In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.
In this blog from David Skok he outlines why your cost of customer acquisition plays such an important part of your SaaS startup’s success. It is quite a detailed post but contains important messages.
Software as a Service (SaaS) businesses have been attracting a lot of attention in recent years. As Marc Andreessen has argued ‘Software is Eating the World’. However, for startups looking to build the next unicorn the SaaS journey can be daunting as you look to avoid the SaaS Startup Graveyard.
In this post I look to signpost the top ten resources relating to SaaS businesses that I have read in the past few years.
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.
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).
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.
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.
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.
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.
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.
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.
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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