Micromarketing: What Is It and How To Build a Micromarketing Strategy for Your SaaS Growth

There are several reasons why a SaaS business will choose a micromarketing campaign over traditional marketing strategies to engage existing users and attract new ones.

In this blog post, you’ll learn:

• What micromarketing is
• Its advantages and disadvantages
• How to use micromarketing to convert trial users to paying customers and drive growth

Let’s get started!

What is micromarketing in SaaS?

Micromarketing refers to a type of marketing that solely targets a specific group or niche market.

While other forms of macro marketing aim to reach a large group of your target audience, micro-marketing targets the smallest most specific niche in your customer base.

What is the importance of micromarketing?

Micromarketing provides several benefits to all types of SaaS businesses.

It could be helpful for you to test out a new feature or product on a smaller segment before launching it. Once you have achieved success with this small segment, you can expand to other markets.

Its highly targeted nature means you need to fully understand your target audience. By using this knowledge, you can create effective marketing content and develop products that lead to higher conversion rates.

What are the different types of micromarketing?

You already know micromarketing involves targeting small groups of a large set of customers.

These are the different ways you can group them to get the best results:

• Location-based: target customers based on their location (target your audience living in a particular city or town)
• Relationship-based: marketing to people you know (previous customers or partners, people who requested a product demo before, etc.)
• Industry-based: targeting businesses in a particular industry only
• Customer needs-based: target customers with specific needs (talking to users with one specific need)
• Brand loyalty-based: target the loyal fans of your brand (market an upgrade or exclusive offers)
• Customer re-engagement: remember those customers who signed up but later churned out or became inactive?

Micromarketing vs niche marketing

While both concepts seem similar, they’re completely different.

Niche marketing on the one hand involves segmenting your customers into niches based on several characteristics like behavior, age, job title, type of company they work for, etc.

Micromarketing goes further to target specific groups within those niches.

For example, you could run a micromarketing campaign targeting only the female product team members at early-stage companies.

Pros and cons of micromarketing?

Like almost every other thing, this product marketing strategy also comes with its advantages and disadvantages. These are some of them:

Pros

• Since micromarketing is a highly targeted form of marketing your services, you have a higher chance of reaching and converting the best leads.
• You can control the costs because your marketing is focused on a smaller group of people. This is especially good for smaller companies or if you have a small budget. The more targeted your marketing, the lesser the costs of using multiple channels to reach your target audience.
• Micromarketing leads to user-generated growth. If your small segment of users loves your product or service, the chances of them recommending it to others increase. This could help your SaaS growth.

Cons

• Because micromarketing is highly targeted, it requires a lot of time, research, and resources to build an effective campaign.
• If you don’t pick the right audience to market to, it could result in no conversions. Meaning a complete loss of time and company resources.
• It also leads to a higher customer acquisition cost (CAC), because you’re spending money to acquire fewer customers, but will attract customers with a higher lifetime value.

Micromarketing examples

The appeal of the micromarketing strategy lies in how much success a business gets from implementing it. Here are two good micromarketing examples to inspire you:

• Hubspot

Hubspot’s CEO has been credited with creating the inbound marketing term and strategy. This strategy which is used to attract customers to businesses was developed by Hubspot’s micromarketing efforts to reach small to mid-size businesses that couldn’t afford to use expensive marketing campaigns.

• Uber

Another company with a good micromarketing example is Uber. When Uber started in San Francisco its goal was to help with the city’s taxi problems by providing residents with a black limo service. The news however quickly spread of what they were doing here and got other cities interested in the service.

While entering new markets, Uber creates localized micromarketing strategies speaking to the population’s transportation problems.

For example, when breaking into the Vancouver market, Uber used the city’s rainy weather conditions to convince residents of the value of using their ride-hailing app.

How to use micromarketing to increase the trial to paid conversion rate

A micromarketing strategy works great for attracting users. But what’s next?

Can you use it to also convert users? Is there such thing as in-app micromarketing?

Short answer, yes.

Here is how to apply micromarketing concepts to in-app marketing and increase your trial to paid conversion rates.

Collect user data

When using a micromarketing strategy, you need to know your target niche personally. This is where user personas can help you.

The thing is when dealing with users that already signed up for your product you can collect more accurate data and learn more about them and their needs. This will help you segment your audience in a very granular way.

Use a signup flow to learn relevant data about your users, while they sign up.

Segment users for highly accurate micromarketing

Remember micromarketing targets a small segment of your customer base. This means your marketing experience must be as tailored to them as possible.

The same applies to in-app micromarketing.

Use advanced segmentation and target different users based on separate needs or stages in their journey.

Using a tool like Userpilot helps you segment all users and create contextual in-app messages.

Use contextual in-app prompts to drive conversions

With specific user segments in place, you can now trigger the right message to the right person, automatically.

Instead of adding an in-app banner with an upgrade message that’s always there, use in-app micromarketing and tailor specific messages for different segments.

Take a look at how Loom does it. They use a modal to prompt the user to try a premium feature right when they need it. This is the customer-needs-based micromarketing applied in-app.

A/B test to measure the effectiveness of your micromarketing strategy

A/B tests are done between two scenarios to help you know what worked and what didn’t so you can create a more effective campaign in the future.

Testing the whole micromarketing process ensures you’re investing in the right words and experiences that result in conversions.

Conclusion

Micromarketing helps you communicate in a more contextual way with your user and potential customers.

This increases your chances of success by marketing your product to the best segment before expanding to explore other segments, with a more personal approach rather than a ”one size fits all”.

Try our in-app micromarketing for a better user experience. Book a demo call with our team and get started!