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What is customer acquisition? 

Customer acquisition refers to gaining new customers or clients for a business. It involves various marketing and sales strategies to attract individuals or organizations to purchase a product or service, thereby expanding the customer base.

How to calculate customer acquisition cost? 

Customer acquisition cost (CAC) can be calculated by dividing the total costs associated with acquiring customers (such as marketing, sales, and onboarding expenses) by the number of customers acquired within a specific period. The formula is:

CAC = (Total Marketing and Sales Costs) / (Number of Customers Acquired)

By accurately determining the CAC, businesses can assess the effectiveness of their marketing and sales efforts and make informed decisions about resource allocation and pricing strategies.

Three simple customer acquisition strategies for SaaS product marketers? 

Content Marketing and SEO

Create high-quality content that addresses the target audience's pain points and optimizes it for search engines. This can attract organic traffic and potential customers actively seeking solutions the SaaS product provides.

Referral Programs

Implement a referral program that incentivizes existing customers to refer new clients. This can be achieved through discounts, rewards, or premium features, leveraging the power of word-of-mouth marketing to acquire new customers at a relatively low cost.

Free Trials and Demos

Offer free trials or product demos to allow potential customers to experience the SaaS product firsthand. This hands-on approach can significantly influence decision-making and lead to higher conversion rates as users experience the product's value.

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