FULLTEXT01.pdf

Marketing Strategy for
Software as a Service
Companies within the
Logistics Vertical Software
Niche
A multiple case study
Fredrik Einarsson & Ardy Daniel Kusnadi
Supervisor
Johanna Börrefors
Karlskrona, Sweden
June 2020
MBA Thesis
DEPARTMENT OF INDUSTRIAL ECONOMICS
www.bth.se/mba

This thesis is submitted to the Department of Industrial Economics at Blekinge Institute of
Technology in partial fulfilment of the requirements for the Degree of Master of Science in Industrial
Economics and Management. The thesis is awarded 15 ECTS credits.
The author(s) declare(s) that they have completed the thesis work independently. All external
sources are cited and listed under the References section. The thesis work has not been submitted in
the same or similar form to any other institution(s) as part of another examination or degree.
Author information:
Fredrik Einarsson
frei18@student.bth.se
Ardy Daniel Kusnadi
arku18@student.bth.se
Department of Industrial Economics
Blekinge Institute of Technology
SE-371 79 Karlskrona, Sweden
Website: www.bth.se
Telephone: +46 455 38 50 00
Fax: +46 455 38 50 57

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Abstract
Background
Utilizing the Software as a Service (SaaS) business model is a distinct trend for marketing software
via the Internet. It allows software suppliers to expand their market globally and to extend their
offering to customers by simplifying their software procurements and ownerships. The trend has been
ongoing for some time concerning horizontal software niches and now intensifies for vertical niches.
Logistics is such an examples of a vertical software niche.
Objectives
This thesis aims to investigate the utilized marketing strategies for companies using a Software as a
Service business model within the logistics niche. The purpose of this thesis is to deepen the
knowledge about how to market a vertical Software as a Service solution within the logistics domain.
Methodology
An explorative research method in the form of a multiple case study is used. Three companies are
sampled using a theoretical sampling approach. SaaS ideally requires less people contact and the
marketing materials are integrated in the published SaaS on the respective companies’ web pages.
Data publicly available on the Internet is collected and used to investigate the utilized marketing
strategies.
Findings
The identified marketing strategies are categorized according to an eight-element model utilized in
earlier studies. The eight elements are product, price, place, promotion, people, process, productivity
& quality, and physical environment. The categorization does help to guide during data collections and
data analysis. The last element physical environment is confirmed to be not relevant since the required
physical material are chosen and decided by customers themselves.
Conclusions
The marketing strategies within this niche is at large consistent with earlier findings. One of the newly
findings is that the sample companies choose one of SaaS strong points that is most suitable to their
offering solution and emphasize it in their marketing strategies. Here are easiness, scalability and
flexibility. Some main deviations however exist. The sample companies do not provide easily
available trial accounts. They instead offer manned online demonstrations. The market is also not
found to be as global as the business model enables. The reason of being that is the fact that the
products/services are too dependent on the integrations to local-market software solutions.
Recommendations for future research
A similar study with a larger sample may strengthen the findings. Performing interviews in addition to
online data collection may extend more information about post customer contact marketing strategies
as well as reasons behind the selected strategies.
Keywords: Marketing strategy, SaaS, Vertical Software, Cloud Computing

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Acknowledgements
The authors would like to thank the supervisors, Johanna Börrefors, Martin Svensson and Anders
Wrenne for pointing into the right directions. We would also like to thank our friends and family for
their support during the nights and weekends which was required to complete this thesis besides our
full-time employments.
Gothenburg, June 2020
Fredrik Einarsson
Ardy Daniel Kusnadi

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Table of contents
1. Introduction ___________________________________________8
1.1. Problem discussion_____________________________________________________ 8
1.2. Problem formulation and purpose __________________________________________ 9
1.2.1. Research Question__________________________________________________ 10
1.3. Delimitations ________________________________________________________ 10
1.4. Thesis structure______________________________________________________ 10
2. Theoretical framework __________________________________ 12
2.1. Cloud computing _____________________________________________________ 12
2.2. Software as a Service (SaaS) _____________________________________________ 13
2.3. Vertical Software _____________________________________________________ 14
2.4. Selling and Marketing Strategies___________________________________________ 16
2.5. Factors affecting SaaS marketing __________________________________________ 19
3. Methodology__________________________________________ 21
3.1. Case study – an inductive qualitative research approach _________________________ 21
3.2. Case Selection and units of study _________________________________________ 21
3.2.1. Case 1___________________________________________________________ 22
3.2.2. Case 2___________________________________________________________ 22
3.2.3. Case 3___________________________________________________________ 23
3.3. Ethical aspects and consideration__________________________________________ 23
3.4. Procedure __________________________________________________________ 23
3.5. Validity and Reliability__________________________________________________ 25
4. Results ______________________________________________ 26
4.1. Case1 _____________________________________________________________ 27
4.1.1. General __________________________________________________________ 27
4.1.2. Selling and marketing strategies _________________________________________ 27
4.2. Case 2_____________________________________________________________ 30
4.2.1. General __________________________________________________________ 30
4.3. Case 3_____________________________________________________________ 33
4.3.1. General __________________________________________________________ 33

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5. Analysis _____________________________________________ 36
5.1.1. General __________________________________________________________ 36
6. Conclusions __________________________________________ 40
6.1. Future research ______________________________________________________ 41
6.2. Limitations of the study ________________________________________________ 41
7. Bibliography __________________________________________ 42

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List of Tables
Table 1 - The 15 largest Internet capitalizing firms in 1995 compared to 2017 (OECD, 2017)____ 12
Table 2 - List of characteristics of the selected cases in the sample_______________________ 22
Table 3 - Eisenhardt's eight steps for building theory from case study research.______________ 24
Table 4 - Result summary ____________________________________________________ 27

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List of Figures
Figure 1 - An illustration of the 5 layers of computational resources and its components (Youseff,
Butrico, & Silva, 2008)_______________________________________________________ 13
Figure 2 - SaaS interaction flow (Rudolf, 2015) _____________________________________ 14
Figure 3 - Overview over the sizes of companies within the different service domains (OECD, 2017)
_______________________________________________________________________ 15
Figure 4 - Cost of buying outsourced application versus developing in-house (Tyrväinen, Frank, &
Mazhelis, 2013)____________________________________________________________ 17
Figure 5 - Selecting business target (Lerouge, 2016)__________________________________ 18
Figure 6 - The Clover Model for selling and marketing SaaS (Tyrväinen & Selin, 2011) _________ 19
Figure 7 - SaaS Customer Lifecycle______________________________________________ 38

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List of abbreviations
API Application Programming Interface
CaaS Containers as a Service
CAC Customer Acquisition Cost
CMRR Committed Monthly Recurring Revenue
CRM Customer Relationship Management
DaaS Data as a Service
DiD Defense in Depth
ERP Enterprise Resource Planning
HaaS Hardware as a Service
IaaS Infrastructure as a Service
ICT Information and Communication Technology
IT Information Technology
LTV Lifetime Value
OECD Organization for Economic Co-operation and Development
PaaS Product as a Service
SaaS Software as a Service
SLA Service Level Agreement
SMB Small and Mid-sized Business
TA Transport Administration
TiVA Trade in Value-Added
TMS Transport Management System

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1. Introduction
Business transactions can be decomposed into a series of activities along a vertical chain (Custom, 2017,
ss. 90-127). Firms may decide to perform the activities by themselves or outsource them to a more
specialized firm. Vertical integration is the action of increasing the number of activities along the
vertical chain that the firms handles. Vertical integration is desirable when the value of an investment
in the resources to perform an activity is higher when made by one rather than the other actor in the
value chain (Custom, 2017, s. 126).
In the software domain, the decision about vertical integration applies whether to develop own software,
buy the development service or subscribe a standardized software solution. It also applies to whether to
buy own hardware, handle the operations and support inhouse or to outsource it. Software suppliers may
decide to vertically integrate forward and to offer all these activities in a bundle. The investment in
servers and support performed by the software supplier carries the potentiality for economies of scale
since they provide the same services to multiple customers. Therefore, the value of the investment is
higher when the software supplier makes the investment rather than the buyer. The configuration of the
value chain therefore leads to the potentiality of greater profits for both the buyer and the seller.
Software as a service (SaaS) is a distribution and licensing model for marketing software products
(Dubey & Wagle, 2007). In the model, the buyer pays a recurrent amount to rent the software service.
The service includes the software, the hardware and the ongoing operations of the servers. The supplier
continuously answers for server operations, software updates and support as well as the development
and distribution of new functionality. The customer gets the software service delivered over the Internet
to its web browser. The delivery method and the payment stream are different compared to on-premises
software, where only the software license is sold, and upgrades are charged. This traditional software
requires the customer to install the software on own hardware at their own choice of location and operate
it themselves.
Software is marketed towards different industries and for different purposes. The term vertical software
industry refers to the organizations that market software towards a certain vertical market, the primary
suppliers (Tyrväinen & Mazhelis, 2009, s. 12). The definition also includes the companies, which
market software used by the primary supplier, the so-called secondary suppliers. Examples of vertical
software include software for banking or for logistics. This opposes to horizontal software which is
developed for general purposes such as spreadsheet applications or accounting software.
The first wave of SaaS software was targeted towards the horizontal software markets, where it is now
widely used (Youseff, Butrico, & Silva, 2008). The SaaS market continues to grow. The first half of
2017 the market grew with 22.9 percent (Gagliordi, 2017). The next wave of growth may be the vertical
software markets which are getting increased traction (Youseff, Butrico, & Silva, 2008). Because of the
efficient delivery method over the Internet, combined with the increased responsibility in the vertical
chain of activities and a global market, software companies can be profitable in small previously non-
existent vertical niches. This thesis aims to study the subject of marketing strategy for the next wave of
vertical software as a service provider, which may very likely be logistics solutions.
1.1. Problem discussion
The marketing method of SaaS companies are significantly different from traditional software
companies. Several papers and theses have been written on the subject. Some examples are, Michelsonas
& Abdur (2012), Ojala & Tyrväinen (2011), Tyrväinen & Selin (2011), Churakova & Mikhramova
(2010), Rudolf (2015) and Panders (2014). Additionally, to the differences presented in the initiation of
this thesis, the suppliers also often market their services directly to their customers over the Internet

