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This has allowed the company to increase their investment into paid marketing, going from a $0 spend to a $40k spend per month, with a healthy CAC/LTV ratio > 3.
Michelle was approached by a fintech B2B SaaS company to scale their paid growth marketing efforts. Through a careful data-driven approach, Michelle experimented with multiple paid channels and identified the most promising channel based upon the Cost of Acquisition (CAC).
Up until now, the company had not experimented with paid channels, and weren't sure if they could make the costs work for their self-serve software product.
At the start, the CAC per new user sat in the 3 figure territory. However, through disciplined iterations and conversion rate optimization (creating personalized landing pages, sharpening copywriting, optimizing the keyword campaigns), the CAC has come down into the 2 figure range, which has resulted in extremely healthy margins given their customer’s lifetime value (LTV).
This has allowed the company to increase their investment into paid marketing, going from a $0 spend to a $40k spend per month, with a healthy CAC/LTV ratio > 3.
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