Keeping customer acquisition cost (CAC) low is one of the most important tasks for SaaS providers. The document provides tips to help lower CAC, such as identifying ideal customer personas to target, using marketing automation software, reducing reliance on paid ads by investing in owned media, and cutting customer churn to retain existing customers. Following these tips can help SaaS companies improve growth and profitability by more efficiently acquiring new customers.

1. CUSTOMER ACQUISITION COST: KEEP IT AS LOW AS
POSSIBLE
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2. Are you a SaaS development service provider? If so, then what is the most challenging task of
your software as a service distribution model? Is it to revive your brain-dead customer base
or to manage the stock market? Well, there's something worse than these which most of the
SaaS providers aren't stressed about, and it's to keep the ‘Customer Acquisition Cost (CAC)' as
low as possible.
According to Steve Olenski's article in the Forbes, "Customer acquisition is an expensive
process, however, with proper tips, you can lower your CAC." If your CAC turns out to be
higher than expected, then your business is in a serious need of salvage. Hire SaaS experts
from some Top SaaS Development Company to keep your business revenue on the right
track.

4. Incorporate the following tips in your SaaS distribution model to reduce the customer acquisition cost:
1. Identify & Target Ideal Patrons
Lots of SaaS companies and Software Development Company waste millions in enticing the ideal
personas of their business. As a result, their businesses sink, and their competitors gain the benefit. To
keep your CAC minimal firstly identify who your target customer is, for example, if you sell SaaS for
HRs, then your ideal patrons will be in:
Large organization- The CIO
Medium scale organization- The Head HR
Start-up- The CEO
Once you have a list of your prospects, then it's a quick litmus test for you to execute your marketing
campaigns.

6. 2. Use Automation
Marketing automation software is a boon to SaaS Development Services companies. It can
leverage the following benefits:
•Increase the rate of conversion of leads into sales.
•Improve the prospect targeting through emails.
•Appropriately align your marketing and sales teams.
•Improve your measuring and reporting
•Experts suggest that without marketing software SaaS companies juggle growth because they
waste their resources in nurturing unnecessary leads.

8. 3. Reduce Dependence on Paid Ads
The returns of paid advertising are linear. Once your sales funnel is optimized, and your marketing
strategy is reliant on paid ads, then you cannot make big reductions in your CAC. To drive down
your CAC, start investing in owned media which consists of your info graphics, magazines, blog, e-
guides/whitepapers, research reports, content, and website.
4. Cut down Customer Churn
Undoubtedly, the cost of grabbing new customers is always higher than the cost of up selling an
existing one. When your business lacks keeping a hold on existing customers, then the profit costs
do not stay at your advantage. Use cross-marketing and up selling opportunities to retain existing
customers and build a trust base for new customers.
A recent study conducted by Entrepreneur India proves that on an average, marketers were able to
retarget their potential patrons at the cost of less than a $

9. Read: - THE PREDICTION OF ‘INTERNET OF THINGS’
Read: - TOP ANDROID APP DEVELOPMENT TRENDS TO RULE IN 2018
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