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instead of using resellers. This, among others, makes an important distinction to study in their marketing
strategies.
Tyrväinen & Selin (2011) constructed a model from existing literature for marketing and selling SaaS.
The model includes the key factors influencing marketing strategy for SaaS companies and presents it
in an eight-dimensional model. The model was validated using a multi-case explorative case study on
Finnish firms selling software as a service to other businesses. The model was then slightly adjusted and
key performance indicators where identified from the cases. The study does not look specifically into
vertical software niches and does not specify the specifics about what kind of software the model applies
to. Thus, it lacks the perspective of vertical niche of logistics.
In another thesis at Blekinge Institute of Technology, Michelsonas & Abdur (2012) deals with the
subject. The authors analyzed marketing strategies for small companies selling SaaS. Using an
explorative study, they concluded that SaaS companies should use a defensive strategy in the early
phases. They also found that suppliers should address and explain the differences related to traditional
software such as data security related trust issues and ease of configuration and training. Free trials,
social media, blogs, forums, word-of-mouth and email campaigns where found as good initial strategies.
The authors stress the need for further research on the subject. The study takes a rather wide perspective
with a survey sent out a large group of SaaS vendors and does not specifically target vertical niches nor
logistics.
In a study where the value networks of SaaS providers were investigated, Ojala & Tyrväinen (2011)
found that value networks have financial benefits for the companies as well as for knowledge sharing
purposes. In software business the actors in the network include the customer, partners, supplier and
integrators. The authors insist that the networks should be evaluated as a whole, and that value do not
merely come from customers but also from partners and other actors within the network. This study
focuses on a case within the games industry. It is not known from the study whether value networks are
as important for marketing in other niches and vertical markets.
1.2. Problem formulation and purpose
In conclusion the cited literature is becoming of age and focus on young software companies which are
venturing with a new business model. The SaaS business model has grown considerable and become
much more mature since the studies were created. Large multinational companies such as Salesforce
(2020) continues to grow while smaller companies with more specific geographic coverage consolidates
their positions. Some examples may be presented from the Swedish market. There are now several
companies listed on the Stockholm stock exchange using this type of business model with market value
of over 1 billion SEK; Lime Technologies (2020) specializes in industry adaptable Customer
Relationship Management (CRM) solution. Fortnox (2020) markets an accounting solution among
peripheral solutions. Accounting software is also the main product in 24SevenOffice’s (2019) suite for
Enterprise Resource Planning (ERP). All the example companies target horizontal software markets
such as CRM, ERP, accounting etc. and see the Nordic market as their core market.
It is time to revisit the subject and analyze whether the strategies still hold now when the business model
of SaaS has matured and new companies within smaller vertical software niches are gaining market
shares. Do the marketing decisions described by Tyrväinen & Selin (2011) still apply to companies
within small vertical niches? Are there new, altered or obsolete strategies in the ones Michelsonas &
Abdur (2012) found? Are the strategic decisions within smaller vertical niches, such as logistics, the
same as within larger niches? Are the value networks as important within logistics SaaS as in the
companies that Ojala & Tyrväinen (2011) studied? That constitutes the theoretical problems of this
thesis.

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Dubey & Wagle (2007) wrote: “The next wave of applications seems likely to involve transactions
between buyers and suppliers, including procurement, logistics, and supply chain management.”. Since
this mentioned wave may have started recently, the authors of this thesis are encouraged to perform the
validation on the vertical market of logistics and use gained knowledge to validate and update previously
created models on marketing strategies. Then especially the model developed by Rudolf (2015) but also
the work of Tyrväinen & Selin (2011), Ojala & Tyrväinen (2011) and Michelsonas & Abdur (2012)
among others.
The area of logistics is also where one of the authors leads a successful software company. The company
specializes in a software solution for warehouse management. Thus, the practical problem of this thesis
is to assist that company and others to further develop and succeed in a growing business area. The
purpose of this thesis is thus to deepen the knowledge about how to market a vertical software as a
service solution within the logistics domain.
Based on what we described above, we confirm that this is on the interplay of Industry dynamics,
Technology and Innovation as is required by the Master Thesis course curriculum.
1.2.1. Research Question
From the above discussion the thesis may be formalized into answering the following single research
question:
What are the current marketing strategies for SaaS businesses operating within the vertical market
of logistics?
1.3. Delimitations
This thesis will attempt to answer the research question based on current and new knowledge. The study
will include a few cases within the logistics domain and within the Nordic market. Considering this
being a half-semester thesis that is what fits into the timeframe. The reasons being time constraints and
the availability of information for Nordic companies. The expectation is that the gained knowledge will
generalize to other companies and potentially also other domains. This is however not a guarantee and
not the main intention.
1.4. Thesis structure
This first chapter attempted to introduce the topic. It also attempted to present the problem, to discuss
it, its purpose, the research questions and the delimitations of the study. Chapter 2 treat the related theory
of the subject. Cloud computing, Software as a Service, Vertical software, Selling and marketing
strategies and factors influencing SaaS marketing are processed. Chapter 3 presents and explains the
selected study methodology which is a multiple case study. It also presents the threats to the validity of
the work and the ethical aspects and considerations. Finally, it presents the procedure followed while
writing this thesis as well as describing how the cases was selected and describing the cases. Chapter 4
presents the results of the cases one by one case. Chapter 5 analysis the results based on the theoretical
“The next wave of applications seems likely to
involve transactions between buyers and suppliers,
including procurement, logistics, and supply chain
management.” (Dubey & Wagle, 2007)

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framework and related work. The last chapter, Chapter 6, summarizes the work and draws the
conclusions while attempting to answer the research question.

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2. Theoretical framework
2.1. Cloud computing
Cloud computing offerings may be defined as computational resources provided over the Internet
(Youseff, Butrico, & Silva, 2008). It was developed as a response to the fact that data centers in the
world were not managing their computational resources in an efficient manner (Youseff, Butrico, &
Silva, 2008). Data centers where built to sustain peak computational loads while they mostly had
substantially lesser load. By making the computational resources available via the Internet, several
different workloads could be run on the machines. Thereby, resources could be more efficiently utilized
and additional revenue could be created from the previously underutilized servers. It also allowed users
of the cloud to achieve top of the line performance for their heavy workloads without investing in
expensive local hardware.
In Table 1, a comparison between the top 15 Internet capitalization firms in 1995 and 2017 is presented
(OECD, 2017). It shows the trend that most of the main players in 2017 were online platforms with
cloud computing services as opposed to software, media and Internet service providers back in 1995.
Some notable companies from the table are Netflix, Salesforce and Google. This pinpoints the strength
of the cloud computing trend.
Table 1 - The 15 largest Internet capitalizing firms in 1995 compared to 2017 (OECD, 2017)
Cloud computing can be divided into 5 composable horizontal layers (Youseff, Butrico, & Silva, 2008).
Figure 1 illustrates the five layers and its components. Each of the layers can be offered to customers or
used to build up and market an offering of a higher layer. The four lowest layers are Cloud Software
Environment, Cloud Software Infrastructure, Software Kernel and Firmware/Hardware. The top layer,
Cloud Application, constitutes the end user facing software application that are built on top of one of
the lower layers and provided via a web browser. The cloud application layer is sometimes also called
software as a service or abbreviated SaaS. Examples of SaaS offerings include Microsoft’s online
productivity suite Office365 (Microsoft, 2020) and the Shopify ecommerce platform (Shopify Inc.,
2020) among others.

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Figure 1 - An illustration of the 5 layers of computational resources and its components (Youseff, Butrico, & Silva, 2008)
2.2. Software as a Service (SaaS)
Applications delivered using the software as a service model provides additional benefits apart from the
sharing of computational resources and the potential cost-savings received via that (Youseff, Butrico,
& Silva, 2008). It simplifies the work of the cloud provider with respect to maintenance and upgrades.
The developers will be able to continuously deploy smaller patches and upgrades without disturbing the
end user and the end user will have an always updated application. Since the software is always deployed
to the same environment, operated by the provider, the testing and configuration becomes less
complicated compared to having to adapt to different hardware and software configurations.
The SaaS providers benefit from the economies of scale by supporting large amount of tenants, which
lead to more frequent upgrade, faster time-to-market, shorter sales cycle and consequently earlier
revenue recognition (Churakova & Mikhramova, 2010). With scalable architecture and the SaaS concept
of one-to-many, the provider implies a standard package of application for many tenants as possible,
reaching both big and small size customers. Another benefit for the provider is the protection of
intellectual properties because the application is not deployed at customer site but instead kept at the
supplier’s servers.
Cloud applications provided over the Internet are often sold using a subscription-based model (Youseff,
Butrico, & Silva, 2008). This model supplies the provider with a continuous flow of subscription fees
instead of batches of revenue in a license-based transaction. Utilizing this approach, the supplier may
receive a more predictable and therefore more valuable stream of profits. The provider has the advantage
to collect short-term cash on constant base (Churakova & Mikhramova, 2010). It is also easier for the
customer to budget their computational expenses since they are more predictable and come from a single
company and on a single invoice.
The major obstacles for the SaaS providers are the initial investment costs for building up the
infrastructure, security and creation of installed base (Churakova & Mikhramova, 2010). Some offerings
include a service level agreement (SLA). An SLA defines the quality the customer might expect from
the software service and potentially is accompanied support. Further costs may come when some aspects
of the service level agreement are not fulfilled, which lead to penalty payment and eventually customer
loss. Risk of down time can also be caused by insufficient quality and bad performance of the application
software. It can also be caused by security or availability issues.

