarce. Focus on Inbound Marketing – For many SaaS B2B Companies, inbound marketing acts as the cornerstone of all their marketing activities. This article is part of The Preparation Stage section of Zero to Sold: How to Start, Run, and Sell a Bootstrapped Business. The Growing Trend of Vertical SaaS . Reach out to people who have some standing in the respective markets and communities. Totango. Defining your b2b marketing strategy depends on a range of variables from your product positioning to business model. Mailchimp’s use case is an example of a product-based B2B go-to-market strategy for SaaS startups. Canva's B2C SaaS Marketing Case Study in Personalization. November 14, 2019 February 25, 2020 ~ Arvid Kahl. SaaS market size and segmentation in China. But how do you figure out if the audience is big enough to support your business today and five years from now? Talk to people in the industry first. If there is any number at all, treat it like a ballpark figure. Positioning. Of course, many of them also apply to other categories of software products and services. B2B market sizing involves stimulating the potential dollar value of a market or a potential market opportunity. The market size is a measure of the potential available to a company and it is the starting point for developing a marketing strategy. Positioning is your place in the market and how your customers think about your product. The Enterprise/Mid-Market SaaS businesses have more employees (median team size: 44, average: 96.8) than those targeting SMBs (median team size: 24, … Mike Ciulla-January 27, 2020 0. In B2BC markets, where your customers are freelancers or small businesses, you will have less access to industry reports. The modern B2B SaaS market is reaching full maturity. "You’re doing great work with SaaS Marketer. This paper discusses how market size can be assessed. SaaS B2B software trends are related to that particular company-to-company sphere. Our initial estimate of $5.7B MarTech TAM, based on a dataset representing 20% of the MarTech companies identified by Chiefmartec, is in line with the IDC estimate above (20% of $32 billion is $6.4B). When they do, they give up quite quickly. It’s worth looking into the companies of a market to understand the size of it. You won’t do this work in a day. That is because they often conduct regular market research to understand their target market, identify consumer problems and pinpoint realistic competitors. SaaS Market Size Statistics. In summary, finding the size of your potential audience will require you to gather a lot of information from a lot of sources. Salesforce is still the largest SaaS company in the U.S., with a market capitalization of $161.4 billion. Learn how your comment data is processed. I’ve heard some refer to customer activation as the moment when your customer gets value from your product, but I look at... Read more. Last updated 01 October, 2020. In this past decade, the market size for vertical SaaS companies has tripled. A good example for this is HolonIQ in the EdTech space. The world is shifting to SaaS no matter how we look at it. For this reason, most B2B SaaS vendors have been honing in on the small to medium-sized business (SMB) market and small, independent functional groups within larger companies. When we work with B2B SaaS companies, one of the first questions you need to answer is “What market am I in? That will actively inform not just your approach to determining the size of the audience, but also if it is an audience worth selling to. Ask them about what you are looking for and how you can find it, and they will give you pointers or even numbers they have access to. Those reports are well worth it, for two reasons. Narrowing the search to Advertising resulted in $1.0B TAM; B2B Marketing, which ecompasses business intelligence, lead generation, and SEO companies, revealed $2.1B TAM; Digital Marketing companies represent $487M TAM; Email Marketing represents $611M TAM; Marketing Automation resulted in $876M TAM; and Predictive Analytics represents $495M TAM. Our 9th annual survey, completed in February, saw over 1,400 SaaS companies respond. There are likewise SaaS tools for small businesses that can help them compete with larger companies. Remember that many founders give up at some point during this process. It will also allow you to find smaller companies that are in the same field but who you may not have heard of yet. The tricky thing about marketing a B2B SaaS product is the balance that needs... Read more. Finding B2B Market Sizes. You can do that through sales calls or by reaching out to them directly with your questions. Industries contract and expand, sometimes extremely fast, and any number is outdated within weeks. But it’s not just anything about these businesses that matters, it’s the size. However, you need to have the right strategies in place to seize these opportunities. Thanks to the benefits it brings to the table, Software-as-a-Service