SaaS Customer Acquisition Costs
The cluster focuses on debates about customer acquisition costs (CAC) in SaaS and subscription businesses, comparing them to customer lifetime value (LTV), retention rates, and overall profitability.
Activity Over Time
Top Contributors
Keywords
Sample Comments
thats the price of acquiring a customer. for my saas the cost to acquire a customer is X, X is multiple of montly fees. so only after couple of months im going to be on 0. The cost for me could be adwords, running a free plan, or something else.how is this different. I assume that they hope to convert some of those to regular customers.
There's something wrong when "customer acquisition" is your biggest expense....
Customer acquisition is expensive.
The real cost of acquisition would be much higher. Newsletter Subscriber != Customer
Because it doesn't take inyo account CAC, which might be higher than the profits made per customer.
If only user acquisition costs were that low...
Am I the only one who thinks 36% customer acquisition cost is not crazy?
How can you afford a high touch sign up process for a customer who is worth ~$144 a year?
Looks like they have a run rate of over $100M (25M in subscription revenue last quarter) -- seems like they spent $100M to get to $100M+ in run rate - typical saas model in early days
That is pretty normal on high scaling SaaS solutions. If you earn 100k a year on a solution, and you know they in average stay for 5 years, you might spend 150k to acquire them as it is still a good business.