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Security and availability are two main concerns for software as a service (Youseff, Butrico, & Silva,
2008). Since applications are provided over the public Internet, information needs to be further
safeguarded from malicious actors. Often the safeguarding is performed via encryption in both
transmission and storage. Security becomes essential for SaaS providers to convince customers when
entering the market. Any incident on security during operation may lead to situation that customer goes
to other providers. Availability is also a greater obstacle since the availability of the application depends
on the status of the network connectivity from the supplier to the customer. Such problems are often
mitigated using redundant Internet connections, often via multiple Internet Service Providers or multiple
server locations.
Data ownership is another concern that needs to be carefully considered before using SaaS. Data is
stored on the supplier’s or on the supplier’s subcontractor’s servers. Are the customer or supplier the
legal owner of data in the cloud application? This is important for the customer, especially in case of
the provider’s bankruptcy or if the customer would like to change to another cloud service offering.
Contracts needs to address this issue by stating the ownership the data that the customers inputs into the
software service (Youseff, Butrico, & Silva, 2008).
Tyrväinen & Selin (2011) compiled a six criteria list for compliance with the SaaS business model:
a. Application is accessed via a web browser.
b. A standardized software application is provided without customization.
c. There is no need to install software on customer site.
d. No major integration or installation is required for deployment.
e. The fee is based on the application usage. It is scalable.
f. The same multi-tenant application is applicable for several customers.
Figure 2 below illustrates the interaction flow between the business individual user at the left and the
SaaS company at the right (Rudolf, 2015). The different steps include the business individual using his
computer’s web browser to access the Internet. The web browser is symbolled with the Chrome, Internet
Explorer and Safari icons. The cloud symbolizes the concept of the SaaS application being accessed
over the Internet. On the right side of the figure you will find the software supplier personnel and their
company facilities. The names of some SaaS application suppliers are used as examples.
Figure 2 - SaaS interaction flow (Rudolf, 2015)
2.3. Vertical Software
Software systems, that are developed for general purposes such as spreadsheet applications or
accounting software are called horizontal software (Tyrväinen & Mazhelis, 2009, s. 12). Horizontal
software is consumed in a variety of industries to automate their business processes or used to develop
their own in-house applications based on the horizontal applications. Due to its wide applicability,
vertical software is in most cases bought instead of developed in-house.

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The software applications which are specific for the business domain are called vertical software
applications (Tyrväinen & Mazhelis, 2009, s. 12). It often requires large effort to develop and to
maintain the applications and these application development activities are often not part of the core
business of the company. They are eventually outsourced to independent application software
developers and are finally also offered as ready-made software on the market. This situation opens new
business opportunities as vertical software industry, where the software is packaged and marketed for
certain vertical markets. An example of a vertical market is logistics.
According to OECD TiVA database (2017), services represent almost half of the world’s export in
value-added terms. Examples include transport, logistics, finance and communications services. All of
them are important for trading goods across borders and coordinating global value chains. The diffusion
of selected information and communication technology (ICT) tools and activities in enterprises 2016 is
presented in Figure 3. It illustrates that digitalization brings new business opportunities, but they are not
fully seized by companies (OECD, 2017).
Figure 3 - Overview over the sizes of companies within the different service domains (OECD, 2017)
Figure 3 shows the spread of sizes of companies within different service market segments from the year
2016 (OECD, 2017). The broadband industry has the lowest spread and the highest percentage of
companies with ten or more employees. Thus, it is the most mature market. When traversing the figure
from left the right businesses with lower and lower industry concentration follow. Mid-figure we have
horizontal applications such as CRM and ERP and to the right there are more vertical applications. The
Supply Chain Management category, that includes logistics on which this study is focusing, has still
many market opportunities and a high percentage of very small companies. The figure shows that
Denmark was the leading country in 2016 within this category while Switzerland had to lowest industry
concentration.

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2.4. Selling and Marketing Strategies
“The aim of marketing is to know and understand the customer so well the product or service fits him
and sells itself.” – (Drucker, 2014). Changing business model from selling software as product to selling
it as a service implies not only altering price strategy and redefining organizational processes, but also
modifying the way the application is sold, maintained and supported (Orue-Echevarria Arrieta, 2016).
Eight marketing elements are studied previously in accordance with SaaS viewpoint. They are product,
price, place, promotion, people, process, productivity & quality, and physical environment (Rudolf,
2015). The next paragraphs explain each of them.
In product element, Rudolf (2015) suggests that SaaS marketing should weight toward “evidence”
instead of “image”. The product should be made available and evaluated by the customer instead of a
picture of it and its capabilities being presented by salespeople. One realization in SaaS is free online
trials, where the customers can experience the applications online. It is important to make sure that the
user is sufficiently engaged during the trial. It is also recommended to direct most supplementary
services online, from advertising, purchase to billing (Rudolf, 2015). In other words, the
marketing/promotion/customer acquisition methods must extend into the product in order to get the
product to “sell itself” (Murphy, 2020). The customer may get access to a free trial of the product
automatically, test and review its capabilities independently to finally complete the purchase without
contacting any supplier representative.
Another realization of the product element is strong brands. A strong brand is used to overcome the
customer’s fear of something new as SaaS, that is seen as a risky purchase. However, that might not be
the case for small market niches. Keeping the brand simple and same name as the company is also
recommended. SaaS companies are suggested to create a wide range of services, offer package solution
and include them into the value-added chain (Rudolf, 2015).
Regarding place element, SaaS has no physical boundaries because of the Internet-based delivery
method which enables global access to the service. This is a significant advantage and challenge at the
same time. Only the range of Internet sets the limits. The potential customers are spread all over the
world and every similar SaaS solution provider in the world are a competitor. Here the SaaS companies
are advised to find their trusted advisors instead of resellers (Rudolf, 2015). Investing in channel partners
will benefit to expand the market but it shall not be done at too early stage. Channel partners may also
reduce the margin.
Selecting the right pricing strategy is important for the marketing strategy. To make the application
services attractive for the customer, the price offered must be less than the cost of customer’s in-house
software development, operations and support. The analysis study below is given by Tyrväinen et al.
(2013). Figure 4 illustrates the concept by comparing the full picture of the cost of buying a software
solution and developing it inhouse. The illustration does not include the costs of operating and
supporting the hardware needed for hosting the software solution. That part needs also to be accounted
for because it is included when buying a SaaS. The left side of the figure represents the customer’s
spending when buying software while the right side of the figure represents the costs of developing
software in-house.
“The aim of marketing is to know and understand the
customer so well the product or service fits him and
sells itself.” – Peter Drucker (Drucker, 2014)

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Figure 4 - Cost of buying outsourced application versus developing in-house (Tyrväinen, Frank, & Mazhelis, 2013)
The illustration boils down to Formula 1 which depicts the condition for the number of customers, n, to
achieve in order for the selling of services to become profitable with the desired margin m. The
expressions used in the formula are derived in Figure 4.
𝑛 ≥ 𝑛 =
(1 + 𝑘 )(𝐶 − 𝐶 ) − 𝐶 + 𝑚
(1 + 𝑘 )
𝐶
p − 𝐶 − 𝐶 − 𝐶
Formula 1 - The total cost of developing versus buying software
There are several pricing alternatives for a SaaS offering. The most used one is the low entry cost and
pay-as-use pricing (Rudolf, 2015), since it makes greater customer’s acceptance (Tyrväinen & Selin,
2011). The charge should be considered whether per user, per usage or per transaction. Another
alternative is charging per time period of usage, that gives unlimited access to the application for certain
period, for example a month or a year (Rudolf, 2015).
The next popular pricing model is freemium, where the company offers limited SaaS functionalities for
free and charge extra payment for advanced access or more functionalities. The intention is to acquire
new users, who hopefully likes the service and eventually starts paying for the additional helpful
functionality. In this model, it is important to measure the rate of number of free users who become
paying users. Too low rate is not good sign, but too high does not always mean great (Rudolf, 2015).
The conversion rate ideally around 15 – 20% (Skok, 2020).
The demand-driven pricing scheme is found the most efficient among four dynamic pricing schemes
described and it requires the SaaS company to identify the market specific customer requirements and
their willingness to pay (Rohitratana & Altmann, October 2012). “Many start-ups and growth
companies try to serve customers of all size, which lead to non-optimal results”, citation from Mark
Suster (Lerouge, 2016). Figure 5 shows the mapping area to select business target based on customer
size and involvement effort (touch). The vertical columns list the sizes of potential target customers by
percentage of supplier revenue using three categories: Very Small Businesses, Small / Medium Sized
Businesses and Big Customers. The rows represent the sales strategies: Low touch, Medium touch and
High touch. According to the figure a Low touch strategy should be used for small and medium sized
target customers while a High touch strategy may be worth it and the only strategy working for large
customers.

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Figure 5 - Selecting business target (Lerouge, 2016)
The relevant promotion strategies for SaaS business are providing tangible clues, online and offline
marketing, segmenting sales approach, industry influencers and relationship marketing (Rudolf, 2015).
Providing tangible clues is a challenge due to SaaS intangibility, it can be approached by promoting its
benefits as discussed in SaaS chapter above and free online trials. Online and offline marketing is
achieved by using websites, newsletters/professional magazines as well as paid adds on search engines
are social media. Segmenting sales approach is important in accordance with the targeted vertical
software industry to reach the intended audience. The niches are often small and marketing to broad
may simply not be worth it. Industry influencers play role in SaaS marketing when the promoted services
are part of their stories. One of examples is Marc Benioff, who is the founder and CEO of Salesforce
(SaaS in sales service). Relationship marketing shall make customer to understand the SaaS solution
with appropriate tools such as seminars and conventions besides websites and magazines.
Ideally SaaS requires only little contact with people or even none since basic functions are automated
and reliable. See the discussion about the product element above. The people contact shall only happen
when selling and customer support (Rudolf, 2015). Covering the possible automated function with
people shall be avoided, for example employee doing road show instead of free trial. During startups, it
is recommended to employ salespeople with technical knowledge.
The process of SaaS shall identify all activities and the links among them to detect errors on time and
deliver continues flawless performance. Developing effective SaaS blueprint helps to point out where
the opportunities for tangible evidence, interaction with customers and how to price the service. It is
useful to recognize the company phase in the SaaS life cycle. Different studies define different
phases/stages in the life cycle, but they are almost similar. One study defines three stages: fitting the
market, maintain sales model, and scaling the business (Michelsonas & Abdur, 2012). Four stages are
used by Rudolf (2015). Those are: acquisition, installation, usage and commerce. Tyrväinen and
Mazhelis (2009) defines the five stages: innovators, early adopters, early majority, late majority and
laggards.
Regarding productivity, SaaS companies should have fast operations with good produced output relative
to the used input (Rudolf, 2015). Along with productivity, the high quality of SaaS application must be
a focus point. As already been discussed in section 2.2, the quality includes service availability, security,
performance. Poor quality is the major reason the customers refuse and/or discontinue using the SaaS
application.
Physical environment element means physical part of SaaS, that is the device where the user accesses
the SaaS with, such as computers, mobile phones, tablets (Rudolf, 2015). It is judged not relevant for