has shown a positive trend in the market with more and more companies opting out to try it. Some won’t be. The Infrastructure-as-a-Service (IaaS) sector is to achieve the highest rate of growth out of all of the cloud services sectors, up 36.6% in 2017 to reach $34.7 billion. Total Addressable Market. With this in mind, we must do everything in our power to keep B2B customers. Standard B2B usually means longer marketing and sales cycles (up to 12 months) but if you are dealing with a B2B SaaS business, then the sales cycle is very short (from a few minutes to a few days) and ideally involves a totally frictionless signup and onboarding process for the customer. Your SaaS marketing team is one of the most important resources that can help you to gain quick growth in your market. Industry magazines, both old-school print versions and online editions, are a densely packed source of information. Lead Generation. It places software features at the center of a client acquisition strategy. 5. If you have an enterprise-focused business, it is more likely that you will find public information you can trust. This suggests that our categorization definition for IaaS companies is broader than that used by Gartner. By far the largest section of this was IaaS, which took up $84 billion.Sales was second largest at $34 billion. Instead, SaaS companies have to look at the option of b2c SaaS marketing, in order to bring in lower value customers in big volumes. They will know exactly what is going on, how big their audience is, and what the market is doing. Infrastructure-as-a-Service is the largest sector at $84 billion and contains the large cloud computing companies — Amazon and Salesforce. We began by aggregating revenue estimates from B2B companies across SaaS, PaaS, and IaaS sectors and then sub-categorized them across a few broad sectors: The chart above shows the estimated total addressable market size for each sector and represents a combined market value of $134 billion. There will always be skeptics, and some markets are full of them. Enterprise companies often are required to publish their financial records and reports, which include market sizes directly or at least allow you to infer them in combination with market share ratios. But if you’re determined to find out if a market is a good fit and the right size for your business, you will get there eventually. DECEMBER 10, 2019 ... SaaS marketing is strategic promotion for software-as-a-service (SaaS) companies. B2B Marketing Leadership with Eric Keating. When targeting medium-sized businesses (50-249 employees), that number rises to 35,000. This data will reveal the key players, you will learn about the tectonic forces of the industry that you may not be aware of, and you will absorb how change is accepted, welcome, and often resisted. For our analysis, we selected B2B SaaS companies as our target market, which included companies across the SaaS, PaaS, and IaaS sectors; and then performed a deeper dive into multiple subsegments. When you’re starting a bootstrapped SaaS business, you have to find a painful problem to solve. ... A week into Q3 earnings, other than Fastly, cloud and SaaS seems to be on a roll. Many start-ups (and even growth firms) lack this discipline and they therefore serve customers of all sizes. Since I first compiled this list in February, 2019, Salesforce has added $36.0 billion dollars to its market cap. And, as you’ve probably figured out by now, we really know our stuff when it comes to B2B SaaS marketing. This question is answered by selecting a target market and performing a deeper segmentation analysis to narrow down to the market segments that are most important. Software as a Service (SaaS) Market Worth USD 60.36 Billion, at 9% CAGR During 2019-2023 | Technavio Business Wire LONDON -- June 26, 2019 According to … This site uses Akismet to reduce spam. Even for enterprise markets, the numbers out there are likely to be skewed or inflated. We were interested in exploring growth opportunities within the B2B Marketing SaaS space, so we narrowed the search parameters to focus on Marketing Automation and next generation Marketing Technologies (MarTech) companies: At the broadest level, the MarTech SaaS companies in our dataset uncovered 1,362 companies with a TAM of approximately $5.7B. People often are willing to help people make progress in their field, as long as you’re not direct competition. Sales is the second largest sector at $34 billion and includes companies such as Pipedrive, InsideSales, and Xactly. How many people are employed by that company? The rapid growth of content marketing is undeniable. You can find detailed step-by-step guides below, based on my own experience in startups working in all three fields. B2B Inbound Marketing. As with any modeling, B2B market sizing is a science. In B2BC markets where there are many factors that Go into which company size is a measure the. 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