What are the best ways to reduce CAC for SaaS companies?

Hi everyone,

I work at a SaaS company and I’m looking to hear about others’ experiences when it comes to reducing customer acquisition costs (CAC). Every company wants to reduce how much they spend on acquiring new customers while getting the best results. So, what do you think are the best strategies to achieve this?

Different companies need different strategies. But one thing that stands out to me is the idea that ‘spending as little as possible on marketing’ is not the best approach. Marketing should be viewed as a profit center, not just a cost. When marketing teams focus on profit margins and CAC goals, they can come up with strategies that lead to better results. Of course, testing and changing strategies is key.

For example, we helped a client who wanted to build their brand and drive traffic. We managed to boost their organic search traffic nearly 100%, but then the question became, ‘Why aren’t they converting?’ The issue was that driving traffic doesn’t always lead to conversions, so we had to focus on optimizing their entire marketing journey.

So, to reach a good CAC, it’s important to understand the whole customer journey and make improvements at each stage. Don’t forget that brand awareness is part of this process too. It helps build long-term value, even though it might not show quick results in terms of CAC. Just make sure to budget wisely and treat marketing as a profit builder.

@Beryl
OP, what u/sneakerstrategies pointed out about combining content journeys with specific goals is spot on. Best advice you’ll get.

On a tactical note, you can cut some costs by reusing and speeding up content production for different stages of the buying journey. For example, you can repurpose webinar content into blog posts, videos, and infographics. Another good strategy is to evaluate your tools and expenses (like martech or agencies) and figure out which ones are giving the best return on investment.

But remember, it all depends on understanding your audience’s pain points, where they hang out online, and engaging with them in the right way. You’ll need to test different things and have strong internal communication to know what works and what doesn’t.

A lot of reducing CAC is about having clear goals between marketing and sales teams. If leadership doesn’t fully understand your target audience, you might end up wasting money on a broader, more expensive strategy. It’s a constant strategic discussion.

Sorry if this isn’t the most exciting answer, but it’s what usually works.

@AlexSmith
I agree with everything u/SneakersStrategies and u/ON24Mayday said. Also, don’t forget that having a smooth website user experience can really help. Imagine getting tons of clicks, but your website is slow to load or hard to use. The better your site works, the more likely people are to stay and make a purchase.

Try A/B testing different CTAs on your landing pages and see what works best. Creating a sense of urgency can also help drive action.

I’d also suggest retargeting visitors who left without buying. Just because someone didn’t buy right away doesn’t mean they aren’t interested. For example, if someone watched your demo or downloaded a resource, they might be closer to a purchase than you think.

If you’re selling to larger enterprises, lead generation is probably no longer your main focus.

You might want to try an affiliate or referral program, focus on brand building, use email nurturing, and get better at content distribution. If your budget is tight, promoting in niche email newsletters could help.

Refine your targeting, make the most of organic channels like SEO and content marketing, and optimize your funnel to convert better.

SEO can give you the lowest CAC. Depending on where your SaaS business is in its journey, you’ll want to plan your SEO strategy carefully. SEO pays off in the medium to long term, but once your site ranks for your target keywords, it can keep rewarding you for a long time.

Referral programs are worth trying. You could also attend industry conferences and gather leads from people already interested in what you offer.

How’s your conversion rate once customers reach you?

Often, there’s a lot of potential to improve this part of the funnel, which means more revenue for the same amount of ad spend.

a) Driving Traffic - If you’ve tried most marketing channels, it might be time to work on your messaging. The right messaging, targeting, and relevance often beat big spending.

b) Converting - Here, personalization can really help.

  • Make sure the user’s journey on your site matches what they were searching for.
  • Email marketing should align with their original intent and industry.
  • Your messaging should focus on features that matter most to the user.
  • If users are stuck in the app, use tools to detect where they need help.

AI can be really helpful for personalizing experiences and improving conversions.

DM me if you need more ideas.

SEO can definitely reduce your CAC. It’s a medium to long-term effort, but once you’re ranking for the right keywords, you’ll see a steady drop in your CAC. There are also some great SEO tools out there to speed up the process and help you generate content and keywords fast.

Good luck!