19
SaaS marketing since those devices are chosen entirely by the user. The SaaS concept only requires
Internet connection and a web browser to be able to use the service.
2.5. Factors affecting SaaS marketing
To obtain the best outcomes of the marketing effort, factors that are affecting SaaS marketing need to
be identified and metrics shall be used as indicators to get feedback from the applied strategies.
Tyrväinen & Selin (2011) have identified eight factors that are considered to have impact on the choices
of marketing strategy for SaaS companies. The eight factors are concluded into four internally
interconnected categories which are illustrated by petal areas in Figure 6. Those are Business, Target
customers, Sales process and Customer relationship. The text outside the petals in the figure list some
of the appropriate indicators for that category. The categories are described in detail in the rest of this
section.
Figure 6 - The Clover Model for selling and marketing SaaS (Tyrväinen & Selin, 2011)
The Business petal connects the Service and Implementation Model and Provider Size factors. The
Service Implementation Model factor defines how the role of services and implementation are in the
business model. The typical for SaaS companies is self-service. On the other end you will find people
and contact intensive implementation and service. Provider size has major impact to the market the
company will operate and is categorized to micro, small, medium and large companies. Large providers
are more likely to serve added values to large customers as discussed in Section 2.4 and is illustrated by
Figure 5. Small companies are on the other end more likely to serve smaller companies. Some examples
of key performance indicators to track are:
- CMRR (Committed Monthly Recurring Revenue) which shows the amount of ongoing revenue
from current or projected customers (Michelsonas & Abdur, 2012). Higher the better.
- Revenue and head count growth. Grow revenue faster than headcount.
- Cashflow
The Target customer petal connects the Customer size and Buyer role factors. The buyers of SaaS
applications within large customer companies usually have roles such as business managers, whereas in

20
the small companies the buyers are the top managers. The identified target customers affect the strategy
on product element and sales and market communication channels as discussed in Section 2.4. The key
performance indicators are:
- Number of potential customers is a critical indicator to define target market
- Number of customers is an indicator that measures long-term success
The Sales process petal connects the Sales channel and Market communication channel factors. Sales
channel factor determines the completion of the sales transactions. The market communication channel
provides information to the customer to understand their needs of the SaaS applications. The key
performance indicators are:
- Customer Acquisition Cost (CAC) that equals to Total Cost of Sales and Marketing divided by
number of Closed Deals (Michelsonas & Abdur, 2012). Higher CAC requires higher pricing,
which leads to more approval difficulties (Skok, 2020).
- Entry transaction size indicates how large the initial sales deal is.
The Customer relationship petal connects Developments/new sales and Maintenance/after sales factors.
Some of the key performance indicators are:
- Churn indicates the percentage of customers who cancel their subscriptions to the remaining
customers. The ideal target is less than 12% of CMRR (Michelsonas & Abdur, 2012). Churn
rate 2% per month is acceptable, greater than that means something wrong in the business that
leads to low customer satisfaction (Skok, 2020).
- Customer Lifetime Value indicator presents the amount of money that the supplier can earn
during the lifetime of a customer relationship (Michelsonas & Abdur, 2012).
There are two guidelines to fulfill when determining whether a SaaS business is viable for the SaaS
startup/niches (Skok, 2020):
- LTV (the lifetime value of a typical customer) > CAC (the cost to acquire a typical customer)
- Months to recover CAC < 12 months

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3. Methodology
3.1. Case study – an inductive qualitative research approach
This thesis applies a case study with multiple cases to answer the research question presented in section
1.2.1. A case study is a qualitive research method which uses an inductive approach to study the research
question in its natural context and to describe a phenomenon in a systematic manner (Ghauri, Grønhaug,
& Strange, 2020, ss. 101-111). Qualitive research emphasis understanding rather than testing and
verification (Ghauri, Grønhaug, & Strange, 2020, ss. 96-98). Qualitative research is suitable for
understanding organizations (Ghauri, Grønhaug, & Strange, 2020, s. 98). An inductive approach refers
to the drawing of empirical conclusions from the process of observing, analyzing, gathering the results
and theory building in that order (Ghauri, Grønhaug, & Strange, 2020, s. 19).
The research question is of an unstructured nature because the problem is about exploring the used
strategies. When the problem is badly understood and unstructured an explorative research design is
suggested (Ghauri, Grønhaug, & Strange, 2020, s. 63). Ghauri et al. describes explorative research as a
flexible approach which is similar to the process of a detective investigating a murder. In the case of
this study we do not know what to look for (expect for the marketing strategies found in previous studies)
and therefore let the observations guide us about where to continue our work. Our choice is therefore of
an explorative research method.
Case study is a research approach associated with explorative research (Ghauri, Grønhaug, & Strange,
2020, ss. 101-111). A case study is often employed when the problem is hard to study outside its natural
context. It therefore is well-suited for studying companies’ strategies. That is also the reason for the
choice of method for this thesis. It would be difficult to study the marketing strategies outside of the
context of the companies within this niche. The downside with the method choice is however that the
study becomes hard to generalize outside the niche or even the selected companies. On the other hand,
it is not the aim of this study to generalize outside the niche but the generalize within it. Efforts are done
to achieve generalization within the niche via using a multiple case study with a careful selection of
cases, which can be a strategy to increase generalization (Ghauri, Grønhaug, & Strange, 2020, s. 110).
Using multiple cases improves the generalizability (Ghauri, Grønhaug, & Strange, 2020, s. 71).
Case studies may be categorized depending on number of cases, depth and storytelling versus
construction creation (W. Gibb Dyer & Wilkins, 1991). The selected approach involves multiple cases,
shallow depth (because we use multiple cases and have limited time) and puts greater focus on construct
creation than storytelling.
Cross-sectional data was to be collected. Cross-sectional is defined as gathering the data at a single point
in time (Ghauri, Grønhaug, & Strange, 2020, ss. 71-72). The data collection method selected is
observation. Observation works by watching and interpreting what can be seen from the cases (Ghauri,
Grønhaug, & Strange, 2020, ss. 111-114). The main advantage being that we may collect information
in the natural setting. The main disadvantage being that observations are made by individuals and is
sometimes hard to convert to scientifically useful information. The observations will be made without
participation and without notifying the subjects to not affect the natural setting. On the other hand, this
opens some ethical problems which are tackled by preserving the anonymity of the cases in this thesis
by not mentioning them by name.
3.2. Case Selection and units of study
The cases or units of study where drawn from the population of all SaaS companies within the logistics
niche. A theoretical sampling approach was used. A theoretical sample means choosing units of study
based on fulfilling certain theoretical criteria (Ghauri, Grønhaug, & Strange, 2020, ss. 108-110). In this

22
case they need to be within the niche and information needs to be available online about the company.
They also need to be in compliance with the definition of SaaS companies as provided by Tyrväinen &
Selin (2011) and as described in Section 2.2. They were also selected because of the writers’ prior
knowledge about them. The reason being that the business domain is complex and that knowing in
advance about the type of service marketed could provide benefits. The knowledge also helped in
selecting companies as different from each other as possible. Additionally, it significantly helped the
understanding of the business’s products which proved to be time-saving and useful.
The candidate businesses were classified according to the model developed by Tyrväinen & Selin (2011)
to decide whether they should be included or not. The model was presented in Section 2.2. The sample
cases were selected to vary as much as possible in the model dimensions as well as within the logistics
domain. Based on the limited time available for the thesis and other practical issues, cases of three firms
were selected. Depth was also deemed more critical than width because the method is explorative.
Ghauri, et al. recommends defining and presenting the general characteristics of the organizations
studied. The selected firms have the characteristics for revenue, age and number of employees listed in
Table 2. The numbers are rounded to preserve anonymity and of the selected cases.
Case 1 2 3
Revenue 300 MSEK1
300 MSEK 50 MSEK
Founded 2015 20012
19873
Employees 11–50 50-200 11-50
Table 2 - List of characteristics of the selected cases in the sample
3.2.1. Case 1
The first case studied in the multiple case study is a Software as a Service solution marketed globally
within the logistics domain. More specifically the service is marketed towards a vertical segment within
the logistics domain which is called Inventory Optimization. In the inventory optimization concept, the
company includes functionality for assisting with forecasting of demand of products over time,
optimizing stock levels of inventory and automating replenishments. The software service is marketed
and developed by a seemingly rather independent part of a larger Swedish software firm.
The customer uses the service via their web browser but can also make use of mobile applications for
Android and iOS. The latter however have very few downloads on Google Play and App Store. The data
required for the software to perform its calculations and optimizations is usually fetched from the client’s
business system (sometimes also called ERP or Enterprise Resource Planning).
3.2.2. Case 2
The second firm is another Swedish software company marketing a SaaS solution for the logistics
domain. The service is marketed towards Northern Europe, and the target customers are both businesses
buying transportation services and companies selling transportation services. They define the product
as Transport Management which has the purpose of digitalizing, improving the efficiency and
transparency of shipping solutions. Carriers can buy the service to digitalize their incoming transport
1
The SaaS part being a smaller part of a larger company. Revenue for the larger company listed.
2
Not the same year as the SaaS was released.
3
Not the same year as the SaaS was released.

