Dare to Compare: 2023 SaaS Marketing Benchmarks
How do your cost per lead and customer acquisition costs compare against others?
With the ongoing focus on driving profitable growth, one of the best ways to start is to optimize your customer acquisition funnel. A/B testing to find the winners and looking at historical results is critical, but it is also important to find relevant benchmarks to identify potential opportunities for improvement. Especially in this market, as data and privacy protection policies may have a dramatic impact on our ability to track email click-thru rates and other data. Here are some great benchmark resources:
1. Customer Acquisition Costs by Channel
& Industry from First Page Sage (creator of the chart above).
2. Cost Per Lead
by Channel and Marketing by Campaign Type from sopro
3. Google Ad Conversion Rates
from WordStream
4. Email Marketing Benchmarks
by Industry from Campaign Monitor
5. B2B Marketing Budget Allocation
from LinkedIn
6. Sales and marketing budget allocation
for Bootstrapped and equity-backed companies from SaaS Capital.
Here are some thoughts to consider as you look at your comps. You can't look at your Cost Per Lead, Qualified Opportunity in a vacuum. You also need to look at the revenue associated with the spend, analyzing payback times and the ratio of Customer Acquisition Cost (CAC) to Customer Lifetime Value. Also, in the measurement of CAC, in most cases, especially in business-to-business, it takes multiple touch points with multiple contacts to bring a customer to the finish line, so you should also look at how changing your marketing attribution model changes your ROI.
Here are some thoughts to consider as you look at your comps. You can't look at your Cost Per Lead, Qualified Opportunity in a vacuum. You also need to look at the revenue associated with the spend, analyzing payback times and the ratio of Customer Acquisition Cost (CAC) to Customer Lifetime Value. Also, in the measurement of CAC, in most cases, especially in business-to-business, it takes multiple touch points with multiple contacts to bring a customer to the finish line, so you should also look at how changing your marketing attribution model changes your ROI.
You can find SaaS Sales Metrics in this post, and follow us on Linkedin to get notified when we publish even more metrics on customer success, product-led growth, and more!.
Full Transcript: 0:00 Alright, I'm a huge fan of Apollo, some great information, but sometimes it's not explained very well. And one of the areas that I noticed is under insights for company employee trends, like where are they hiring people. 0:15 So I created this video because I tried to find the answer, I could not find it. I'm pretty sure if I ping somebody there they would have gotten back to me, but you know I just want to figure out some of the stuff myself and not have to talk to somebody. 0:31 So, employee trends is pretty powerful. If you are selling products or services into different departments, you can see what's happening to their headcount. 0:41 And one of the things you can do under the departments is if you don't see one here, in the broad categories, you can actually pick some of the smaller categories here and add that in. 0:54 So, I'm going to look at support. And then what it will do is it will give you the total uhm new heads for the category added and then the year over year growth rate. 1:09 Now, what's really confusing is let's go to one of the bar charts. Sales, 425 out of 970 total new head count. 1:16 You know, roughly almost half. That kind of makes sense in the bar chart, but what it is is 0% in parentheses. 1:23 Well, that's actually the year over year growth rate. So pretty simple. It's not really explained anywhere. I had to figure it out myself and I hope this helps you.
Your website speed can have a significant impact on your ability to both attract and engage your audience. Google provides several free tools like PageSpeed Insights to measure performance. So what does a bad score look like and what should you do about it?
Learn essential strategies for reducing your Saas costs and getting the most out of your software investments.
ARR per FTE is quickly rising as one of the most important metrics operators, investors, and owners are looking at to measure the performance of their SaaS based business. See the current benchmarks, how to calculate, and how to improve.
In 2023, Win Rates Dropped 15%, Sales Cycles were 32% Longer, and 25% More Stakeholders Were Involved In The Process. Get SaaS Sales metrics win rates by ACV, ARR, days to close, the ratio of AE to SDR, AE Achievement of Quota, BDR and AE compensation. Dare to compare.