Tomasz Tunguz Blog · 2017-11-01 · 3137d

Rising SaaS Customer Acquisition Costs and the Strategic Shift to Channel Sales

SaaS companies face a secular increase in customer acquisition costs (CAC), with surveyed companies experiencing ~65% increases over five years due to competition and scale. GDPR regulations will further pressure traditional email-based acquisition. Channel sales emerges as the most efficient growth strategy, growing 62% faster than other sales models.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Channel Sales Growth Premium

62%

higher relative growth rate

vs. inside, field, internet, and hybrid sales models

Customer Acquisition Cost Growth

65%

aggregate increase

SaaS companies over 5-year period

Survey Sample Size

800companies

sample count

ProfitWell CAC study