23
bookings and increase the visibility for their customers about the shipments. Transport buyers can buy
their service to receive a common interface and visibility of all their transports, independent on carrier.
They use the service to book, print labels and follow up their shipments. Additional services such as a
freight checkout solution for eCommerce and a freight tracking application for Android and iOS can be
offered in addition.
The service is delivered over the Internet and is reached via a web browser, a mobile app, or an API
(Application Programming Interface). The service may be connected over the API to other software
solutions at customer site such as a warehouse management system, eCommerce platform or ERP
system and work as an integrated part in that solution.
3.2.3. Case 3
The third firm is also a Swedish company. The company is marketing a SaaS solution which aims to
digitalize the supply chain to provide full visibility. By using the software service companies can
exchange the data in the supply chain with their customers and suppliers. They can also control and
visualize their supply chain and have the possibility to improve the performance of their supply chain
using the software service. The service provides visibility of the indicators important for the supply
chain and thereby helps the companies to improve.
The software is accessed via a web browser. It also requires integrations to other systems to get the
required data into the platform.
3.3. Ethical aspects and consideration
Vetenskapsrådet (1990) has provided guidelines for ethical research within humanistic and social
science. The guidelines aim to provide material for considerations between personal aspects and science
aspects. The guidelines include four primary requirements for ethical research. Those include
requirement for informing the concerned about the purpose of the research, participants have the right
to decide if they want to participate, participating individuals should be confidential and their personal
information stored securely and information of individuals gathered should only be used for the research
purpose.
This thesis only studies companies and do not provide any linkage to specific individuals. They therefore
do not need to be informed. Further, it only uses publicly available information and do not provide
names for the companies. The authors therefore determine that there are no ethical aspects that needs to
be further considered and further mitigated.
3.4. Procedure
Eisenhardt (1989) presented a process for theory building research using case studies which this thesis
aims to partially follow. The process is based on the approach for building theory from case study
research in eight steps. Thinking about the process in a structured manner helped increase the
reproducibility of the results. Table 3 lists the eight steps in the process.
Getting Started
Selecting Cases
Crafting Instruments and Protocols
Entering the Field
Analyzing Data

24
Shaping Hypotheses
Enfolding Literature
Reaching Clouse
Table 3 - Eisenhardt's eight steps for building theory from case study research.
In the first step, “Getting Started”, research questions are defined (Eisenhardt, 1989). Those are
presented in the Section 1.2.1. The research problem is focusing on uncovering and understanding the
described phenomenon.
In the “Selecting Cases” step, the population is specified, and a theoretical sample is created
(Eisenhardt, 1989). We perform this case study on the three cases, which are described in detail in
Section 3.2. The section also describes the case selection strategy.
In the “Crafting Instruments and Protocols” step, the data collection process is designed. Collecting
data from multiple sources of evidence strengthens the ground of the theory via triangulation. Multiple
sources of evidence are ensured by gathering data via multiple external sources and by studying the
companies from outside using their marketing material as well as other information of the company
online. First, we started by visiting their websites and review all the available information there. Then
we continued with other external sources linked from the website such as YouTube channels and social
media platforms. The most important social media platform was LinkedIn but also Facebook. Lastly,
we performed a Google search about the company to find other information deemed important. Extra
care was taken on the fact that the websites and other material supplied by the company were not
produced for the specific purpose of the study but often to impress customers and potential investors.
In “Entering the Field” step, data is collected according to above process while analysis is performed
continuously and in a flexible and opportunistic manner (Eisenhardt, 1989). First, we tried to get an
overview and then we continued searching to get a full overview as well as depth into useful material.
The data collection was performed by the two writers independently to provide divergent perspectives
and a stronger ground.
In “Analyzing Data” step, the data collected in the previous step was studied more in depth (Eisenhardt,
1989), both within each case and among cases. The research was also compared to some of the theory
described in Chapter 2. By holding prior assumptions about relationships from that theory section, the
work took benefits from the theory to obtain directions to proceed. The data collected from the case
study was analyzed by looking for commonalities and differences when comparing the firms with each
other.
Next was the “Shaping Hypotheses” step as presented by Eisenhardt (1989). Here the data is
systematically tabulated to promote systematic comparison and to construct evidence which increases
the validity and measurability of the hypotheses. Effort is put to form a systematic coherent pattern to
confirm our assumption. To validate the findings, replication across the cases was conducted. We also
attempted to find explanation for the strategies to enhance internal validity. These activities in this step
are in line with the descriptive validity and interpretative validity explained by Ghauri, et al. (2020) for
qualitative research.
After the formation of our hypothesis, we perform the “Enfolding Literature” step as suggested by
Eisenhardt (1989). In this step we compared conflicting and similar literature. The intention was to raise
the validity of the results and links them to existing findings and theory. This is important for our results
not to be only valid for our cases but to be valid for the whole population. This step should also ensure
that we improved existing theory on the subject. A mapping was performed from the gathered data onto
concepts and theory listed in Section 2. Conceptual definitions were refined. The activities in this step

25
are in line with the theoretical validity and generalizable validity described by Ghauri, et al. (2020).
Both are also emphasized in qualitative research.
The last step was “Reaching Clouse” step. The whole process is an iterative approach where each step
is repeated until satisfaction is achieved (Eisenhardt, 1989). The research results in a refined model of
some of the existing marketing strategies within the domain which constitute an answer to the presented
research question.
3.5. Validity and Reliability
Internal validity refers to the fact whether the results obtained in a study are in fact true (Ghauri,
Grønhaug, & Strange, 2020, s. 68). Using the method of gathering information that we use in this study,
that is to study the companies’ marketing activities from the outside, could have potential disadvantages
when it comes to internal validity. Those are the fact that we potentially not observe all the used
marketing strategies and that the observations do not reflect the strategical choice the company has made
but only the result of them. However, what was deemed more important was the actual activities as
observed by other market actors, because those are assumed to have greater effect on the results of the
marketing strategies.
External validity refers to whether the results obtained of the study are generalizable (Ghauri, Grønhaug,
& Strange, 2020, s. 68). In this study we study a rather small vertical niche. We do not aim for the results
to be generalizable outside that niche but aim for them to be generalizable within it. There are however
potential issues with the number of cases being too few. There might be practices only appearing within
our sample and there might be practices that is not seen in our sample but existent within the niche. We
however try to mitigate that by our sampling approach.
Selection bias is the threat of the subjects not representing the population due to non-random sampling
(Ghauri, Grønhaug, & Strange, 2020, s. 68). This is a threat to this study since the selection was not
random and a very small sample was used. The sample was kept small since depth was considered more
important than width. The validity threat has been attempted to be eliminated by selecting cases that
differ as much as possible from each other as was described in Section 3.2.

26
4. Results
In this section the results from this multiple case study is presented. The results are presented for each
case in a separate section. The cases where presented in Section 3.2. The results for each case follow a
structure where some general observations are listed in a section followed by a section about Selling
and Marketing Strategies as presented in Section 2.4. The results for all three cases are summarized at
the beginning for clarity purpose in Table 4.
Marketing Element Case 1 Case 2 Case 3
Product
- Free online trial
- Marketing
integrated in SaaS
- Use simple brand
- Focus on:
- Offer solution
instead of product
- Freemium
No
Yes
Yes
Easiness
Yes
No
No
Yes
Yes
Scalability
Yes
No
No
Yes
Yes
Flexibility
Yes
No
Price
- Low price
- Scalable pricing
- Scalable package
Yes
Yes
Yes, based on solution
Yes
Yes
Yes, based on software
function
(must have contact)
Unrevealed
Unrevealed
Unrevealed
Place
- Target market
- Offices
- Using channel
partners/resellers
Globally
Europe, USA, Japan,
India
Yes
Northern Europe
Northern Europe
Channel partners
USA and Europe
USA and Sweden
Channel partners,
especially access to
suppliers in Asia
Promotion
- Tangible clues
- Online marketing
- Offline marketing
- Segmenting sales
approach
- Industry
influencers
- Relationship
marketing
- Uniqueness
Yes
Yes
Yes
Yes
Yes
Yes
Highly rated SaaS in
Logistics
Yes
Yes
Yes
Yes
No
Yes
Challenge price
comparison
Yes
Yes
Yes
Yes
No
Yes
Promote no unsolvable
logistic problem

27
Marketing Element Case 1 Case 2 Case 3
People contact
- In marketing
- In selling
- In customer
support
Seminars, conventions
Only non-standard
offers
Yes
Webinars
Only non-standard
offers
Yes
(rely on people contact)
Partly
Yes
Yes
Process Clearly using customer
lifecycle process
Partly clear process Unclear (hidden)
process
Productivity & quality
- Guarantee on
availability
- Guarantee on
security
Proven with high
public review rating
Cyber security
compliance certificate
Proven with historical
online system status
No mentioned
Own statement
Own statement
Physical environment Not relevant Not relevant Not relevant
Table 4 - Result summary
4.1. Case1
This section presents the results from studying the first case. The first case was presented in Section
3.2.1. Initially some general observations about the case is presented in Section 4.1.1. This is followed
up by Section 4.1.2 which provides the results in the structure presented in Section 2.4 where the theory
about Selling and Marketing Strategies was presented.
4.1.1. General
According to the website of Case 1 the company markets its software service towards the small and
midsized businesses’ (SMB)4
segment. The given reason being that larger customers already have
similar support from other software solutions such as an Enterprise Resource Planning (ERP)5
. Their
target markets are US, UK, Sweden, Netherlands and Germany judging by the languages of their
website. However, there is no sign of the product not being marketed globally. In their marketing they
mediate that the type of functionality offered is new to this segment and that it previously had existed
in custom-made software solutions and complicated custom-made spreadsheets. Either developed
inhouse or by external parties.
4.1.2. Selling and marketing strategies
This part is divided in eight sections to reflect the eight marketing elements that was used in theory
Section 2.4. The words in bold defines the discussion around each element.
4
An SMB is a small or midsized company with a maximum of 999 employees (Gartner, 2020).
5
Enterprise Resources Planning (ERP) is an integrated suite of software business applications for supporting a
wide range of operational business process (Gartner, 2020).

