CAC Strategy is the Key to Scaling your SaaS Company

aaron bird bizibleStarting a SaaS company and scaling a SaaS company are two very different things.

The same is true for “scaling” a SaaS company in the very early days vs. scaling a SaaS company through the growth phase.

And since every company is different and experiences those “phases” at different times in different ways, you have to be careful with blanket statements about what works and what doesn’t.

Everything is situational, which is why when you read a post where the author says Customer Acquisition Costs (CAC) doesn’t matter, you need to understand the big picture.

Perhaps what you missed was when he said they don’t matter in the early days.

Or maybe you missed the part about how that post was talking specifically about heavily-funded startups with 6-figure Annual Contract Values (ACV) and an Enterprise sales model.

The reality is, every person that writes about SaaS metrics is doing so with certain situations in mind and if you aren’t in the situation the author is talking about, then you may wish to consume that writing with a pinch of reality salt.

Not because what the author said isn’t true, but because it might not be true for your current situation… for your current reality.

Which is why when my friend Aaron Bird, CEO and Founder of Bizible (they’ve raised $10.5M since mid-2011), was talking about how a SaaS company’s Customer Acquisition Costs (CAC) Strategy (and Efficiency) is key to scaling I asked him if he’d share that with the world… and he did.

I have a couple of things to add in the Afterword below, but for now I’ll turn it over to Aaron…

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Let Your Customers Write Your Marketing Copy

sujan-patel-when-i-workI spend a lot of time talking to SaaS companies about how they should identify their Ideal Customers, understand how they operate, know what their Desired Outcome is, listen to what they say, etc. etc.

Whether it’s a focus on acquiring new customers, working to engage prospects already in the pipeline or customers you’ve just acquired… or nurturing and growing your long-time customers, knowing how they operate and the words they use in those operations is critical.

Well, a friend of mine took this idea of “listening to what your customers say” to the extreme by literally getting his customers to write his marketing copy for him. Genius!

His name is Sujan Patel and he’s VP Marketing at When I Work, an HR SaaS product specifically for companies with hourly employees (and the scheduling headaches therein) and I’ll let him share exactly what he did and how it worked out.

Take it away Sujan…

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Exposed! A Top-Secret “Enterprise Pricing” Growth Hack

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When it comes to SaaS, you basically have two sales models: high-touch and self-service. Small, bootstrapped SaaS companies often like to go the low-touch, self-service way.Large, venture-backed startups often like to take the high-touch, … [Continue reading]

The Only 3 Acceptable Pricing Page Discount Tactics

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I get this question from time to time:"Lincoln, is it okay to offer discounts right on your pricing page?"Short answer: No.The longer answer, with some nuanced yesses thrown in,  along with some tactics that you can employ, is below... … [Continue reading]

Engaging at Scale: The Secret to Automating Personal Emails

Customer Success bot

About a year ago I shared my super top-secret way to automate personal emails more effectively - called the "Customer Success bot" method - with the awesome folks on my mailing list.Since then, I've come up with several new uses for this … [Continue reading]

5 Growth Hacks to Supercharge your Invite or Referral System

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When was the last time you referred your friends or invited co-workers into an app after you just signed-up for the free trial?When was the last time you imported your address book right after you opened an app for the first time?Right.So … [Continue reading]

The Myth of Unavoidable Churn

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When it comes to customer churn, there are two kinds: avoidable and unavoidable.But I guarantee that the amount you label as "unavoidable" is actually much smaller than you think.I know, but..."Most of our churn is out of our control, so … [Continue reading]

Customer Success: Achieving their Desired Outcome

Desired Outcome - try again

So... what does Success look like for your customer? That's the question that's at the base of my wildly popular "The Secret to Successful Customer Onboarding" article.But it's not actually a very good question. What does "success" look like for … [Continue reading]

The Secret to Successful Customer Onboarding

the-best-way-to-onboard-new-customers

Customer onboarding has come up a lot lately, which is great since having a poor onboarding experience for your customers can pretty much kill your growth... if not your business.The first in-app experience your customer has with your product … [Continue reading]

7 Sanity Checks for Sending Cold Email

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Email Prospecting, the once-secret method (still) used (to great effect) by the hottest companies to get the attention of the biggest enterprises out there - even if all they talk about publicly is inbound marketing, adwords, and social - is no … [Continue reading]