In the competitive world of Software as a Service (SaaS), converting website visitors into trial users is crucial for growth. However, with average conversion rates hovering around 3% for SaaS websites, according to Unbounce, there's a vast opportunity in the 97% who don't convert immediately. This is where retargeting for SaaS comes into play. Retargeting, when done right, can boost trial sign-ups by 25% or more, turning missed opportunities into valuable leads. This comprehensive guide will explore the ins and outs of retargeting for SaaS companies, providing you with strategies, best practices, and real-world examples to supercharge your marketing efforts. Whether you're new to retargeting or looking to optimize your existing campaigns, this guide will equip you with the tools to transform your retargeting strategy and significantly increase your trial sign-ups.
Understanding Retargeting for SaaS
Retargeting, also known as remarketing, is a powerful advertising technique that targets users who have previously interacted with your website or app. For SaaS companies, it's an essential tool for nurturing leads and guiding them through the conversion funnel.
Key concepts in retargeting for SaaS:
a) Pixel-based retargeting:
- Uses a JavaScript code (pixel) to track website visitors
- Allows for immediate retargeting based on specific page visits
b) List-based retargeting:
- Uses customer information you already have (e.g., email lists)
- Useful for targeting existing trial users or newsletter subscribers
c) Platform options for retargeting:
- Google Ads (formerly AdWords)
- Facebook Ads
- LinkedIn Ads
- Twitter Ads
- AdRoll (for cross-platform retargeting)
d) Retargeting funnel stages:
- Awareness: Target all website visitors
- Consideration: Focus on users who viewed specific product pages
- Intent: Target users who started but didn't complete sign-up
- Decision: Retarget trial users to encourage paid conversions
Why retargeting is crucial for SaaS:
- Longer sales cycles: B2B SaaS often involves multiple decision-makers and a lengthy consideration process
- Education-heavy products: SaaS solutions often require explaining complex features and benefits
- Free trial model: Retargeting can encourage trial users to engage more and ultimately convert
By implementing a strategic retargeting campaign, SaaS companies can stay top-of-mind with potential customers, nurture leads more effectively, and significantly increase trial sign-ups and conversions.
Setting Up Your Retargeting for SaaS Campaign
To create an effective retargeting campaign for your SaaS product, follow these steps:
a) Define Your Objectives:
- Determine specific goals (e.g., increase trial sign-ups by 25%)
- Set measurable KPIs (Key Performance Indicators)
b) Segment Your Audience:
- Create distinct audience groups based on behavior:
- All website visitors
- Product page viewers
- Pricing page visitors
- Blog readers
- Abandoned trial sign-ups
c) Choose Your Retargeting Platforms:
- Select platforms based on where your audience spends time online
- Consider using multiple platforms for wider reach
d) Implement Tracking Pixels:
- Install retargeting pixels on your website
- Set up event tracking for specific actions (e.g., button clicks, page views)
e) Create Tailored Ad Content:
- Develop ads specific to each audience segment
- Use dynamic ads to showcase relevant products or features
f) Set Frequency Caps:
- Limit ad exposure to prevent ad fatigue
- Test different caps to find the optimal balance
g) Determine Campaign Duration:
- Set appropriate timeframes for each audience segment
- Consider your sales cycle length when setting durations
h) Establish Budget and Bidding Strategy:
- Allocate budget based on the value of each audience segment
- Use automated bidding strategies to optimize for conversions
i) Implement Burn Pixels:
- Set up pixels to remove converted users from retargeting lists
- Ensure you're not wasting budget on users who have already converted
Real-world example: Dropbox implemented a sophisticated retargeting campaign that segmented users based on their level of product usage. By serving tailored ads to each segment, they increased their conversion rate for paid plans by 17% among trial users.
Actionable tip: Use Google Analytics to identify your highest-value pages (those with the best conversion rates). Create specific retargeting lists for visitors to these pages and prioritize them in your campaigns.
Crafting Compelling Retargeting Ad Creative for SaaS
The success of your retargeting campaign largely depends on your ad creative. Here's how to create ads that resonate with your SaaS audience:
a) Tailor Messaging to Funnel Stage:
- Awareness: Focus on brand and product introduction
- Consideration: Highlight key features and benefits
- Intent: Address common objections and showcase social proof
- Decision: Offer incentives and create urgency
b) Use Strong Visuals:
- Incorporate your product interface in ad imagery
- Use lifestyle images that represent your target audience
- Ensure consistent branding across all ads
c) Craft Compelling Headlines:
- Address specific pain points your SaaS solves
- Use questions to pique curiosity
- Include numbers or statistics for credibility
d) Highlight Unique Selling Propositions (USPs):
- Emphasize what sets your SaaS apart from competitors
- Focus on specific features or benefits unique to your product
e) Incorporate Social Proof:
- Include customer testimonials or case study results
- Display logos of well-known clients or industry awards
f) Create a Sense of Urgency:
- Use limited-time offers or exclusive deals
- Highlight scarcity (e.g., "Only 50 spots left for our free webinar")
g) Use Clear and Compelling CTAs:
- Be specific about the desired action (e.g., "Start Your Free Trial")
- Use action-oriented language
h) Implement Ad Rotation:
- Create multiple ad variations to prevent ad fatigue
- Use A/B testing to identify top-performing ads
i) Leverage Dynamic Ads:
- Use dynamic product ads to showcase specific features users viewed
- Personalize ad copy based on user behavior
Real-world example: Slack created a series of retargeting ads that addressed specific pain points for different team sizes and industries. By tailoring their messaging and showcasing relevant features, they increased their click-through rates by 30% and boosted trial sign-ups by 22%.