28
Product
Key features of the offered product are presented both on a high level and in-depth. The fact that the
software service is cloud-based is a selling point as well as the speed of implementation and integration
to e.g. an ERP system from which the software solution requires data to perform the inventory
calculations. Advantages with a cloud-offering such as cost predictability, performance, efficiency and
availability are brought forward. Another cloud-based advantage presented is the ease of configuration
and integration. The product is showed on multiple device types (computers, tablets and phones) to
symbolize the flexible accessibility. Videos were made available to show the software and its benefits.
The potential customers are provided with case studies, whitepapers and on-demand webinars. The case
studies are used to convince the new potential customers by showing the witnessing from other
customers who have improved their productivities by using the products. Whitepapers try to catch the
new customers’ interest towards the product. The last one is provided to give “look and feel” of the
products. Each time accessing these resources, the accessor is requested to provide contact information,
which will be used to follow up in the later occasion. The product brand is kept simple and easy to
remember.
It is observed that their web site provides very little number of pictures and videos about the products.
This company does not offer a free trial and there is no way of testing the software apart from contacting
the company and get a free demonstration of the software. Ease of getting started and integrating is also
some main points they make.
Price
The company reveals the price online. The service is offered using a subscription model with a monthly
fee which is invoiced annually. They offer three different versions of the software. Each with additional
functionalities and a higher price. Here they even keep the pricing easy for the customers by offering a
full package price for each alternative. The differences on the offered functionalities are explained as
solution features, such as forecasting and stock optimization. No initial fee is charged, and they also do
not offer a freemium version.
An important distinction of software service purchases from on-premises software purchases is the
minimization of risk achieved by paying a smaller fee periodically instead of paying for the full software
upfront. Case 1 stresses this benefit in their marketing by pointing at low risk and low capital outlay. In
older material the company also goes through the other benefits and differences of using a software as
a service solution compared to an on-premises solution.
Place
The company markets their software service globally using Internet-based access. To be useful the
product must be integrated with for example an ERP system which limits the place offering to countries
where they currently have ERP integration coverage. They are recruiting channel partners using their
web site with different kinds of offered relationships. What is interesting here is that they offer mutual
marketing activities. One evidence seen on the web site is that the partner put positive words for the
company.
Their website, social media content and YouTube account often come into the subject of partners. They
present three different partner offerings. One is for vendors of ERP software who would like to offer the
service in a bundle with their own solution. The other two are towards consultant firms or resellers with
two levels of commitment. One is for companies who like to take full customer responsibility and even
carry out support. The other is for companies who simply would like to refer good prospects. All types
of partners receive a part, dependent on level of commitment, of the subscription revenues over time. It

29
is also clear that partners exist and that they put effort into marketing the service in their online marketing
material.
Looking at the partner network previously discussed, they also target markets through resellers,
consultants, ERP partners and using their own selling organization. Having the benefit of being a part
of a greater organization, they take advantage of that organization’s subsidiaries in different countries
to market their solution with a local touch. That yield for United States, Japan, India, Great Britain,
France, Germany and Sweden. They also use reseller in the Netherlands.
ERP partners offer integrations as a part of their bundle offerings. Case 1 however also by themselves
offer integration to other ERP systems which are not categorized as partners. They count heavily on the
ease of integration and that they can integrate to many different ERPs. Specific targeted marketing
material in both written and video form is also presented for customers using a specific ERP system
where the benefits are explained.
Promotion
For this case, the tangible clues are provided by offering several free online demos/webinars. The
website is filled with customer success stories were customer tell how the product have made them more
profitable. They also provide video testimonials where customers talk about the success they have
achieved when using the service. Much of the content does not contain the product itself but knowledge
about how you may deal with certain other aspects of the domain where the product can be used.
Apparent example is their blog where they write about logistics concepts in general. Additionally, they
also provide material targeted towards certain industry segments such as wholesale, retail and
ecommerce.
As previously discussed, they build partner relationship to achieve mutual marketing strategy, for
example with an ERP vendor. They are using professional online magazines in the branch, such as
softwareadvice.com, capterra.com and g2.com, who give high review ratings for the products. Some
influencers are writing about the products in their blogs, such as owler.com and cision.com. They also
participate as exhibitors in several supply chain seminars and conference, for example American Supply
Chain Summit 2019 and Gartner Supply Chain Executive Conference.
The company also have active company pages on LinkedIn, Facebook, Twitter, YouTube and Xing
where they post marketing material. Examples of contents on the social medias are links to webinars,
customer stories and messages to their followers. Examples of content on YouTube is funny
commercials, educational material, content for specific segments, testimonials and videos with pros and
cons of using the service. Additionally, customers can sign up for a newsletter. No paid marketing on
for example Google was observed. Resellers however paid for marketing the product on Google.
People
Order for standard services can be settled online on the company’s websites. Upgrades or specific
adjustments to selectable features are handled by contact person.
The company seek to engage with their potential customers and show their product. This is shown via
multiple links to book a demonstration which are spread out over their website. They want the customers
to provide a lot of specific information about other IT systems in their environment as well as their job
function. The reason given being that, they want to create a tailored demo experience where they tweak
the content of it depending on the answers to the questions. Live chat is also available in web browser
to interact with the company during work hours.

30
Studying the list of employees connected to their LinkedIn-page it is apparent that they focus on
reaching out with their product, getting the customer up and running and supporting the customer.
Common roles are marketing, partner management, customer success and support. The company
personnel also have a greater focus on the use of the software for a business instead of the technical
aspects. The technical development of the product is outsourced.
Process
The website includes a large amount of content. Much of it is however hidden before you enter your
company details. Examples are demos, downloadable guides etc. They want to gather information and
then initiate a sales process with the customer. Since the company also heavily use different partners the
contact is often initiated via them. The rest of the sales process cannot be determined from the data.
From the customer lifecycle point of view, the process is started by getting contact information from the
interested public readers. The potential customers are brought into deals. The customers with successful
stories are offered to become partners with mutual relationship. On the customers’ websites (linked to
the company’s web site), the applied solution gets recommendation.
The company has focused on quality of their offered products, by challenging on the public industrial
reviewers, and they get high review ratings. By using whitepapers approach, they try to convince the
customer for possible high increase in productivity. Success stories from partners and existing customers
strengthen the new potential customers’ confidence by showing that the calculation and methods to
improve productivity are proven in use.
The company addresses the security concerns by providing an overview of all the security risk
mitigations taken by the company. The company provides no in-depth information about availability
and does not provide an SLA.
Physical environment
As mentioned in theory, it is judged not relevant for SaaS marketing.
4.2. Case 2
This section presents the results from studying the second case. The second case was presented in
Section 3.2.2. Initially some general observations about the case is presented in Section 4.2.1. This is
followed up by Section 4.2.2 which provides the results in the structure presented in Section 2.4 where
the theory about Selling and Marketing Strategies was presented.
4.2.1. General
The company has two main SaaS products. The first they call a Transport Management System (TMS).
The aim is to manage supply chains and the product can be used for any size of business with a main
target towards larger companies. They also market a Transport Administration (TA) system which they
market towards the small and midsized businesses’ (SMB) segment. Most of the offering is via the web
browser but the company also provide a freight checkout solution and a free consumer mobile
application.
The company has been in business since 1997 launching a single cloud solution. Over time they have
expanded their offering by acquiring similar companies. They achieve more than 1000 transport services
that handle more than 200 million consignments per year. Their target markets are Sweden, Finland,

31
Norway, Denmark, Poland, and several countries in Eastern Europe such as Estonia, Latvia and
Lithuania.
Like what was done when presenting the results for Case 1, this part is also divided in eight section to
reflect the eight marketing elements that was used in theory Section 2.4.
Product
The company emphasizes the importance of scalability by offering modular software services which the
customer can grow into. The customer can start and choose the basic/core module, where the basic
transactions, such as transport booking, tracking, tracing and printing related documents, can be
performed within global network with more than 159 carriers. The company describes the core features
and the use of them in text.
On this core module, the customer may apply the desired added-value modules, which are called
leverage modules. These modules provide integration to the existing ERP, cost optimization, large
network setup with many warehouses, additional comfort services for users, advanced report system,
and adjustment to specific requirements.
The company uses the fact that the software is offered via Software as a Service as a key point in their
marketing. The presses the case of accessibility from everywhere, no need to install and continuous
updates. Letting the customer know that it is easy to get started because of this fact. The company does
not offer a free trial but offers the possibility for shippers to test their solution online by using a generic
login account.
Price
The price setting is scalable based on the selected functionalities of the products, the number of carriers
connected and the number of transactions. The differences on the offered functionalities are explained
literally as module capability of the products, such as actual status check, transaction history, booking
of collection. It is not solution differences, as used in Case 1 above. The prices for the basic products
with standard offered features are even scaled based on the number of the users and the number of
sending transactions. Thus, the price is both a fixed monthly fee plus a transaction-based fee. The
company reveals these standard offerings. Additionally, the company provides three levels of SLA
(Service Level Agreement) for the support service that can be added to the package.
Place
The company offers their service over the Internet. The software is targeted towards some languages
with a gravity towards the Nordics. Since it is offered over the Internet the service can be bought by any
company. It is however not of as much value for potential customers further away from their main
market since a main point with the service is the network of accessible carriers. Investigating the list of
carriers, they also are mostly from Northern Europe and therefore the service has a greater value offering
for potential customers in the Nordics.
In addition to the online sales the company also has country specific subsidiaries in the Nordic countries
where customers may get help in their own language.
The company has an extensive partner network which a search on the web reveals. On their website they
present their partner offering as a way of giving suppliers of other software extra features to offer their
clients by connecting the services. By connecting with the companies service partners may get the

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additional benefits of offering Case 2’s services seamlessly integrated to their customer base. It is not
listed whether some other financial benefits exist except from the potential increase in value partners
can offer their clients. The available integrations set an additional limit on the geographical coverage of
the service since it is often used in combination with other cloud services.
Promotion
The company promotes their products through their websites and categorizes the intended audiences
into four groups: the shippers, enterprises, transport carriers and partners. By doing this, they lift the
selective product features and benefits to suit the customers’ needs based on the customers’ roles in the
transport ecosystems.
On their websites, the company lists the existing customers as the shippers as well as the carries. They
publish own newsletter (reference magazines) as media to inform the company news, product/service
updates, customer experiences with the offered solutions.
Quite many bloggers on Internet writing about the integration of the offered products to certain known
systems. The company itself provides links from their website to the collected bloggers’ sites. They
even put the price comparison against the competitors in the same branch with similar offers.
The company has an active Facebook page where they post information about integration partners,
customer cases, webinars, new features, promotions, and holiday wishes. That is also the same content
as they present on the LinkedIn as well as Twitter. No paid marketing on for example Google was
observed.
People
Simple order for standard services can be settled online on the company’s websites. Specific adjustments
to selectable features are handled by contact person. Customer support is also provided with personal
contacts. Sales are in addition performed both by phone and on-road. The company has employed
geographically spread out sales managers.
The company has a webinar channel where they regularly invite customers to webinars with key persons
as well as representatives of partner companies. The personal contact is involved in the webinars as
much as the content of it.
The company presents its management team signaling success and confidence. Accordioning to their
LinkedIn page the company personnel are equally divided between technical and non-technical
personnel.
Process
Like case 1, the process is started by getting contact with the public readers of their websites. The
potential customers are categorized at the beginning by the chosen website they take contact to.
The sales process is either initiated from the website, by phone or via a partner. What happens next
cannot be determined from the data. The company’s website lists all customers who have used their
services, which are categorized as shippers, enterprises and transport carriers.
The company includes free support by phone in their offering. They stress the case that they have
competence and by offering free support they signal that the software is easy to use and has great quality
which extends into the next marketing element.

