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April 15, 2022

Are you looking for a SaaS acquisition strategy that works? Look no further! In this article, we’ll show you how to create a SaaS acquisition strategy that will help you close more deals and grow your business. 

Defining Acquisition

Before we get into the techniques let’s clarify: Customer acquisition is not the same as generating new customers.

You’ll see that acquisition is a way for companies to track their SaaS growth. However, it ends before they use your product.

The acquisition process is the process of bringing in new visitors to your site and getting those visitors to sign up.

However, activation is the next step in enticing people to use your product and become a user.

However, customer acquisition is the most important part of the SaaS expansion process.

First, you wouldn’t have anyone to convert into users and keep them as paying customers without new signups.

Pierre Lechelle explains in this article:

To ensure customers go through the funnel stages (to revenue), you need to make sure there are enough customers at the top. Without these customers, there won’t be any customers in the end.

This is illustrated by the graph above. To generate paying users, you will need large numbers of visitors at the beginning of the funnel to achieve the average conversion rate.

1. Verify the fit of your product/market

We are in agreement:
Even if you don’t have a product, it is important to start acquiring users as soon as possible.

However, you should do it for reasons other than growing a business.

At this stage, you need to acquire the first users to validate your idea and determine if you are targeting the right customer pain points.

Only after you have validated your idea and found the product/market match, can you shift your focus to growing a company.

I assume you are familiar with the concept of product/market fit [PMF]; if not, Marc Andreessen has an explanation here. It is a situation where a product can satisfy a market and you are “in a good marketplace.”

Finding PMF is difficult because you will need to pivot often to find it.

It is quite simple to pivot a value proposition, if you are using technical terms. However, it is not easy to adapt the entire customer acquisition strategy.

Ensure that you have the PMF before you launch any strategy to sign up or attract new customers.

2. Develop customer personas

It may seem silly to create customer personas, give them names, find a picture that represents them, or list their interests.

I mean, who would want to look at Google Images to find someone who is exactly like your “SaaS Sally?” persona?

Without buyer personas, however, it is difficult to identify your potential users and how you could reach them online.

You can also find the best ways to attract them.

How can you create lead magnets that will bring new users to your email list without understanding their pain points?

Or, discover the channels that drive the most targeted traffic.

It is easy to attract the right kind of web visitors by having buyer personas. This makes the customer acquisition process much easier.

3. Identify the most aligned traffic sources

This strategy is not easy to master. The benefits of this process are enormous.
Because you see:

Not all traffic channels will convert visitors.

Marketing channels that you may consider a sure-fire failure are often actually quite common.

Dan Norris conducted an experiment to evaluate his traffic sources a few years back. It turned out that sources he relied on such as Adwords and email did not produce any results.

Strategies like guest posting, active participation on social media and Twitter auto follower strategy result in actual conversions.

Your best visitors may come from different channels. SEO might work for you. Perhaps you could advertise your SaaS product via Facebook to drive the most signups.

Without testing, it’s difficult to tell.

You need to identify your top channels to get new customers and acquire them at a low cost.

4. Create different customer acquisition funnels

Here’s the deal: Some of your visitors may sign up on the homepage.

Many others won’t even be able to see it.

They could also become users. They will need to go through another funnel to sign up.

SaaS founders tend to focus on a simple acquisition funnel that looks more or less like the following (via LaunchBit).

They assume that website visitors will see the Sign-Up call-to-action and act on it, signing up for a trial or a free version. Then, with onboarding and retention, customers can be converted into paying customers.

Many do. But, not all of your visitors are ready to create an account or start using your product.

The Saas market is saturated with new Saas products these days. Nearly all Saas companies offer a free trial or a complimentary package. This means that free software is no longer an exclusive factor that differentiates your product from others. Professionals don’t jump at the chance to try every Saas tool for free.

To acquire them, you will need to find another way of convincing them to sign up.

You could target them first with your lead generation strategies and nurture them. Finally, you could entice them to sign up when they are ready.

This is how a funnel would look to achieve this goal:

The best part? You can target and acquire different types traffic by using both funnels simultaneously, which will greatly accelerate your SaaS growth.

5. Invest in Building an Audience

Here’s something that most agree upon—Nothing beats being surrounded by people.

