Software as a service (SaaS) companies often face the challenges of long sales cycles, high customer acquisition costs, high churn rates, and unproductive acquisition processes.

However, by creating a SaaS customer acquisition strategy, brands can stand out in an oversaturated industry, reduce CACs, and expand their customer base.

This guide examines the key elements of a SaaS customer acquisition strategy, the five steps to developing one, and the best strategies to implement. I have also compiled the must-have tools to streamline processes and the acquisition tactics every SaaS business should know.

TL;DR – SaaS Customer Acquisition Strategy

Here is an overview of the 5 steps to develop a successful SaaS customer acquisition strategy:

1. Detail your ideal customer persona
2. Craft a value proposition
3. Outline the core acquisition channels
4. Craft targeted messaging
5. Measure and adjust the strategy

We’ll focus on these steps later in the blog.

Ready to create or review your acquisition strategy?

I’m Nora Sudduth, a customer acquisition consultant with 20+ years of experience building SaaS acquisition strategies that continuously attract high-value prospects across different channels.

Partner with me to create targeted campaigns with the lowest CAC and leverage customer data to guide your acquisition efforts.

Let’s have a 20-minute call to discuss how we can collaborate to grow your customer base and improve your ROI.

What is a Customer Acquisition Funnel?

The acquisition funnel illustrates the customer journey toward purchasing a product or a service— from awareness to conversion (and advocacy).

The benefits of understanding the acquisition funnel include:

• Optimize marketing strategies to meet the needs and preferences of customers at each stage
• Identify areas where customers drop off to improve customer conversion and retention
• Streamline the acquisition process and increase efficiency

SaaS Customer Acquisition Process

SaaS brands must understand the acquisition process to develop targeted strategies for each stage and guide their prospects through conversion.

These are the five stages of the acquisition cycle, but they can vary depending on the business:

1. Awareness

SaaS businesses aim to capture their potential customers’ attention at this stage. 

A brand can use the following tactics to draw prospects and enable the initial interaction with a brand.

• Publish optimized blogs and create videos that address the pain points of the target audience
• Use social media to post tweets, video clips, and infographics
• Launch referral programs and incentivize existing customers to invite friends

2. Interest

The next stage is to generate interest for potential customers to consider buying from the brand.

Brands can achieve this with these tactics:

• Share success stories through testimonials and case studies
• Create how-to guides and host webinars to answer questions about the SaaS product’s value

Prospects with high interest levels are known as Marketing Qualified Leads (MQLs).

3. Consideration

The MQLs actively evaluate their options, comparing them to other SaaS brands, including their offerings and value proposition. 

The SaaS company should aim to educate and attract potential customers by positioning itself as a viable option.

• Create comparisons and detailed product information guides
• Provide reviews and testimonials
• Offer free trials and demos

4. Conversion

The prospect decides to become a paying customer. The focus for SaaS brands should be:

• Have clear call-to-action buttons and easy navigation
• Provide multiple payment options to optimize conversions
• Make the onboarding or purchase process seamless

5. Retention

Post-purchase, SaaS brands should aim to retain the acquired customers and turn them into advocates. They can do this through:

• Follow-up communication systems
• Building loyalty programs and asking satisfied customers to recommend them
• Encourage customers to share reviews and feedback

Key Components of a Customer Acquisition Strategy

The 5 key components of a strong acquisition strategy include:

• Target Audience: Understand the target audience clearly—what are their preferences, needs, pain points, and behaviors?
• Value Proposition: Clearly outline the unique value of the SaaS product or services and show the audience how the solution can address their pain points.
• Messaging: Develop the proper SaaS messaging framework to create content that attracts, nurtures, and engages the target audience, boosting conversion and loyalty.
• Effective Marketing Channels: Choose the proper channels to interact with the target audience and convert them into customers. Additionally, leverage the top-performing platforms to their fullest potential.
• Measurement and Analysis: Continuously measure the success of the acquisition efforts — what’s working and what’s not— and adjust the acquisition strategy.

How to Develop a SaaS Customer Acquisition Strategy

A successful customer acquisition plan helps a SaaS business replicate campaigns and create a healthy pipeline of customers.

Here’s the step-by-step process to develop one:

1. Detail Your Ideal Customer Persona

Conduct thorough user research to understand the target audience. Use surveys and market research to gain insights into their firmographics, psychographics, and demographics.

Besides, consider segmenting the audience into different customer personas to further tailor the marketing campaigns and messaging.

2. Craft a Value Proposition

The value proposition statement should address potential customers’ pain points, needs, and wants and highlight the unique selling benefits of the SaaS solution. 

A well-crafted value proposition is also essential for a cohesive brand messaging campaign.

3. Outline the Core Acquisition Channels

Analyze the competitors’ online presence to find the high-performing channels they use and look for channels they aren’t leveraging effectively.

Also, consider the channels that bring in good leads but aren’t being used effectively. Use these insights to launch tailored campaigns that work and drive new customers.

4. Craft Targeted Messaging

SaaS messaging should reflect how the solution addresses customers’ needs, questions, desires, and pain points at each funnel stage. 

Develop brand-specific messaging that aligns with each marketing channel and resonates with the target audience. Craft a compelling brand story that evokes emotion and aligns with the company’s values.

5. Measure and Adjust the Strategy

Analyze different customer acquisition analytics to test and improve the efficacy of the SaaS strategy. 

