Let CAC guide SaaS products' pricing

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 23, 2021, 2:59 AM UTC

Companies can calculate customer acquisition costs (CAC) for SaaS products/services by dividing the total cost of sales and marketing by the total number of customers acquired.

To build a successful SaaS product, businesses must commit time, money, and effort, while calculating customer acquisition costs (CAC). Brands can assess consumers’ lifetime value and CAC ratio to optimise their sales and marketing activities, as well as use CAC to price SaaS products and find ROI evaluation periods.

Select a defined evaluation period and use it as a benchmark for future CAC calculations. Compute the amount spent on advertising strategies, content creation and publication costs, staff salary, and more, against new consumers acquired.

Creating consumer personas using data and improving marketing and sales funnel can help brands optimise CAC. Ensure customers are being engaged via feedback and referral programmes, and price SaaS products correctly using conversion rate optimisation.

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