Marketing SaaS: 9 Amazing Strategies To Help SaaS Startups Sell to the Government
Marketing SaaS products to government agencies can be a great direction for startup businesses. Government contracts for software solutions are fairly lucrative, with agreements often lasting for several years and providing stable recurring revenue streams.
However, there’s a catch. Being able to land these contracts isn’t always easy, especially in SaaS markets, which are usually saturated with multiple competitors all targeting the same B2G (Business-to-Government) buying teams.
Still, there are many opportunities available for forward-thinking startups willing to take their time and execute their marketing pitches effectively. Here are nine strategies that you can start using right away to give your business the sales edge it needs to be successful in the B2G sector.
Marketing SaaS: Understand the Government Procurement Process
Many businesses are intimidated by pitching their products and services to government agencies. This is likely due to the extra steps a business needs to take to ensure they’re meeting the right requirements.
Not just any business can successfully market to government organizations. Depending on the type of services rendered, businesses may need to meet various industry regulations to prove their compliance. This is why, before pitching, it’s important to research what types of vendors purchasing teams are looking for and any certifications or protocols they require before submitting any RFP (Requests for Proposals.)
Build Relationships with Key Decision-Makers
Closing a government contract doesn’t always come down to offering the lowest price or presenting a great solution. Sometimes, it’s about being in the right place at the right time and engaging with the right decision-makers.
To be clear, relationships alone won’t necessarily win you new agreements. Government procurement teams are bound to strict procedures that avoid bias decisions being made when selecting vendors. It’s important to carefully review RFP guidelines, as some of them will clearly outline certain rules like no solicitation clauses that need to be adhered to. In these situations, vendors may be restricted from contacting government officials directly to try and sway their decision.
In any event, when you establish working relationships with relevant industry contacts, they can help you to make sure you’re putting your best foot forward.
Offer a Competitive and Compliant Solution
Government buyers are under a lot of pressure to make sure the solutions they bring into the organization meet strict security standards and support their compliance initiatives. It’s important to remember that, unlike private companies, government agencies have obligations to the public that hold them accountable for where and how they spend their resources.
This means your SaaS solution needs to not only provide innovative features but also have protocols in place to ensure the safety and security of its users. Government agencies handle highly sensitive data collected and stored on behalf of local citizens and authorities. If this information falls into the wrong hands, the consequences can be disastrous.
By benchmarking your solutions against industry security standards and focusing on acquiring relevant certifications, you’re more likely to get more interest from government buyers and move further down the procurement pipeline.
Leverage Government Contracting Programs
When looking to get started marketing to government agencies, there are multiple programs your business can get involved in to help improve your success. The 8(a) Business Development and HUBZone programs, for example, help certain smaller businesses gain the training and support they need to help scale their federal contracts and increase revenue streams.
Outside of these types of programs, getting your business assigned to a GWAS (Government-Wide Acquisition Contract) can be another way to gain access to pre-competed contracts. This means you’ll have exclusive access to various project types while experiencing a much more streamlined process using pre-negotiated terms and shorter procurement timelines.
Develop a Strong Value Proposition
A big part of government selling is knowing how to clearly articulate your product’s value with as little information as possible. This isn’t always easy since many SaaS companies are used to providing an exhaustive list of benefits and features, hoping that one or two of them strike a chord. The secret is already knowing what matters most to your buyer and focusing only on those elements.
Government agencies are focused on specific objectives for their projects. To get their attention, you need to know how to emphasize a solution to their problem, not just provide endless lists of product features they may not even need.
Knowing that they’re likely to get the right return on their investment makes them more likely to want to learn more about your solutions. This is when you’ll have the time to go deeper into the specific benefits relevant to them. At the start of your discussions, however, stick to the basics and focus on building a strong value proposition right out of the gate.
Target Specific Government Requirements
Government organizations can have a large list of needs when procuring new products and services. To give your business a better chance of success, it can be beneficial to explore certain niches that may be less competitive and give you a better chance for more engagement from buying teams.
For example, public safety solutions are in high demand as more agencies look to modernize their emergency response systems. SaaS solutions can play an important role in this process, helping to improve communication and data sharing between dispatch teams and local authorities.
Next-generation 911 infrastructure development is another growing area where SaaS solutions can make a significant impact. By focusing on segmented areas like public safety or other specific buying categories, you can customize your solutions and marketing messages to directly target government agency needs.
Use Effective Marketing and Communication Strategies
Getting your brand in front of government buyers requires a unique marketing approach. Content marketing can be a great way to achieve this. By publishing white papers and creating social media content that directly speaks to government audiences, you’ll be able to prove your relevancy in the industry.
When communicating with buying teams, presenting information in an easy-to-understand format is key. Whether you’re submitting a proposal or presenting your solution directly, keep your message clear and to the point. Emphasize any key benefits or solutions your products and services provide, and make sure to quantify your value as early as possible.
Start Generating More Government Leads
Selling to the government can be a great opportunity to help your startup gain additional revenue sources. By understanding the procurement process, building relationships, and making sure your solutions align with the goals of buying teams, you’ll stand out from the competition better and increase your chances of landing new contracts.
Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.