33
The company has focused on quality of their offered products, by providing online up-to-date system
status, performance metrics and historical past incidents. The shown information gives the image of how
good the system is with very low downtime. Additionally, the company offers an SLA that regulates the
speed of support request actions but none for the availability of the service. They however do not go
into the security aspects in depth.
They also present a reliable but forward-looking brand image by pointing out their time being in
business, their history, their large customer base, and their workforce. By pointing at their size and the
fact that they are market leading, they also signal quality.
4.3. Case 3
This section presents the results from studying the third case, which was presented in Section 3.2.3.
Initially some general observations about the case is presented in Section 4.3.1. This is followed up by
Section 4.3.2 which provides the results in the structure presented in Section 2.4 where the theory about
Selling and Marketing Strategies was presented.
4.3.1. General
This company offers a cloud-based IT solution that provides end-to-end visibility of customers’ supply
chain, handling delivery problems and assuring that supply meets demand. Generally, this third case
makes much less information available online which is also a reason for shortage of description for this
case.
This part is divided into eight sections to reflect the eight marketing elements that was used in the theory
Section 2.4. The words in bold defines the discussion around each element.
Product
Through their websites, the company emphasizes their offers on the supply chain solutions, rather than
the products to buy. They explain the solution concept and describe that the solution can flexibility
integrated to the user systems in different specific industry domains. Several mentioned domains are
automotive industry, building and construction, consumer goods and packaging, health care, industrial
applications and electronics.
In 2013, they published a free online multi player game in supply chain management that was based on
the solution to be offered. It simulates food supply chain where each player should achieve the best
result for the whole supply chain.
To convince the user, the company provides a free trial user interface monitor in 2015 that can be
installed in mobile phones, where in real time the user can monitor the part of supply chain solution
handled by the company’s products. They even challenged the potential customers to contact their help
desk when the users were facing problems with the interfacing to the solution platform.

34
Overall presentation on their websites give impression that no issues/problems in the supply chain which
cannot be solved by their solution strategy.
The company uses the fact that they provide a cloud-based solution to market their product. Already in
the headline they use this fact as well as on numerous other places in their material. Going deeper they
provide the detailed advantages of the fact. They emphasize that it is standardized, always updated and
that a monthly fee is billed.
Price
The company does not reveal the price online. They provide a simple login via the Internet for the
customer who wants to obtain proposal or make a deal. The cost of the service is incorporated into the
monthly fee, that is based on the services used (“pay-as-you-go” principle). But what kind of services
that determine the prices are not exposed at all without contacting them. No expensive consultants and
license fees are introduced according to their web sites. The intention is to give predictable and fixed
low cost to the user. The company also offer different packaging for support although no pricing is
mentioned.
Place
The company markets their service online. It does not present any geographical limits. The company
has five offices of which one is in the US and the rest in Sweden. The company also sells via partners
but there is no formalized offer to partners to be find. Some are however found when performing a
Google search. The company also lists some major big-company ERP companies as partners which
might suggest that they integrate to those services themselves. The knowledge about how to integrate to
certain systems might provide geographical boundaries for the market coverage.
Based on their news and blogs, the company made collaboration several years ago with certain big
company to build network connections to the suppliers in Asia, specially China. With this network, they
offer the customers in Europe and US easy and wide access of suppliers in Asia to be integrated to their
supply chain solutions.
Promotion
Wide range installed base industries with focus on flexibility are used as main tool to promote their
solutions. They have at least five industry segments and still expanding to other segments. Whitepapers
for each segment are accessible for the readers after subscription.
The company provides webinars. The webinars are present a problem-based topic rather than a focus on
the product.
The company has an active LinkedIn page where they post interesting topics for their rather large
number of followers. Topics include invitations to webinars, blog posts about general logistics topics of
interest, job openings, information to their customers due to e.g. health issues and successful customer
cases. They also have a YouTube channel but that does not look to be active.
Although the company is visible on Google it is not visible in any observed paid ads.
People
Since there is no price available online and neither the structure of the offered services, the potential
customers must make personal contact with company to understand what to buy on which price. Even
for the readers who just want to know further, they must do new user registration.

35
New user registration is done by contacting help desk, which means people contact as customer support
exists and is started here. As described above people contact occurs when the company responses to the
customers to resolve issues or problems.
People contact is also conducted during selling process and webinars. These mean that this company
has more people contact compared to the other two previous cases. Judging by the companies LinkedIn
page most of the employees are either consultants, project managers, software engineers or similar roles.
Process
There is no clear process of how to become a customer presented. The website is more of a storefront
where you must get in contact with the company to proceed in the process. Under sales, the contact
details for the top executives are presented. The next steps in the sales process cannot be determined
from the data.
The company publishes whitepapers and industry specific cases together with customers. The company
has a very low visibility and numbers of reviews on software review sites.
Additionally, the company guarantee the operation availability by providing a Service Level Agreement
for both the availability of support and the availability of the service. They also emphasize that the
service is fast and secure by applying strict security standards, authentication, encryption and processes
for backup and recovery to ensure data protection, without going into detail about the matters. No
security standard compliance is revealed.

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5. Analysis
This section provides the analysis of the in Chapter 4 presented results. The analysis is structured in the
same way as in that section but instead of going case by case this section takes a combined and
intertwined approach to the text in attempts to tackle the research question presented in Section 1.2.1.
Section 5.1.1 treat the general aspects of the cases marketing strategies while Section 5.1.2 deal with the
aspects presented in Section 2.4.
5.1.1. General
Case 1 makes room for their software in the marketplace within this small niche. An evolution from
custom, to outsourced and to standardized software is presented. That is something that well reflects to
general trend of vertical software which was presented in Section 2.3. By their solution they therefore
try to package a solution that has an existing need and offer it on the market. By offering it as a service
they look to be opening a small global niche that previously had no specialized actors. Case 2 offer a
more mature software solution and has less of a need positioning it in the marketplace. Finally, the third
case puts more focus on the features and benefits of the product than the market gap.
Case 1 and 2 stresses the ease of integration, ease of getting started and the fee structure. Case 2 also
make the buyer feel safe by pointing at security mitigations. Pointing at the benefits of SaaS is well in
line with previous research as well as making the customer feel safe.
The authors conclude that the marketing strategies within the niche of logistics is in most cases
consistent with the findings in earlier reports such as Michelsonas & Abdur (2012) and Rudolf (2015).
The studied cases still use a defensive strategy, although more offensive than what was previously
concluded. All the cases are clear with the fact that their offering is cloud-based. The cases also contrast
the differences to traditional (on-premises) software related to security, ease of configuration, and
training however this does not look to be the most important aspect anymore. The in-depth information
about the advantages of SaaS is in the three cases presented but hard to find. Instead features and use
cases are more strongly argued for. Possibly, the services are now more feature rich and the market
understanding of the main benefits of using SaaS is much higher and therefore do not need to be
explained to such a large extent.
Rudolf (2015) suggested that SaaS companies should provide evidence of the product instead of an
image of it. One realization of that is free trials which Michelsonas & Abdur (2012) brought forward.
Free trials where not as used by the studied cases. Only one of them provided a freely available demo
version of the software that could not be used in production and that was Case 2. Case 2 is also the most
volume-focused software solution in the sample. A possible reason being that software services in our
sample are too complex and needs to much configuration and connections to adjacent software solution
before being useful. Possibly, the software suppliers want to add more of a human touch on the selling
process which is supported by the fact that they instead offer assisted demos. Another possibility is that
the companies do not judge free trials as an efficient strategy. Rudolf (2015) also stated that it is
important that the user is sufficiently engaged during the demo which here could be another reason.
Another explanation may be that the free trials are offered when the maturity of the sub-niche has
evolved, and the product has reach certain level of volume and package quality. Possibly, the
investigated sub-niches of logistics have not reached that point.
Michelsonas & Abdur (2012) also suggested the use of free trials but also social media, blogs, forums,
word-of-mouth and email campaigns. All the cases used social media where the most setup-requiring
software used it the less. Blogs where used by all the suppliers. Two of three cases used newsletters.

