Acquisition

Customer acquisition represents a key element for all businesses particularly Saas ones where upfront acquisition costs are offset against uncertain future revenues. SaaS entrepreneurs build their business on the assumption that the sum of all future payments will exceed these initial costs by some magnitude. Unfortunately this simple relationship proves harder to deliver in practise.

This section brings together the top SaaS resources you need to be aware of to ensure your acquisition efforts pay off.

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SaaS benchmarks | acquisition cost and churn challenges

I routinely get asked questions like the following: What is a typical churn rate for SaaS? How much should I pay my SaaS sales reps? What is a good time frame to recover acquisition costs? A few years ago, the best answers I could give were simply based on my own experience and conversations with other SaaS colleagues. However, as SaaS has matured as a category, some high quality SaaS benchmark studies have appeared.

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The complete SaaS guide to calculating and reducing CAC

When you’re starting your SaaS company it can be tempting to get customers any way you can–regardless of the cost, time, and energy. However, if you plan on running a successful and profitable company you will need to balance the total cost of sales and marketing efforts that is required to acquire a customer or your Customer Acquisition Cost (CAC).

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How to track customer acquisitions

This article will walk you through the customer acquisition funnel for SaaS companies. The primary goal is to help you design, analyze, and optimize your customer acquisition process. The secondary goal is to present different perspectives on moving customers through the lifecycle stages and to show how marketing, sales, and customer success teams should collaborate and where each team’s responsibilities lay.

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Key SaaS metrics: customer acquisition cost ratio (CAC ratio)

As a SaaS entrepreneur, there are countless numbers, statistics, and metrics that you need to track and calculate to assess the health of your business, but the sheer number of acronyms can be overwhelming. In this series on key SaaS metrics, we walk you through the most common—and helpful—metrics you need to know to successfully run and grow your SaaS business.

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Customer acquisition: maximizing your funnel

Acquiring customers in the B2B world involves using a variety of marketing and sales steps with the goal of converting prospective customers into paying customers. The process is often thought of as a funnel (see diagram above) where you pour in suspects at the top, and various steps in the process, some percentage of prospects successfully convert to the next stage, making the funnel narrower as the process evolves.

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Customer acquisition & monetization

Presentation describing how Cost of Customer Acquisition (CAC) and Monetization (LTV) are they key elements to get right for a successful business model. Also describes the latest techniques for reducing CAC, including Inbound Marketing, and the author’s own methodology: Building a Sales & Marketing Machine.

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Understanding customer acquisition in saas

Enabling online acquisition can be quite tricky and may pose a slippery-slop especially in selling software online. Why? It is important to note there are a number of steps involved before a visitor becomes a customer and acquisition is the first of such steps.

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How to (actually) calculate CAC

Paid marketing remains an integral part of many products’ acquisition channels, and one of the key metrics is Cost of Customer Acquisition, which is a nuanced calculation with lots of gotchas.

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Why is customer acquisition cost (CAC) like a belly button?

Every business owner has customer acquisition cost (CAC). And a belly button. If that business owner does not know their CAC they are essentially the equivalent of a blindfolded poker player. Every shareholder is a partial owner of the business in which they own shares. If they want to make intelligent decisions about the value of that partial ownership interest in the business, they must understand CAC.

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