Growing a business today is challenging work – it takes a lot of determination and smart strategies when getting the word out about your brand. But when you're in the Software-as-a-Service (SaaS) space, things can get even more complicated.
There is no shortage of competition when offering SaaS products. Pretty much every industry has an extensive list of cloud-based service companies and third-party providers vying for their share of the market. However, while a lot of attention is placed strictly on traditional B2B customers, there is also a lot of potential when marketing to government agencies.
By applying the right strategies, you can create a go-to-market strategy that increases the likelihood of gaining interest from government procurement teams while helping you to gain more qualified leads and new contract opportunities.
Navigating Government Procurement Processes
Every industry sector presents new hurdles for emerging businesses. If you’re not dealing with fierce competition, you’re constantly needing to iterate your products to meet customer needs. Nevertheless, SaaS businesses need to know how to maneuver through these obstacles without impacting their revenue streams.
In public sectors and when marketing to government clients, SaaS companies have even more challenges to deal with. Government buyers need to adhere to strict protocols when procuring products and services. This translates to longer buyer cycles and more complicated marketing funnels.
Another unique element to government procurement processes has to do with regulatory compliance requirements placed on vendors. Unlike commercial businesses, public sector organizations are bound by certain security frameworks that limit the types of vendors they can work with.
In most cases, no government purchase is made by one single individual. Instead, it is made by a group of people who share the responsibility of managing larger departmental budgets. As a result, extra steps are often required for contract approval.
Still, if you’re able to get through these obstacles, there is a lot of upside to be had. Government contracts typically last for years and can be a great source of recurring revenue.
How to Make your B2G SaaS Marketing Strategy Successful
It's definitely not for certain companies to figure out how to get into a new market. Researching new industry trends and understanding the nuances behind the procurement process takes time and resources. Because of this, some SaaS companies might be tempted to just try and reach as many people as possible instead of focusing on a targeted marketing approach. Unfortunately, this often leads to disappointing results.
While it's a good idea to explore new marketing verticals, just sending out a blast of brand messages to as many people as possible usually doesn't work well with government clients. Instead, here are some effective marketing strategies you can follow:
Keep Your Solution Aligned With Agency Objectives
When government buyers are checking out new companies, they want to be sure they're picking the vendor fit. Often, this is easier said than done. When you're dealing with large government budgets, there's a lot of pressure to spend it wisely.
One way to get a government buyer interested in what your offerings are is to show them how your product can directly help them achieve their objectives. Take some time to research the agency and get to know where their focus is. They might be interested in developing new CAD systems, investing in cloud operations, or improving their digital security initiatives.
Companies that can clearly address and support an agency’s core missions will get much more attention than brands that don't do the same legwork.
Understand The Scope of Your Potential Client’s Technology Stack
Government agencies want to make sure the solutions they invest in will actually make their operations run more smoothly. The last thing a buyer wants is a long, complicated setup process or finding out their new public safety software solution doesn’t work well with their existing systems. Understanding what technology a potential client already has and any specific platform need they have can help you avoid these issues.
The goal here is to give buyers real "solutions," not create extra headaches for them to deal with. Double-check that your proposed products will work well with the services they already have in place. While this might take a little extra time upfront, it can save you from a lot of significant problems later on when starting to negotiate new contracts.
Build Long-Term Relationships
When you're working with government buyers, building good relationships is vital. Even though they have to follow strict rules about how they make purchases, most of them still really value having strong, collaborative partnerships.
By creating strong connections with buyers, you make it easier for them to recommend you if the time comes to source products or services like yours. Government buyers often need approval from others within their own organization before they can move forward with a new vendor. The better your relationship you have with these contacts, the easier it will be for them to champion your product to their colleagues.
When you're planning your outreach to government agencies, try to identify as many relevant contacts as you can. But this doesn’t mean you should just focus on purchasing departments. You should also connect with IT staff members or project managers. The bigger your network, the easier it will be to get your foot in the door.
Leverage Tradeshows and Conferences
Besides just growing your list of contacts, try to get involved in more events that are specifically designed for the public sector. This could include things like government trade shows or technology conferences. These kinds of networking events are great places to meet potential buyers face-to-face.
When you're at these events, really pay attention to the conversations that are happening. Often, people will be talking about the latest challenges they're facing that need solutions, or about new advancements in technology that you can leverage. Your business can use this information to make your products and marketing efforts even better.
Establishing a Compelling Value Prop
The benefits of your SaaS product should be obvious right away. For government buyers, this usually means it needs to be effective, easy to use, and a good value for their money. These are the things you should really emphasize when you're presenting your product.
Try not to get too caught up in showing off every single feature or benefit. Your main goal should be to start a conversation and talk about how you can specifically help a potential client. To do this well, avoid overwhelming them with too much information at once. It's better to focus on explaining what your product actually does and why they might need it. This will help you build a great foundation for more detailed discussions later on.
Start Improving Your B2G Marketing Approach
There are many different ways you can approach your marketing efforts when reaching out to government buyers. But by following the strategies discussed, you’ll help your brand stand out from similar organizations while building strong, long-lasting relationships that can lead to significant growth opportunities.
