The Most Effective Digital Marketing Strategies for Software Companies
For software companies competing in today’s digital marketplace, simply having an online presence isn’t enough. To capture the attention of your target audience and engage them throughout your sales funnel, you need to develop and deploy a strategic, comprehensive, and consistent digital marketing plan.
Digital marketing is not just about visibility — it’s about establishing impactful connections, showcasing expertise, and driving conversions.
In this 3.7 Designs article, we’ll discuss the transformative power of digital marketing and share top-tier strategies tailored for software companies like yours. Ready to lead the digital race? Let’s get started.
The Power of Digital Marketing for Software Companies
Digital marketing can be transformative for software companies when executed correctly. You’ll want to use it to ensure you’re targeting precise demographics, developing content that resonates with the right audience, and connecting with your audience in the right way at the right time.
Traditional marketing can be hit-or-miss because it goes after the largest possible audience. In contrast, digital marketing ensures every penny is well-spent and directed directly at those most likely to purchase.
5 Optimal Digital Marketing Channels for Software Companies
Choosing the best digital marketing channel for your software company means finding one (or a few) that provides the best return on investment (ROI). One study says that if you regularly calculate your ROI, you’re 1.6 times more likely to get a marketing budget increase. That means the more you know your numbers, the more money you’ll get.
With that in mind, let’s examine the five most effective digital marketing channels software companies should look into for maximum ROI.
Search Engine Optimization (SEO)
How do you shine brighter than your competition in the vast digital ocean of the internet?
The answer: SEO.
According to Search Engine Journal, 92% of global internet users use search engines, making SEO critical for visibility.
It’s the lighthouse guiding users to your shores. By tweaking and tuning your website, you climb the search engine ranks. When used correctly, you’ll get a surge of organic visitors, all with a keen interest in your business.
SEO is not just about traffic; it’s about getting the right traffic — those potential customers genuinely searching for software solutions like yours.
Paid Advertising (Pay per Click — PPC)
Sometimes, waiting for organic traffic isn’t the best option. Enter PPC. It’s the express lane to visibility.
Are you launching a new software product? Want to dive into a specific market segment?
PPC is your ticket.
According to Google and WebFX, the average company sees $2 in revenue for every dollar spent on PPC in 2023. And companies are projected to spend almost $200 billion on search advertising this year alone.
Tailored ads pop up right where your audience hangs out. Every click is a potential lead, every ad a beacon calling them to explore your offerings.
Social Media Marketing
Software isn’t just about codes and algorithms; it’s about people. And where do many people spend their time these days? Social media.
Platforms like Facebook, X (formerly Twitter), and LinkedIn are now marketing tools for software companies. Share stories, flaunt your company’s ethos, and give real-time updates. Social media is a money-making machine for companies when used effectively, and here are some stats that prove it:
- 76% of people have made purchased an item they saw on social media
- 90% of users follow at least one brand on social media, which represents a powerful consumer behavior shift to having a more direct and engaged relationship with brands
- 77% of all businesses use social media to reach their customers (with 44% using it to build brand awareness and 41% as a driver of revenue)
Social media is more than just marketing. It’s a conversation — a chance to build genuine relationships and turn followers into loyal customers.
Email marketing is inexpensive and provides an outstanding return on investment (an average ROI of $36 to $1). Plus, you can communicate with your target audience “one-on-one” — offering more personability.
Email marketing is a direct line to your audience’s inbox. Growing your subscriber list, sending regular newsletters to keep them in the loop, and personalized offers to make them feel special can provide huge dividends in the long run.
Content marketing is the crown jewel of digital marketing because it allows you to showcase your expertise and the value you can provide to your potential clients.
- Infographics show data
- Blog posts answer questions
- Whitepapers dive deep into topics
- Videos give a behind-the-scenes look
A professionally planned and executed content marketing strategy can be a treasure trove of knowledge that delivers immense value. You can position your software company as one that provides tremendous value and is an industry thought leader.
