We would all love it if customers grew on trees, but sadly, they don't. Savvy marketers must strap on their ammunition and go hunting for potential clients to add to their business. Acquiring new clients is a time-consuming venture, and if it's not done right it can end up costing big bucks.
In the SAAS sales model, success hinges on successful customer acquisition. Let's discuss 4 wrong paths that even smart marketers can take that will derail their customer acquisition plan.
First, don't fail to do the math. Sticking your head in the sand and chasing customers with no regard to the cost is a bad plan. Be sure to calculate your cost to acquire customers, and the lifetime value of a customer. The cost to acquire customers should never be greater than the lifetime value of a customer. If it is, you are literally paying money for that client to do business with you.
Once you know the cost to acquire customers, another mistake you can fall victim to is...
Being too optimistic. Believing in your product is a good thing. Believing it will sell itself is not. Don't put too much reliance on the product's ability to attract customers, no matter how big of a need it fills. If you are expecting big clients to flock to your door for your new exciting product, you may be waiting a long time. A better plan is to consult with an inbound marketing agency to get assistance with your SAAS sales model.
Focusing too little time on conversion rates. Spending time on improving conversion rates is time well spent. Whether developing a training video, or utilizing customer references, your bottom line will increase with the conversion rates.
Finally, don't just dip your toe in the water. Once you have done your homework and confirmed the customer acquisition cost is in line with the lifetime value of the customer, jump in with both feet to promote the product as quickly as possible. An inbound marketing agency can help in developing a full throttle plan that gains the most clients in the shortest amount of time.
Customer acquisition is a sticky business in the SAAS sales model, and there are many ways to deviate from the main goal. By avoiding these big mistakes, smart marketers can power past their competitors and gain a sizable market share. And that is definitely worth all the work on the front end.
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