Take a look at SaaS firms like AdEspresso, Kissmetrics and Drift. They have engaged customers.

Although many of these people don’t actually use the app, they help to promote it.

How? You can share their content by sharing it, telling others about them, commenting on their blog posts and attending their webinars and other events. You can go on and on.

Start building your audience as soon as you can. Drift’s content strategy was launched before they had a product.

However, you must go beyond simply posting content to your blog to Build an audience.

  •  
  • You can also repost your content on other channels like Medium and Linkedin. This strategy is used by many SaaS companies to simultaneously start conversations with multiple audiences without the need to produce original content.
  • Turn your content into lead magnets or content upgrades, and create a lead creation engine that will fuel your secondary funnel (the one mentioned in the previous point).
  • Target social media channels you would discount in B2B such as Pinterest. Dustin Stout, Warfare Plugins, shares his experiences with less-common social networks for B2B (and why they’ve become his top traffic sources).

SaaS customer acquisition: Getting to the basics

SaaS companies must first build a relationship with customers before they sign up for the product.

Other business models, such as eCommerce, can be focused on getting customers to buy and then building a deeper relationship.

the SaaS sales cycle is lengthy and tedious. According to research, an average SaaS sale cycle takes around 84 days. The long sales cycle is due to Factors such as high product costs, privacy issues, complicated features and a wide range of product options.

Let’s take a look at the industry benchmark for SaaS customer acquisition cost. here’s what the data tells me:

  • Ideal LTV/CAC Ratio SaaS companies that are growing should aim for a ratio between 3 and 4. This is because higher sales translate into better marketing ROI. However, if your ratio exceeds 3:0, you might end up under-spending or limiting growth.
  • FirstPage Sage’s study shows that the average customer acquisition cost is between $500 and $2000.

To accurately assess the ROI of your marketing campaign’s marketing campaigns, you should track your customer acquisition cost (CAC), and the lifetime value of your customer (LTV).

This data can be very useful in determining which channels to invest in. It can also help you analyze your marketing department’s core strengths and weaknesses by comparing your CAC to industry benchmarks.

Now that you understand why customer acquisition costs should be the main focus of your SaaS marketing strategy let’s talk about how to create a killer customer acquisition strategy.

How to Build a purpose-driven SaaS customer acquisition strategy

It’s helpful to know what other SaaS Marketers think of customer acquisition strategy before you start creating your SaaS customer acquisition strategies.

Tatev hackobian, Marketing Expert at Krisp defines customer acquisition strategy as a viable approach to understanding new customers’ preferences and behavior. This includes utilizing all marketing channels to increase brand awareness and reach them in order to establish a strong connection.

Now that you understand what SaaS marketers mean by customer acquisition strategy, let us look at what it takes for a great SaaS customer acquisition plan.

1. Optimize your website for search engines

Your website is the first impression your prospects and leads will make about your brand. It should be impressive.

You need a hyper-personalized user experience that adapts to users’ time zones and highlights strategically-placed CTAs.

Having your homepage act as a brochure/demo for your product.can make it easy to create an informative, user-friendly and engaging browsing experience.

2. Keep your customer at the center of everything you do

Customers are the best way to win the market. It’s not about demonstrating benefits, but about showing the value your customers will get from using your product.

There are many ways to achieve this. Start by improving customer experience and integrating live chat software onto your website.

Prospects and customers can instantly contact an agent in real time and have their questions answered within seconds. many customer support software allow integration of a knowledge base within the chat platform. This allows customers to quickly (and effectively!) get answers to repetitive questions.

These are the two questions to ask at every stage of the customer’s lifecycle:

  • How can we help users achieve their goals?
  • How can we address their problems and gain user trust in our offering?

Live chat is a powerful tool that can be used to improve your customer experience. It allows you to provide a powerful CX marked by speed, accuracy and greater user satisfaction.

3. Showcase success stories

This is one of the most proven strategies that works. Broadly research shows that posting positive reviews can increase customer spending by 31%.

You can show customer success stories in many ways, including:

  • As a way to show social proof, you can insert the logos of established companies with which you have partnered.
  • Create a section on case studies that clearly explains your product.solution’s impact on customers. Also, display updated testimonials from clients in the form quotes/videos.