And companies are taking notice of content marketing’s effectiveness: 54% said they are increasing their content marketing budget this year (according to Siege Media).
Leveraging Content Marketing to Create Lead Magnets and Shareable Content
Every day, 2.5 quintillion bytes of data get added to the internet. That’s a lot of content for your potential customers to choose from. So, how will you get people to stop and read yours?
You have to use lead magnets (also called traffic magnets).
Understanding the Concept of Lead Magnets
Lead magnets are more than just content; they’re digital lures — captivating users and pulling them into your digital realm. Lead magnets should be valuable, free, easily shareable, and resonate with readers’ interests. According to Email Vendor Selection, 55% of landing page submissions come from lead magnets and the average conversion rate of landing pages is an exceptional 26%.
Developing Compelling and Shareable Content
Crafting shareable content is an art that you want to get shared and grow your business; it has to speak to your target audience. Dive into your ideal customer’s challenges, answer their questions, and offer unique insights. The deeper you go, the more valuable your content becomes. And when content is helpful, it’s shared.
The Nielsen Norman Group found that most people pay more attention to images with relevant information and largely ignore stock “filler” photos. If you want your content to be shared, ensure your content provides value and doesn’t waste the reader’s time.
Using Case Studies For Proof and Building Trust
Nothing speaks louder than success. Case studies showcase the power of effective content marketing. They highlight strategies that worked, content that resonated, and results achieved. For software companies, these real-world examples serve as a roadmap. They offer a glimpse into what’s possible with the right content approach.
One study found 62% of B2B purchase decisions relied more on practical content like case studies to guide their buying decisions. Plus, they increased brand trust.
Crafting a Cohesive Digital Marketing Strategy
To succeed in today’s competitive marketplace, you must ensure you have a well-thought-out digital marketing strategy in place. Here’s what having a professionally crafted digital marketing strategy helps do for you.
Identifying Target Audience and Buyer Personas
Every successful journey starts with knowing your destination. In digital marketing, success begins and ends with understanding your target audience. Studies have shown that persona-based content increases customer engagement by 73%.
Here are some questions to answer to create your target audience and buyer persona:
- What is your ideal customer’s age range?
- What is their gender?
- What is their annual household income?
- Where do they live?
- What is their educational background?
- What is their career path?
- What are the pain points or challenges that they face?
- What are their goals and aspirations that you can help them achieve?
Crafting detailed buyer personas is the foundation for digital marketing success for software companies. These personas aren’t just profiles but insights into your audience’s desires, challenges, and behaviors necessary for business success.
Setting Clear Goals and KPIs
A marketing strategy without well-defined goals is directionless. One way to set tangible goals is with KPIs. KPIs are a way of measuring success and if you’re achieving the goals you set for your software company.
According to Unsupervised.com, the top three benefits companies get from tracking their key performance indicators (KPIs) are:
- Better goal setting
- Increased revenue
- Improved customer experience/satisfaction
Here are some pivotal KPIs software companies should use to set their goals:
- Website Traffic: Monitor the number of visitors to gauge your online presence’s growth.
- Conversion Rates: Track how many visitors turn into customers or subscribers. It’s a direct measure of your strategy’s effectiveness.
- Social Media Engagement: Measure likes, shares, and comments to understand your audience’s involvement.
- Customer Acquisition Cost (CAC): Calculate the cost to acquire a new customer. It’s crucial for budgeting and ROI.
- Lifetime Value (LTV): Understand the total revenue a customer brings over their lifetime. It helps in strategizing long-term relationships.
- Lead-to-Customer Ratio: Monitor how many leads convert to customers. It provides insights into the sales funnel’s efficiency.
- Churn Rate: Track the percentage of customers who stop using your software. It’s a red flag for potential issues.
Knowing your KPIs and marketing goals is essential for software company success. A professional digital marketing strategy is an optimal way to help ensure you stay on the right track.