For example, monitor the CAC and find ways to reduce it, target the right prospects to increase the average CLV, and track churn to see where prospects are leaving the funnel.

Stop guessing how to create or refine your customer acquisition strategy.

Let’s connect to identify the highest-value customer profiles, select the channels that attract your target audience, and nurture your prospects to build a strong relationship.

Join me on a call to discuss developing a targeted and scalable acquisition plan.

Proven User Acquisition Strategies for SaaS

There are a variety of strategies that have proven to work for SaaS businesses. 

Let’s look at some of them:

1. Inbound Marketing

Inbound marketing involves creating valuable content to attract and engage prospects on different channels:

• Create informative blog posts and videos to establish the brand as a thought leader and generate organic website traffic.
• Optimize the website to rank higher on SERPs, making the brand more discoverable. 
• Nurture leads with targeted emails and guide them through the buyer journey.
• Engage the target audience on social media platforms like LinkedIn to build awareness.

2. Outbound Marketing

Outbound marketing focuses on actively reaching out to potential customers:

• Quickly expose the SaaS solution to a large audience using Google Ads and sponsored content.
• Attend events and tradeshows to meet potential customers.
• Encourage existing clients to refer the SaaS business to others.

3. Partnership and Collaboration

SaaS businesses can collaborate with complementary brands to expand their reach into new customer bases. 

Additionally, they can:

• Cross-promote its products to reach new audiences.
• Partner with affiliates with a substantial following to promote a SaaS product on social media.
• Encourage customers to create user-generated content to build credibility.

Essential Customer Acquisition Tactics 

Want some of the best strategies to attract and retain SaaS customers? Take a look at these:

• Offer Freemium Products: Offering free trials and demos is a brilliant way to introduce a SaaS product to potential customers. With these tactics, businesses can determine whether there’s demand for specific features, and customers can decide if they’re a good fit.
• Create Referral Programs: Referrals are a great way to generate organic leads. Offer discounts and cash rewards to encourage existing customers to recommend the SaaS solution to their friends and family.
• Product-led Marketing: Focuses on the product as the primary driver of acquiring (and retaining) customers.
• Account-based Marketing (ABM): A SaaS company can use a more targeted approach that combines inbound and outbound marketing. ABM identifies high-value accounts and tailors campaigns to engage the firm’s key decision-makers.

Top Customer Acquisition Tools for SaaS Businesses

From CRM to analytics, these two tools can help SaaS brands attract ideal prospects and convert them into customers:

1. Salesforce: Best Customer Relationship System (CRM)

Salesforce is a comprehensive CRM platform that automates processes, analyzes data, and creates personalized experiences.

Key Features

• Track customer interactions and monitor metrics like LTV
• Manage lead generation by capturing and tracking leads throughout multiple channels
• Automate email marketing campaigns and personalize messaging

Pricing: $25 per user per month

2. Google Analytics: Best Analytic Tool

Google Analytics, commonly called GA4, provides insights into SaaS customer acquisition efforts. 

Key Features

• Generate multi-channel acquisition reports and track where users come from
• Offer comprehensive audience segmentation
• By setting up conversion tracking, SaaS companies can identify successful campaigns. 

Pricing: Free

Frequently Asked Questions (FAQs) 

Below, we’ve answered the frequently asked questions about SaaS customer acquisition strategy:

How Do Customer Acquisition Models Impact SaaS Growth?

Customer acquisition models, including digital ads, content marketing, and referral marketing, are critical for SaaS growth because they:

• Bring in new customers, which directly generates recurring revenue for a SaaS company
• Attracts customers with a high LTV, boosting the long-term revenue
• Ensures profitability by managing a low CAC and achieving high profit margins

What Are the Best User Acquisition Channels for SaaS Startups?

Some of the most effective acquisition channels for SaaS startups include:

• Organic channels, including social media marketing, SEO, email marketing, and referral programs
• Paid channels, including social media ads and PPC ads
• Partnerships with influencers and collaborating with affiliates
• Traditional advertising channels like radio

Why is Customer Acquisition Analytics Critical for SaaS?

Customer acquisition analytics can help SaaS businesses:

1. Develop a data-driven approach and targeted campaigns based on past success
2. Create tailored improvements on SaaS product features to solve the actual pain points
3. Identify reasons that lead to churn and proactively address these issues
4. Get insights on how to convert satisfied customers into loyal brand advocates

How Does Customer Acquisition Management Differ in SaaS?

Here are the unique traits of SaaS customer acquisition management compared to traditional businesses:

• Emphasis on Retention Strategies: Unlike traditional businesses, which focus on immediate sales and ROI, SaaS emphasizes customer relationships, increasing a single customer’s lifetime value (LTV).
• Data-driven Approaches: SaaS firms must understand customer data and use it in decision-making, whether it is to optimize marketing efforts or innovate new features.

Conclusion

Implementing customer acquisition strategies can help SaaS brands attract leads and convert them into customers. They should also invest in the right tools, such as Salesforce and Google Analytics, to create a seamless, automated journey.

But there are more to boost your acquisition efforts.

I can help you tailor your marketing strategies and create personalized messaging carefully curated for each stage of the buyer’s journey — from the moment they discover your SaaS company to the point they purchase from you and beyond.

Let’s get on a discovery call and brainstorm how to acquire targeted leads and drive more conversions.