Comparing Marketing Strategies for B2B SaaS Startups In Europe and the US
By Richard Frankel
March 27, 2023


Entering EU markets is a growth opportunity that is often overlooked by B2B SaaS startups. European B2B software startups spend, on average, 19% of their revenue on marketing, compared to 34% for US-based counterparts. Combine that with low – or no – incremental software development costs, ease of market entry, and you understand why smart B2B SaaS companies are finding profitable growth opportunities in EU markets

Leveraging Reduced Staff Expenses

A striking difference in staff-related expenses exists between European and US B2B SaaS companies. European companies experience lower staff costs, particularly in Southern Europe, due to factors like a lower cost of living and differing market dynamics. Lower staff costs benefit European startups, but sourcing and nurturing talent can be challenging, leading recruiters to explore non-traditional channels.

Navigating Regional Market Dynamics

In international markets, B2B SaaS companies should tailor strategies according to local business practices and preferences. Understanding local market nuances significantly impacts marketing and sales success. 

Adapting to different countries goes beyond localization and can include tailored networking, PR, deal structures, and conference participation. Understanding the varying effectiveness of these channels across regions is crucial for optimizing marketing strategies and ensuring a successful expansion into international markets.

Embracing integrated offerings and partnerships can be a game-changer for SaaS startups. By partnering with established companies, European B2B startups can more efficiently enter multiple markets. These collaborations can also facilitate market growth, innovation, and idea exchange between startups and established businesses, benefiting both parties and the broader market. However, you must choose your partners and deals carefully. It can be challenging for startups to partner effectively with very large corporations who have complex and burdensome business processes and standards.

Demystifying Internationalization

Internationalization can be intimidating – but it shouldn’t be. For example, language localization may not be necessary.

When evaluating the need for international expansion, consider factors like potential market size, competition, and the company’s ability to adapt to new cultural and regulatory environments. 

Localization processes for B2B SaaS startups vary depending on the target market and product complexity, and may involve language translations, adapting marketing materials, addressing local regulations, and customizing product features.

Given the efficiency of market dynamics discussed above, the additional work for localization can often be trivial relative to the opportunity.


The United States and European Union are the world’s largest economies. This presents B2B SaaS companies with expansion opportunities comparable to those in US markets, often at lower costs and higher profits

European and US B2B SaaS companies adopt distinct marketing approaches, with differences in staff expenses and regional market dynamics playing a significant role. Embracing internationalization can be highly beneficial when approached strategically, focusing on mastering individual national markets. By understanding local nuances and fostering partnerships, B2B SaaS startups can enhance their marketing effectiveness, fuel growth, and contribute to the modernization of the European economy.

Ultimately, a tailored approach that acknowledges regional differences and prioritizes localization can lead to success in the competitive B2B SaaS landscape. 

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