Your website/app could have social proof that helps prospects convert. Your website can be used to show (not just tell) users how your brand is making life easier.

4. Optimize the pricing page

SaaS companies often make the biggest mistake of not having a clear picture of the pricing plans.

create a well-optimized pricing page to save your customer’s time.

  • HubSpot pricing page focuses on a strategically-crafted value metric (think: the value that the customer pays for, which could be based on per user, per GB, etc. )
  • Insightly’s pricing page targets small customers by using “per customer” as its primary value metric.

This strategy is useful when you want your power users who are currently on free plans to make a purchase decision based on the value they are gaining from the product.

  • If you have too many pricing plans to show, use the UserVoice example. It provides a generalized pricing page, differentiates pricing between different tiers and then gives the user the option to explore more by clicking the “view full feature listing” button.
  • You can also experiment with dynamic pricing pages, as Sender does on its website.

Optimizing your pricing page will allow your brand to communicate your pricing details honestly, which is a primary interest-point of most customers, and prevent unpleasant surprises later by way of add-ons, etc.

To accelerate your sales cycle, you can include discount-related information in the annual subscription plans.

5. Create valuable content

Promoting content should only make up a small portion of your content marketing strategy. SaaS companies should focus on driving product-led content as a rule.

Ahrefs is an example of an SEO product that can be used as inspiration.

  • The brand’s Blog section contains closely related blog posts that are educational and value-driven.

The brand also highlights product-related videos. This makes the content as varied and interesting to read as possible.

Do your research before you start curating content. Find out if there is a search volume that your product.can address. This is known as the Business Potential Score.

If you answered yes, then you can stop driving content based on top, middle, or bottom funnels. Instead, focus on product-centric content that shows real business potential. This should include relevant keywords and topics and subtly pitch the product in question to your customer as an irreplaceable solution for their pain point.

Ahrefs subtly and effectively helps the audience understand how to use their tools for SEO. The beauty of the content is that it is as non-promotional as possible, indirect, and product-centric as possible. You can also use a variety of value-driven content categories that are clearly defined (think video, case studies, general SEO blogs etc.). It is well worth the effort.

Before we move on to the last section of this blog, let us hear from a marketer about what a marketer should keep in mind when drafting customer acquisition strategies for SAAS businesses.

Alex Souchoroukof is a marketing copywriter at Moosend. He explains that to be a marketer you must first get to understand the people buying from your company. It is important to get to know your customers, their motivations, and their challenges. Only then can you develop an acquisition plan.

My best advice is to segment your target clients and creating individual conversion funnels for each. This involves extensive research, understanding your customers, creating customer profiles, and then targeting each group differently.

Educational information can be provided in a variety of formats (interactive content and emails, blogs posts, videos, etc.) to help SaaS leads provide a more personalized experience and convert more customers. You can provide information for leads at every stage of your funnel.

A broad consumer acquisition plan is not possible. Instead, you will need to be more specific. Once you know your target audience, it’s much easier to tailor your strategy to each consumer category.

How to avoid common pitfalls when implementing your SaaS acquisition strategy

1. You need to keep track of your metrics. If you don’t track the effectiveness of your customer acquisition strategy, then you won’t know what’s working. To make adjustments and pivot your strategy, make a list of the top 3 or 5 metrics you should be monitoring.

2. Instead of focusing on the product promotion, focus on the solutions. Nothing frustrates customers more than brands that continue to trumpet their accomplishments. customers want to see tangible benefits they can get from your product. your CAC strategy should be driven.

  • Engaging stories about your team and the core values of your brand will help you build a strong connection with your customers
  • Customer success stories are especially impressive when leads contact you or sign up for a free trial in order to gain their trust.
  • Your content should clearly highlight how your offer can help the prospect’s greatest pain points and empower them towards their goals.

3. Let some customers churn. If you notice that some customers are churning despite all your efforts, then let them churn. However, gather feedback from customers and ask them why they didn’t like the offer. Then analyze their data.

These insights can be used to improve customer experience. you should gather real-time feedback from both happy and unhappy customers.

Conclusion

Acquiring new customers is one of the most important factors in determining the growth of a SaaS business. Implementing a good SaaS acquisition strategy will help you to scale your business effectively! 

 

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