We sometimes have way too much attention on acquiring new clients and we sometimes just gloss over the retention part. Why is that? Maybe it is more fun to come up with ways to reach out to new clients. What would happen in your retention rate doubled? They came back and came back and came back! Cha-ching! Cha-ching! Cha-ching!
We have an expert that specifically could work on doing more to retain his clients so they use him again. If he spend more attention on getting the clients the necessary reports and making sure he is hitting deadlines, the customers would stay and not go to the next expert. This was a research compilation of the three steps, Acquisition, Conversion and Retention.
1. Acquisition
SaaS products are usually researched and bought online, and publishers need to understand the mechanisms that turn their prospects into clients. The website is the hub of the SaaS marketing strategy, and it must be a finely tuned, relentlessly tested acquisition engine, leading the visitor from idle curiosity through to whole-hearted commitment. Which offers or content deliver the most efficient path to conversion? How best to nurture prospects through to trial? The answers lie in testing, iteration and the kind of insight an experienced SaaS marketing partner provides.
2. Conversion
However brilliant a visionary the SaaS product, for a business to be viable SaaS publishers need to understand the true cost of a newly acquired lead (cost per lead: CPL) and ultimately, the cost of the newly acquired customer (cost per acquired customer: CAC). Given the highly trackable sales funnel, SaaS publishers have a golden opportunity to draw up sophisticated attribution models that answer fundamental questions about the precise cost of making a sale. Correctly built campaigns that deliver on all such KPIs are a science, but one that can be mastered.
3. Retention
Retention is the essential stage that turns all that acquisition and conversion work into profit. Gartner research suggests that 80% of future revenue for a SaaS publisher will come from around 20% of current customers. Just a small increase in retention can have an enormous effect on profitability.
So retention brings its own set of KPIs: what is the average lifetime value (LTV) of a customer? What is the average churn rate? How do we ensure that we are correctly calculating the LTV:CAC ratio to ensure we are setting the right CAC targets? Once all these metrics are established, publishers can be clear on exactly what they can profitably afford to pay for a customer, knowing the true value of that customer over time.
https://www.tugagency.com/blog/2019/10/10/acquisition-conversion-and-retention-get-your-kpis-right-and-the-sales-will-take-care-of-themselves-part-1-2