37
The cases also promote their general knowledge within the niche by producing blog posts and other
types of media about general industry subjects with a smaller connection to their product. Rudolf (2015)
also suggested segmenting the sales prospects. Two of three companies used segmenting in their
marketing and additionally to providing general information about logistics they also provided
information for industries requiring that competence area and how they specifically may benefit from
the product. None of the companies however was observed to pay for advertising on e.g. Google. None
of the companies shows numerous pictures or videos of the product. This is probably intended to steer
the reader’s focus to their service solution instead of the product itself, and this is in line with SaaS
target to sell the service, not the product.
Rudolf (2015) also writes about the importance of strong brands, keeping the brand simple and the
company name same as the product. Regarding branding of the offered solutions, all three companies
are keeping their brands simple, but the second company has a brand that is not linked to the provided
service and is not easy to remember at the first sight. It is experienced by one of the authors when trying
to find back the websites at the beginning. The first company relates the brand to the warehouse stock
and the third one to supply chain management. As mentioned in theory, keeping the brand simple is one
of the marketing strategies. By being easily remembered, it can be easily brought up in casual discussion,
like in changing room or lunch time. Two of three cases also have the same name of the product as the
company.
It was concluded by Rudolf (2015) that SaaS companies should offer a range of services and provide
packaged solutions. This scalability aspect is something that is provided by all three cases, although
they present differently on their websites. All of them offer different packages with additional features
for each level. The third case even has different levels of support.
It has previously been suggested that SaaS companies are not limited by the place element (Rudolf,
2015). In this thesis we find that two of three companies market their service globally. All three cases
are however dependent on the network of integrations that they have created. They need to be able to
integrate the customers adjacent software systems to provide a useful service. Adjacent services are
often different for different geographical markets which limits the geographical market for the product.
Increased networks of integrations may however be invested in but requires considerable investment
and maintenance. In the case of the second case studied, the company is also limited to having integrated
the local carriers for the market they are targeting. That limits their market and may also be the case for
their geographical market targeting.
Working in a small niche the software provider must cooperate with providers adjacent services and
software. It is clear from the marketing material of Case 1 and 2 that different type of partners is
important for their business. The company cooperate with both other software providers of which
services are integrated and other companies that have access to a customer base. The companies share
the fees with the partners and resell each other’s service. They have created a rather flexible network
where the network helps them to be visible in the marketplace. The company also integrates themselves
to several other services which further broadens their market. This is not in line with previous findings
by Rudolf (2015) who suggested that trusted advisors should be used instead of channel partners.
It looks as though the network creates additional value for the participants which is well in line with the
findings of Ojala & Tyrväinen (2011). Customers gains increased value because other market actors
have knowledge about the service as well as invested in integrations. Partners gains value because they
can offer an additional useful service to their customer base. Lastly, Case 1 gains value because their
service is marketed by others and therefore are their marketing costs reduced. The service may also be
used in combination with more other services and in combination with those provide more value for
their customers.

38
All the companies in the sample use a modular pricing which allows them to increase the revenue of
customers over time. It also allows them to compete for different sizes of customers and customers with
different needs. Both Tyrväinen & Selin (2011) and Rudolf (2015) suggested a low entry cost and pay-
as-you-model. This is confirmed by our sample. Some use a monthly fee while others use a combination
of monthly fee and transaction-based fee. None of the cases however use a freemium version which was
suggested by e.g. Skok (2020).
The selection of pricing model is tightly linked to the target group. One of the companies within the
sample targets SMEs, another targets larger companies, while one targets all customer groups. The one
targeting all customer groups is also the largest in the sample. Using a modular pricing with different
packaging and combining that with a transaction-based pricing the company looks to succeed. Also, the
other companies use a modular pricing which helps them target sub-groups within the target group as
well as increase sales over time on existing customers.
All three companies in our sample used webinars where employees, partners and industry influencers
discussed a subject either directly connected to the product or tightly linked to it. Rudolf (2015) reported
about industry influencers approach. The course of action found in this thesis is using similar approach.
The people involved in the webinars often have a very deep technical knowledge which is in line with
other previous findings (Rudolf, 2015). This is however more apparent in the two less mature sub-
niches.
Regarding people contact, Rudolf (2015) recommended to keep as little as possible, limited to sales and
customer support. All three companies somehow follow this recommendation, but the company from
case 3 has more percentage of people contact than the others, since they encourage potential customers
to take people contact with them, even for simple matter. They might have certain reason, for example
due to flexibility of their offering.
It is difficult to analyze the process against the theory mentioned in Chapter 2, due to limited access.
Based on the available information on the websites, the authors can analyze the process from the
customers’ perspectives only, especially from Case 1. A SaaS customer lifecycle (Peermedia, August
28, 2019) shown in Figure 7 below is found matching to illustrate the lifecycle diagram used by those
three cases.
Figure 7 - SaaS Customer Lifecycle
In the figure the subscriber is the reader who has interest in the offered solution before making a
purchase. Lead is the subscriber who has deeper interest and start to contact salespeople. User is the
paying customer, which determines the most important stage. Satisfied user can be evangelist, who
shares the good experience, which in turn will persuade a new subscriber. On the other hand, the

39
unsatisfied user becomes churned user. It is often difficult to get feedback, since they are unconnected,
but it is worth to ask during cancellation confirmation (Peermedia, August 28, 2019).
Rudolf (2015) also brought forward that quality and productivity should be a focus point. All the cases
in our sample emphasized the productivity increase created by their product offerings. Two of three
highlighted that their service is secure while only one went into depth about the security aspects. That
case focused on security and privacy aspects by providing security compliance “Defense in Depth
(DiD)”. It is a concept approach to cyber security. To protect valuable information a number of defensive
mechanisms are layered (Forcepoint, 2020). Two of them emphasized availability, while only one
convinced with numbers and availability information. Two of three provided an SLA while one of them
limited it to support matters. The largest of the companies which also provide the most time-critical
service used its size to signal that the service is reliable instead of contracts.

40
6. Conclusions
This chapter summarizes the main findings of this thesis. The findings are based on analyzing the
empirical information in relation to the collected theories as referenced and described in Chapter 2. This
chapter also uses the findings to answer the research question. The main conclusion is that the result in
most cases are consistent with the theories which are based on the findings in earlier work. Some
deviations however exist. Most notably related to the geographical market and the lesser focus on
product and more focus on people that comes with not making available trial accounts.
This study was set out to answer the research question that was first coined in Section 1.2.1. The research
question is restated here for convenience:
What are the current marketing strategies for SaaS businesses operating within the vertical market
of logistics?
The authors brought up eight elements in general SaaS marketing into discussion, that are results from
the previous studies. Those elements are product, price, place, promotion, people, process, productivity
& quality and physical environment, in which the last one can be neglected. The marketing strategies
are grouped based on these elements by lifting the important actions for each element.
The SaaS marketing strategy for logistics is started from designing product with intention to get the
product to “sell itself”. This is achieved by incorporating the marketing, promotion and customer
acquisition into the product. The product design shall enable scalability of a wide range of services that
are packed into several value-added solutions. Keeping the brand simple gives positive effect in
marketing.
The business model of SaaS itself requires no physical place, but in logistics, the offered SaaS solution
needs to be integrated to the clients’ ERP systems, which are various and often local to a certain
geographical region. The more variants of ERP to integrate, the wider market can be accessed. The same
relationship applies to other software solutions surrounding the SaaS solution such as TMS or TA.
Channel partners are used in the studied cases. The companies are trying to expand their market and
they are not at early stage of the company’s life cycles.
The SaaS pricing strategy in logistics uses the most common one with the low entry cost and pay-as-use
pricing. The different charge alternatives as mentioned in the theory by Rudolf (2015) are applicable.
Freemium seems not the strategy to go in logistics since the very basic solution requires integration to
other software solutions and considerable configuration. All three companies in the study are using the
demand-driven pricing scheme and their target markets are small/medium sized businesses and low
touch as described in Figure 5.
The first promotion strategy that is used in all studied cases is online and offline marketing using
websites, newsletters, blogs, whitepapers and even professional magazines. Paid ads like Google seems
to be not worth it. Segmenting sales approach and relationship marketing to make customer to
understand with webinars are considered the next important strategies. Free online trial is not chosen as
alternative for some reason.
Like other industries, the people contact shall be reduced to minimum. In logistics SaaS offerings it is
limited to selling and customer support. Putting effort to automate any possible automated functions
shall be prioritized before putting human effort to do the functions. Conduct webinars instead of road
show.

41
The process discussed in this study is the SaaS customer life cycle. The strategies are to attract as many
subscribers as possible, catch the leads and convert them into the users. By having the users of the
product, it is important to detect errors on time and deliver continues flawless performance, so that these
users can be encouraged to be evangelists of the product, instead of becoming churned users.
Productivity and quality must always be the focus point since it is very easy to lose customers in SaaS
business. Security standards becomes popular in SaaS industry requirement.
This study results may contribute to help the SaaS vertical business niches to apply marketing strategies
to expand their market.
6.1. Future research
Future research in this area of the study should address whether the types of logistics firms and their
roles have impact on how the marketing strategies shall be weighted or adjusted. Conducting interviews
to the concerned companies may give precise reasons behind their decision on marketing strategies. It
may also shed more light on the parts of the marketing strategy that happens post contact from a potential
customer. Involving the factors affecting SaaS marketing may give more accurate impact of the chosen
strategies. Further study with larger sample sized and include the companies at early stage of their life
cycles will enrich the study results.
6.2. Limitations of the study
This study only studied a few companies which utilizes a Software as a Service business model within
the vertical software niche of logistics. Although a theoretical sampling approach was used to mitigate
the issues regarding generalizability it can be questioned whether the results from the sample can be
generalized to the whole population of companies utilizing a Software as a Service business model
within logistics. The authors however argue for that not being a major issue since that question is
about finding utilized marketing strategies. Even from a small sample many marketing strategies could
be identified even if their most probably exist additional marketing strategies within the niche. The
results are thus not a complete set of marketing strategies applied in the niche.
The chosen method of data collection has some limitations. The first being that we could only identify
a subset of the marketing strategies used. All strategies that were applied after the potential customer
contacted the companies could not be identified. It could also not be identified whether the company
used any form of outreach sales such as cold calling. These types of strategies where however not
deemed interesting since they were supposed to be applied similarly to strategies applied for other
business models. It however limits the results obtained.
Lastly, this study also has the limitation of not being able to explain why a certain marketing strategy
was used. The study however was set out with the objective of identifying marketing strategies and not
explaining their purpose. As was stated in Section 6.1 performing and interview-based study could
help answer those questions but that is another type of study.

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