Actionable tip: Create a "FOMO" (Fear of Missing Out) ad set that targets users who visited your site during a promotional period but didn't convert. Remind them of the offer they're missing and create urgency to drive conversions.
Optimizing Your Retargeting Funnel for SaaS
To maximize the effectiveness of your retargeting efforts, it's crucial to optimize your entire funnel:
a) Implement Sequential Retargeting:
- Create a series of ads that guide users through the funnel
- Start with brand awareness, then move to feature highlights, and finally to conversion-focused messages
b) Use Micro-Conversions:
- Identify smaller actions that lead to trial sign-ups (e.g., whitepaper downloads, webinar registrations)
- Create retargeting campaigns specific to these micro-conversions
c) Optimize Landing Pages:
- Ensure a consistent message from ad to landing page
- Create dedicated landing pages for each retargeting segment
- A/B test different landing page elements (headlines, CTAs, form length)
d) Leverage Email Retargeting:
- Use tools like Customer Match (Google) or Custom Audiences (Facebook) to retarget email subscribers
- Create campaigns based on email engagement levels
e) Implement Cross-Channel Retargeting:
- Use tools like AdRoll to retarget users across multiple platforms
- Maintain consistent messaging across channels for a cohesive experience
f) Utilize Lookalike Audiences:
- Create lookalike audiences based on your best customers
- Use these for prospecting campaigns to find new high-quality leads
g) Monitor and Adjust Frequency:
- Regularly check frequency metrics to avoid ad fatigue
- Adjust frequency caps based on performance data
h) Implement Audience Exclusions:
- Exclude converted users from your retargeting campaigns
- Create suppression lists for users who have unsubscribed or shown negative engagement
Real-world example: HubSpot implemented a sophisticated retargeting funnel that guided users from awareness (blog content) through consideration (feature-focused ads) to decision (trial sign-up promotions). This approach increased their trial sign-ups by 27% over a 3-month period.
Actionable tip: Create a "second chance" campaign targeting users who started a trial but didn't convert to a paid plan. Offer an extended trial or a discount to encourage them to give your product another try.
Measuring and Analyzing Your SaaS Retargeting Campaigns
To ensure your retargeting efforts are driving results, it's essential to measure and analyze your campaigns regularly:
a) Key Metrics to Track:
- Click-Through Rate (CTR)
- Conversion Rate
- Cost Per Acquisition (CPA)
- Return on Ad Spend (ROAS)
- View-Through Conversions
- Frequency
- Reach
- Time to Conversion
b) Use Attribution Modeling:
- Implement multi-touch attribution to understand the full impact of retargeting
- Consider using tools like Google Analytics' Model Comparison Tool
c) Analyze by Segment:
- Compare performance across different audience segments
- Identify which segments are most valuable and allocate budget accordingly
d) Monitor Brand Lift:
- Use brand surveys to measure the impact of retargeting on brand awareness and perception
- Track direct and organic traffic alongside retargeting campaigns
e) Leverage A/B Testing:
- Continuously test different ad creatives, audiences, and landing pages
- Use statistical significance calculators to ensure valid results
f) Implement Cohort Analysis:
- Analyze how different user cohorts respond to retargeting over time
- Use this data to optimize campaign duration and messaging
g) Use Heat Mapping Tools:
- Implement tools like Hotjar on your landing pages
- Analyze user behavior to identify areas for improvement
h) Regular Reporting and Review:
- Set up automated reports for key metrics
- Conduct regular (e.g., bi-weekly) review sessions to discuss performance and optimizations
Real-world example: Zendesk implemented a comprehensive analytics strategy for their retargeting campaigns, which allowed them to identify that users who engaged with their help center content were 21% more likely to start a trial. They used this insight to create targeted campaigns for this segment, resulting in a 32% increase in trial sign-ups.
Actionable tip: Create a retargeting performance dashboard using Google Data Studio or a similar tool. Include key metrics, segment performance, and trend analysis to easily track and share campaign results with stakeholders.
Conclusion
Retargeting for SaaS is a powerful tool that, when leveraged effectively, can significantly boost your trial sign-ups and overall conversion rates. By understanding the fundamentals, setting up strategic campaigns, crafting compelling ad creative, optimizing your funnel, and consistently measuring and analyzing your efforts, you can create a retargeting strategy that not only brings back lost visitors but turns them into valuable customers.
Remember, the key to success in retargeting is continuous optimization. Start by implementing these strategies, closely monitor your results, and iterate based on the data. With persistence and data-driven decision-making, you can realistically aim for a 25% increase in trial sign-ups, if not more.
Are you ready to transform your SaaS retargeting strategy and dramatically boost your trial sign-ups?
.svg)
