What to budget for digital marketing as a SaaS company
A framework for sizing a SaaS marketing budget around CAC payback period and the balance between acquisition and retention spend.
4 min read
A marketing agency without SaaS experience can optimise brilliantly for sign-ups while having no visibility into whether those sign-ups activate, retain or ever become paying, profitable customers. The right questions surface whether an agency thinks in these terms already.
An agency that asks about your activation metric, your churn rate and your sales model (self-serve versus sales-assisted) before proposing tactics is treating your business as a SaaS business, not a generic lead-gen client.
The right SaaS agency will ask about your activation rate before they pitch you a campaign idea.
Monthly reporting connecting acquisition channel to activation rate and, where the sales cycle allows, to eventual paid conversion — not just top-of-funnel metrics presented in isolation.
Ask an agency how they would measure success beyond sign-ups — an agency that stops at sign-up volume does not understand SaaS economics.
Written by Fibvo — Bengaluru and Erode, India — working with clients in other time zones. Questions, or think we have it wrong? Tell us.
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A framework for sizing a SaaS marketing budget around CAC payback period and the balance between acquisition and retention spend.
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