Allocating Resources for Each Chosen Channel
The digital marketing arena is vast, with multiple channels vying for attention. But not all channels are created equal. Some might be more relevant to your software product, while others will offer better ROI.
For example, LinkedIn will have the most relevant target audience for your product but may not drive sales as well as Facebook.
Allocate your resources wisely and choose which works best for you. Whether it’s time, money, or human resources, ensure your chosen channels get what they need to thrive. You’re better off excelling on one or two platforms than floundering on six.
For software companies, start with Facebook, Search Marketing, and LinkedIn.
Implementing and Tracking Success
Finally, you’ll need to track your progress and make changes when necessary. Did you know that tracking your metrics makes you two times more likely to reach your goals than if you didn’t track them?
Setting Up Analytics Tools and Tracking Mechanisms
In the digital age, data is gold. But to extract its value, you need the right tools.
For software companies, this means capturing every user interaction, every click, and every conversion. By measuring everything, you gain a holistic view of user behavior. The better the analytics tools used, the quicker you can make the necessary changes and optimize your software business. Using a professional marketing company with excellent analytics tools is ideal.
Monitoring Key Metrics for Each Channel
Each digital channel has its heartbeat, its rhythm. Facebook metrics are different from LinkedIn metrics, and email marketing metrics differ from social media metrics.
And to truly understand each channel’s health, you need to monitor its vital signs. Whether it’s the click-through rates of your email campaigns or the engagement levels on your social media posts, each number tells a story.
For software companies, these metrics are the difference between life and death. They offer a snapshot of what’s working and what needs tweaking, ensuring that every channel functions as well as possible. Optimizing your metrics for each channel will get you more tremendous success quicker than your competitors.
Continuous Optimization Based on Data-Driven Insights
The digital landscape isn’t static; it’s ever-evolving. And to thrive, software companies must embrace a mindset of continuous improvement.
When the data suggests a shift, pivot. When it indicates a trend, lean in.
It’s a dance of adapting, refining, and evolving. Strategies become sharper, more aligned, and more effective with each iteration. Companies that use data to optimize continually are 23 times more likely to acquire customers and 19 times more likely to remain profitable.
Case Study: Salesforce’s Digital Dominance in Software
Let’s look at an example of a software company (Salesforce) that effectively used multiple marketing channels to find success.
Salesforce is a cloud-based CRM leader. They own about a 20% share of the CRM market — four times as much as their next four competitors combined. Their digital success isn’t just about stellar software but mastering diverse marketing channels.
Here’s how Salesforce uses multiple marketing channels to find massive success:
- Content Marketing: Beyond selling, Salesforce educates. They churn out engaging blogs, ebooks, and webinars, attracting and nurturing leads.
- SEO: With optimized content and a user-friendly website, they’re a magnet for organic traffic.
- Email Marketing: They keep subscribers hooked through tailored emails, building relationships and boosting conversions.
- Social Media: Active on platforms like Facebook and LinkedIn, they amplify brand awareness and foster genuine engagement.
- Paid Advertising: Using targeted ads, Salesforce ensures maximum reach and ROI.
- Influencer Marketing: They enhance their reach and credibility by collaborating with industry experts.
- Video Marketing: Salesforce taps into the video trend, crafting content that captivates and converts.
Salesforce has led the way in proper multi-channel marketing, and other software companies should follow.
It’s clear that for software companies, a generic approach won’t cut it — a tailored digital marketing strategy is paramount. That’s because it’s not just about having a plan but having the right one. With a customized approach to your digital marketing, you’ll have the foundation for unlimited growth.
At 3.7 Designs, we recognize the pivotal role of a proper digital marketing plan, especially for software companies aiming to get their business to the next level. Our deep-rooted expertise in digital marketing strategies tailored specifically for the software industry ensures your efforts are laser-focused and impactful.
By teaming up with us, you’re placing your digital marketing in the hands of seasoned experts, freeing you to concentrate on your core business operations. Reach out to 3.7 Designs to get started on optimizing your digital marketing strategy today.