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.
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