Archives for February 2015

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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