When it comes to SaaS-based businesses, the definition of growth mostly follows the divine trinity – acquisition, retention, and churn. While a “good” product can result in higher acquisition, retention and churn depend on the user experience after they are onboarded. It also depends on a lot of other factors, including continued product value, experience, service, and cost. However, the Customer Acquisition Cost, or CAC, depends on quite a few things for a standard product. It includes the value proposition, product pricing, marketing strategy, user awareness, product reputation, and so on. Whatever the reason, the result is always the same – higher cost in acquiring customers.

The CAC for SaaS products has increased quite a bit in the last few years. The SaaS space has become quite competitive and marketing is now expensive. Building a SaaS product does not cost much, but acquiring customers and achieving consistent growth is more challenging than ever. Yet, all of these can change with a product-led growth strategy focusing on user intent and motivations.

For example, several companies used the product as the hero of their marketing campaigns, Slack and Dropbox being the prime examples. Slack took a DevOps approach by marketing to the end-users in a big enterprise and made the product at the forefront of growth. But can other SaaS-based products adopt the same route? Let’s have a look.

Convincing the audience: unraveling the product-led growth strategy

The product-led growth strategy is not a one-dimensional plan. It requires the involvement of multiple teams in delivering the right user experience for potential customers. The product team builds the product or rolls out regular updates, the sales team takes care of the product demos, and the marketing team needs to deliver the right message across channels to get the customers aware of the product features. 

Therefore, brands willing to roll out product-led growth strategies need to don multiple hats of product, sales, and marketing. Still, getting the teams together can be a bottleneck. The different teams constitute the internal audience for the product, and there can be some amount of pushback. Having a product-led growth strategy changes it all.

How? 

  • Let the product team develop and deploy the product. In the process, they offer a free trial for a limited time to its customer. 
  • Similarly, let the marketers modify the existing landing pages instead of relying solely on the freemium model to offer the product. 
  • The sales team takes care of the subscribers from the gated content to the free trial stage

Creating a gated pathway can be a valuable way of offering what the customers want and aligning the internal teams.

Delivering the right value: Context and communication

The short period of free product usage can help businesses collect insights into the user requirements. It can help develop real-time use cases regarding the user experience and expectations.

Marketers using a product-led growth strategy can use the user information to create multiple campaigns. Now they can understand

  • Customer’s pain points and how a product can solve
  • Any friction in adopting the product
  • Purchase intent and motivation to convert – functional, emotional, or social

As the product becomes the key driver of conversion here, understanding the customer intent becomes convenient. Further, a product-led growth strategy helps realize these outcomes and connects you with the customer’s intent.

Wrap Up

If a customer regularly uses a SaaS product, it lets businesses understand their motivation and intent. Marketers can leverage this information to make the marketing communication more contextual and relevant.

Further, product usage data highlights the customer journey in a product-led growth landscape. Combining the customer intent, motivation, and expectations, marketers can target relevant users across the journey stages. Consequently, this leads to a faster conversion cycle and less expenditure on marketing campaigns. The final outcome of all this is a lower Customer Acquisition Cost.

Yet, the challenge for marketers lies in connecting this motivation and intent. Glance helps in making this connection more convenient. It helps marketers develop their product-led growth strategy as the growth engine for its users with contextual messages based on user intentions and motivations.

PS: You can do a free trial of Glance here.

Comments to: Can SaaS Use Product-led Growth to Reduce CAC?

Your email address will not be published. Required fields are marked *

Attach images - Only PNG, JPG, JPEG and GIF are supported.

Login

Welcome to Typer

Brief and amiable onboarding is the first thing a new user sees in the theme.
Join Typer
Registration is closed.