We’re a lower cost product so we’re all about signing customers up at scale. It’s not an enterprise SaaS model. How can we scale without sacrificing our business model?
You are not in this game to capture market share as quickly as possible for a sales exit. You built a product with a very easy-to-understand value proposition and frictionless join process, and you plan to keep it that way. Now how can you get to $5M… $10M in revenue?
Low cost to test subscription saas like yours has a much easier time basing ad dollars and content marketing spends on arbitrage. You know your CAC (customer acquisition costs) per channel, you know your LTV (lifetime value per customer), and you know your retention rate… From then on it’s just about which channels’ CAC’s (remember to add attrition rate x CAC) are close or below your LTV.
Two questions I would ask are:
What are you the absolute best in the industry at?
Who specifically should care (what segment does this competitive advantage benefit the most)?
A caveat question to those Q’s is – what does your team do better in the way of promotions / marketing / PR than your competitors? Do you have the best copywriters, the best designers, or maybe the best sales team?
What’s most important to remember is; you can optimize everything – not just the in-house campaigns, but your outsourced agency campaigns as well. Sometimes the lowest hanging fruit is in what was already written off as a failed strategy. I’ve seen companies stop entire ad campaigns thinking they were a waste without ever considering alternative content or landing page design/copy. And believing your agency starts off with their best effort is a fallacy. Your agency knows their contract with you is dependent upon them increasing their value (i.e. your new customers via their campaigns) each month. Your goal is to call bullshit on their every move in the beginning so they know you are watching and expecting at all times.
I will hire the agency I know my competitors use and have them launch FB/IG/media ads/buys under my company’s accounts (don’t let them use their own). All of these campaigns – the targeting, creatives, copy etc… will then sit in your account long after you stop their contract. This can give you tremendous insight into what’s working for their competitors without you having to waste time/money testing.
**Note, do not let agencies claim the creatives they design for your campaigns are not your property. Those are always your property since they used your money/logo. Take those, and have your internal team generate versions of them for future campaigns you run in-house.
Aside from internal campaigns, here is what I recommend doing:
- Pull out your reports and find out where your customers came from, and what you spent per channel in ‘16. Then come up with CAC and LTV per channel.
- Decide which channels you can/would spend $5K/mo+ on if you were able to show ROI based on ‘16 channel LTV #’s.
- Find a niche agency for each channel. Example – Nanigans is one of the few offering attribution tracking and campaign management of app install campaigns on Pinterest. They are the best at Pinterest.
- Determine your minimum timeframes you’d have to see X number of users perform Y-specific events (i.e. one live interview, or created 3 interview questionnaires – to qualify as “an engaged user”) in your app.
- Launch campaigns for those timeframes with each new agency.