kellblog.com · 2020-06-07
· 2188d
Congratulations, You've Created a Category. Now What?
After successfully creating a new market category, companies face critical strategic decisions about how to defend and extend their position against inevitable competition. The author outlines three primary leadership strategies—grow aggressively, market category leadership, and evolve the category vision—while providing tactical options including customer intimacy, lateral expansion into adjacent categories, and vertical expansion into applications, with segmentation as a fallback for resource-constrained companies.
Metrics in this report
Customer Acquisition Cost (CAC) Spend Ratio
1.7dollars spent per new ARR dollar
top-quartile
SaaS companies during category growth phase (KeyBanc 2019 SaaS survey, mid 50-percentile range $0.77–$1.71)
Customer Acquisition Cost (CAC) Spend Ratio
1.14dollars spent per new ARR dollar
median
SaaS companies overall (KeyBanc 2019 SaaS survey)