Solved: Finding Customer Acquisition Channels for a Navigation SaaS

Hi there,

Thanks for getting in touch. I'm happy to give you some initial thoughts and guidance on your B2C SaaS navigation tool launch. It's not unusual to see slow growth at the start, especially with limited resources. I've worked with a few software startups in a similar boat, so hopefully some of these insights will be helpful.

We'll need to look at your current customer acquisition cost (CAC)...

First off, let's talk about Customer Acquisition Cost (CAC). A lot of founders get fixated on things like website traffic or social media followers, but at the end of the day, it all comes down to how much you're spending to acquire each paying customer. I'd say, if your CAC is significantly higher than what a customer spends over their lifetime with your app, you've got a problem.

We had a client who launched a B2C fitness app last year, and their initial CAC was through the roof. They were targeting everyone in the UK who was remotely interested in health and fitness, which was far too broad. Once we narrowed it down to specific demographics and interests (e.g., people who regularly attend hiking groups, use specific hiking apps, or buy outdoor gear), their CAC dropped dramatically. It turns out that a significant amount of their initial spending was effectively wasted on the wrong people.

I'd really suggest to take a close look at your CAC. There's loads of ways to track it, but it's just the total marketing spend divided by the number of customers acquired over the same period of time. If you're spending money on both organic and paid methods, you'll need to keep track of both for a comprehensive cost. You could use a simple spreadsheet or dedicated analytics tools.

What you should be tracking here is how much you're spending and what channels bring in customers at the lowest price. This can help you see if Google Ads, Meta Ads, or whatever else you're trying is performing well.

I'd say you probably aren't reaching the right people...

You mentioned you're having trouble reaching the right people. I'd suggest you should explore lookalike audiences on social media platforms like Facebook and Google. If you have a list of existing users, even a small one, you can upload it to these platforms. The platform will then analyse the demographics, interests, and behaviours of your current users and find other people who are similar.

One campaign we ran for a navigation and maps app recently really benefitted from this - it's especially useful if the product's target market is a niche one. It's a fairly efficient way to target people who are likely to be interested in your app. Be sure that you follow local data and privacy laws when you upload this information, though.

You can create several lookalike audiences, with different sizes and levels of similarity. A smaller, more similar audience will likely be more targeted but have a smaller reach, while a larger, less similar audience will have a wider reach but might be less qualified. You might want to experiment with both to see what works best for you.

You probably should consider influencer marketing...

I'd also suggest you should look at influencer marketing. Outdoor enthusiasts and hikers often follow specific bloggers, vloggers, or social media accounts for inspiration, advice, and gear recommendations. Collaborating with relevant influencers in your niche can be a great way to reach your target audience and build credibility.

When choosing influencers, look for those who have an authentic connection with their audience and whose values align with your brand. Engagement rate (likes, comments, shares) is often more important than the number of followers. A smaller influencer with a highly engaged audience can often deliver better results than a larger influencer with a less engaged audience.

You could offer them free access to your app in exchange for a review or sponsored post. You could also create a custom landing page for their audience with a special offer or discount. This will allow you to track the performance of the influencer campaign and measure its ROI.

You'll need robust analytics...

You'll definetly want a solid analytics setup. Make sure you're tracking the right metrics. Beyond CAC, you should also be looking at conversion rates, website traffic, and user engagement. Google Analytics is a good place to start.

You'll want to configure Google Analytics to track key events on your website and within your app, such as downloads, sign-ups, trial activations, and subscriptions. This will give you a clear picture of how users are interacting with your app and where they might be dropping off. It can also show you which campaigns are effective at driving conversions.

Another option is to consider implementing a marketing attribution model. This will help you understand which touchpoints are contributing to conversions and allocate your marketing budget more effectively. Common attribution models include first-touch, last-touch, linear, and time-decay. You could also use a data-driven attribution model, which uses machine learning to determine the value of each touchpoint based on its actual contribution to conversions.

You can also use UTM parameters to track the performance of your marketing campaigns. These are tags that you add to your campaign URLs that tell Google Analytics where the traffic came from. You can use UTM parameters to track traffic from different ad platforms, email campaigns, social media posts, and influencer collaborations. This will help you understand which campaigns are driving the most traffic and conversions.

I've detailed my main recommendations for you below:

Anyway, scaling a B2C SaaS isn't easy, and it's common to hit roadblocks along the way. Often the best way to see results is to work with someone who has experience in similar scenarios and can advise you properly. If you're keen to discuss this in more detail, I'm happy to book in a free consultation to properly address your questions.

Regards,

Team @ Lukas Holschuh