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7 Challenges Software Companies Face When Promoting Their Product

Almog Atar
7 Challenges Software Companies Face When Promoting Their Product

Marketing your software service is entirely different from promoting a physical product. It is because customers cannot physically experience or use your service. That is why you will have to utilize creative marketing approaches to succeed. In addition, the SaaS (software as a service) industry is characterized by fierce competition, which increases the challenges and needs for effective marketing for businesses in this sector. 

Many SaaS businesses experience common challenges during the early stages of growth. However, by understanding their origins, these companies can bypass some of these issues on their way to success. Identifying the causes of SaaS marketing struggles and tracing them back to their roots can help organizations quickly identify similar solutions to overcome their difficulties.

In addition, there are several unique challenges that software services may face when promoting their product. Here, you will discover some of those product marketing challenges. 

Why do software companies face many challenges while promoting their products?

When selling software and related services, it is essential to remember that customers cannot interact with the product in the same way as with any other physical product. It means they must do more than try it out themselves and make an informed decision about whether to buy it. Instead, their experience is limited solely to what a software company has provided them. It is one of the primary reasons for the challenges they face with product marketing. 

While it is true that you cannot market your SaaS company products in the same way as physical products, it doesn't mean that you must hide its features or restrict access. Instead, you must find a new way to overcome the challenges to showcase what your company can provide the customers. Applying traditional strategies to your SaaS-specific campaign will only help a little in promoting your software products and services. So, you will have to develop a new strategy to attract customers. 

Software companies face unique challenges, and marketing is only one of these fierce competitions. Other obstacles faced include rapid technological advancements, frequent integration updates, etc. 

Some of the important challenges faced by software companies in promoting their product

Challenges faced in the market – increase in SaaS products and services. 

Based on experts' research and experiences, this challenge holds high importance in SaaS businesses. You must have observed that finding places to sell products is already challenging, and this trend appears likely to continue as the market becomes increasingly saturated. The oversaturation of the market shows that it will become even harder for businesses of all sizes to succeed. 

Challenges in reaching the ideal customers 

Many software companies need help to achieve desired results, especially when reaching early adopters and generating product awareness. It is often due to a need for targeted content to help prospects understand the service in-depth and an overabundance of keywords related to the specific market category. Such factors lead many SaaS companies into premature failure before they even get off the ground. Instead, consider choosing the best developer marketing services to increase your product's awareness and attract the attention of potential customers. 

Challenges faced by new software companies

Getting discovered and understood is often difficult for a SaaS business with a new or niche solution launching into the market. Most customers searching for solutions to common problems want to avoid hearing about robot vacuums. They are only interested in finding solutions that they know (which already exist). If someone has never used your software product or service before, they won't be inclined to pay attention or consider using one without proper marketing. 

Challenges caused because of increasing competition 

Experts already predicted that in 2022, many businesses would adopt SaaS solutions. Cloud application services alone are estimated to grow by around 21% this year (2023). It is no secret that SaaS solutions have risen recently, with more entrepreneurs and innovators eager to capitalize on this growing industry. As a result, analysts have predicted that new SaaS products will enter the market within a few years. It will surely increase the level of competition to its peak, even though good competition already exists in this field. Thus, it is sure to get intense. 

Software companies have to focus more on software and service improvements 

As mentioned above, there is fierce competition in the SaaS field, which is increasing yearly. Apart from that, innovations and more software businesses are also rising. Thus, to make your company stand out from the crowd, you will have to offer something more than the rest of them. 

Challenges faced in defining your niche market

Defining your niche market is also an important challenge, as only some people are fit for the software solution you provide. So, the software companies will have to enhance their software presence and find the exact market matching their solution. Thus, you will have to market your software products and lead to a specific or targeted group of customers. For example, a healthcare organization might not be fit for software used by system integrators. Thus, this method is always better than marketing with the hope of finding the right lead by casting a wide net. 

Challenges faced with the content creation

Nowadays, almost all software companies produce numerous content, but most of them do not offer any benefits. Thus, there is also high competition in content creation these days. Considering this, you should be more purposeful and focused while marketing your product through content. A few deliberate and quality blogs are always better than a list of them - which generally serves no purpose. A quality piece easily captures ideal customers by promoting your product. But it is quite challenging, as many large businesses focus on this strategy. 


All the information provided above shows that getting your customer's attention in every way possible is the best way to achieve success. You can ensure that your company provides the ideal solution by continuously listening to their requirements, offering them value, and reaching them the right way. Conclusively, it is a must for successful companies to evolve based on their growth, especially in marketing.

Almog Atar
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