{"id":3129,"date":"2020-08-11T19:30:56","date_gmt":"2020-08-11T19:30:56","guid":{"rendered":"https:\/\/wiki.thomasandsofia.com\/?p=3129"},"modified":"2024-10-29T10:35:48","modified_gmt":"2024-10-29T10:35:48","slug":"ecc-the-saas-secret-no-one-wants-to-talk-about","status":"publish","type":"post","link":"https:\/\/wiki.thomasandsofia.com\/?p=3129","title":{"rendered":"ECC &#8211; S2: The SaaS Secret No One Wants to Talk About"},"content":{"rendered":"<p><a href=\"\/ecc-introduction\/\">&lt; Introduction<\/a> | <a href=\"\/essential-customer-success\/\">Home<\/a> | <a href=\"\/ecc-the-customer-success-market\/\">The Customer Success Market &gt;<\/a><\/p>\n<h1>6. The SaaS Secret No One Wants to Talk About<\/h1>\n<p><a href=\"https:\/\/www.udemy.com\/course\/essential-customer-success\/learn\/lecture\/20766692#content\" target=\"_blank\" rel=\"noopener\">https:\/\/www.udemy.com\/course\/essential-customer-success\/learn\/lecture\/20766692#content<\/a><\/p>\n<p>To explain how what I do as a CSM will impact the finantial impact on my company<\/p>\n<h2>Customer Acquisition Costs<\/h2>\n<ul>\n<li>Invest in customers before you get customers\n<ul>\n<li>Marketing and Sales dollars must be spend<\/li>\n<li>Some will become customers, some will not<\/li>\n<li>It may take a long time before new customers sign contracts<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Costs of Acquiring a new Customer<\/h2>\n<ul>\n<li>CAC = ( CostOfSales + CostOfMarketing ) \/ CustomerAcquired<\/li>\n<\/ul>\n<p><u>Cost of Sales + Cost of Marketing<\/u><br \/>\nNumber of Customers Acquired<\/p>\n<h3>Example:<\/h3>\n<ul>\n<li>$1.3M spent on Marketing<\/li>\n<li>$1.2M Sales (5 meetings avg. with 3 or more stakeholders per prospect)<\/li>\n<li>100 total new customers growth<\/li>\n<li>( 1.2M + 1.3M ) \/ 100 = $25,000 per new customer<\/li>\n<\/ul>\n<h4>How expressed:<\/h4>\n<ul>\n<li>Ratio ( X:Y)<\/li>\n<li>Percent (%)<\/li>\n<li>Cost to acquire a single dollar ($) in revenue.\n<ul>\n<li>Example\n<ul>\n<li>To acquire 1 customer cost $25,000<\/li>\n<li>Average Deal = $25,000<\/li>\n<li>It costs $1 for each $1 in new revenue.<\/li>\n<li>You did not grow.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Typical Acquisition Costs<\/h2>\n<ul>\n<li>CAC = $1.14.\n<ul>\n<li><span style=\"color: #ff0000;\"><strong>It costs More to gain a customer than you make from the customer!<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&lt; Introduction | Home | The Customer Success Market &gt; 6. The SaaS Secret No One Wants to Talk About https:\/\/www.udemy.com\/course\/essential-customer-success\/learn\/lecture\/20766692#content To explain how what I do as a CSM will impact the finantial impact on my company Customer Acquisition Costs Invest in customers before you get customers Marketing and Sales dollars must be spend ..<\/p>\n<div class=\"clear-fix\"><\/div>\n<p><a href=\"https:\/\/wiki.thomasandsofia.com\/?p=3129\" title=\"read more...\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-3129","post","type-post","status-publish","format-standard","hentry","category-customer-success"],"_links":{"self":[{"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/posts\/3129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3129"}],"version-history":[{"count":5,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/posts\/3129\/revisions"}],"predecessor-version":[{"id":4031,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=\/wp\/v2\/posts\/3129\/revisions\/4031"}],"wp:attachment":[{"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiki.thomasandsofia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}