The subscription economy has exploded over the last decade.

Top SaaS companies with flexible, innovative technologies are in high demand. The lower barrier to entry however, has created a myriad of competitive pressures on SaaS providers. To dominate their markets, tech companies must drive immediate and continuous value for customers.

Last week, I spoke with Nic Poulos, Principal at Bowery Capital, about how “Behavior Based Marketing” is changing the world.

A Simple Example

Imagine if a SaaS company could identify a power user that loves 3 of their product features but doesn’t know about a 4th new feature. The company also knows that other power users in the same field used the 4th feature to achieve their quarterly business in one-third less time.

This information is easy to uncover using a platform like Totango, but to capitalize, the SaaS company needs to take immediate action. Using behavior-based marketing, the company could send a personalized note to the user saying, “We noticed you use these 3 features, but there is another feature in your subscription that will help you reach your goals in a third of the time. Attached is a 2-minute video showing how it works. Click here to get started now!”

This method of “Behavior-Based Marketing” is moving the needle in the SaaS world. Unlocking these hidden opportunities is a critical component to driving more renewals, upsells/cross-sells, increasing trial conversion and making partnerships more valuable for everyone. Check out the full podcast below and let me know what you think.