Are you a
SaaS development service provider? If so, then what is the most challenging
task of your software as a service distribution model? Is it to revive your
brain-dead customer base or to manage the stock market? Well, there's something
worse than these which most of the SaaS providers aren't stressed about, and
it's to keep the ‘Customer Acquisition Cost (CAC)' as low as possible.
According to
Steve Olenski's article in the Forbes, "Customer acquisition is an
expensive process, however, with proper tips, you can lower your CAC." If
your CAC turns out to be higher than expected, then your business is in a
serious need of salvage. Hire SaaS experts from some Top SaaS Development Company to keep your
business revenue on the right track.
Incorporate the following tips in your SaaS distribution model to reduce
the customer acquisition cost:
1. Identify
& Target Ideal Patrons
Lots of SaaS companies and Software Development Company waste
millions in enticing the ideal personas of their business. As a result, their
businesses sink, and their competitors gain the benefit. To keep your CAC
minimal firstly identify who your target customer is, for example, if you sell
SaaS for HRs, then your ideal patrons will be in:
Large organization- The CIO
Medium scale organization- The Head HR
Start-up- The CEO
Once you have a list of your prospects, then it's a quick litmus test for
you to execute your marketing campaigns.
2. Use
Automation
Marketing automation software is a boon to SaaS Development
Services companies. It can leverage the following benefits:
- Increase
the rate of conversion of leads into sales.
- Improve
the prospect targeting through emails.
- Appropriately
align your marketing and sales team s.
- Improve
your measuring and reporting
- Experts suggest that without marketing software SaaS companies juggle growth because they waste their resources in nurturing unnecessary leads.
3. Reduce
Dependence on Paid Ads
The returns of paid advertising are linear. Once your sales funnel is
optimized, and your marketing strategy is reliant on paid ads, then you cannot
make big reductions in your CAC. To drive down your CAC, start investing in
owned media which consists of your info graphics, magazines, blog, e-guides/whitepapers,
research reports, content, and website.
4. Cut down
Customer Churn
Undoubtedly, the cost of grabbing new customers is always higher than the
cost of up selling an existing one. When your business lacks keeping a hold on
existing customers, then the profit costs do not stay at your advantage. Use
cross-marketing and up selling opportunities to retain existing customers and
build a trust base for new customers.
A recent study conducted by Entrepreneur India proves that on an average,
marketers were able to retarget their potential patrons at the cost of less
than a $
Contact us
Mo. No. +91 9783959155
Email -
info@informaticsmatrix.com
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