Hi there,
Thanks for reaching out about your situation with the Google Search ads for your B2B SaaS product. I'm happy to give you some initial thoughts and guidance based on what you've described.
It sounds like you're facing a really common challenge in the B2B SaaS space, especially with a complex, niche product that has a long sales cycle. That $300 CPL for a demo request is definitely high if you need to scale, but it's not entirely surprising given the context. We've seen similar scenarios before with B2B clients.
Often, when the cost per lead is this high, particuarly with search ads where people are showing intent, the issue isn't solely with the ad campaigns themselves. While campaign structure, targeting, and ad copy are super important, the bottleneck is frequently on your end, specifically with your website and the offer you're presenting.
We'll need to look at traffic quality and your website...
Think about it: you're paying a premium to get clicks from companies that are actively searching for solutions in your space. If they land on your site and aren't immediately compelled to take the next step, that click (and the ad spend behind it) is essentially wasted. This drives your effective CPL up because you need many more clicks to get one conversion.
Based on what you've said about your product – predictive analytics for supply chains – it's a significant investment and a complex decision for a business. Changing a core system like that is a huge undertaking, much like switching accounting software for a company. Nobody does that lightly or quickly. They need a lot of convincing, and they need to feel confident it's the right move and that your solution delivers real value.
Now, you mentioned you're driving traffic to a 'request a demo' call to action. For a product like yours, with its complexity and the commitment involved, asking straight for a demo request as the very first step is a pretty big ask. Potential customers are likely still in the research phase, trying to understand options and whether your solution even fits their needs. A demo feels like they're already halfway into a sales process before they're ready.
This is where teh offer is crucial. We've found with many B2B SaaS clients that offering a free trial, even a limited one, works significantly better than just a demo request to get people in the door. People want to kick the tyres themselves, explore the interface, see how it feels, before they commit to speaking with sales. If your competitors are offering long trial periods, that makes just offering a demo even less appealing. Without a compelling offer like a free trial, you're putting a huge barrier in front of your potential customers, which will severely impact your conversion rate from website visitor to lead.
Beyond the offer itself, teh landing page where these ad clicks are directed is absolutely critical. It needs to be incredibly persuasive, clearly articulate the value proposition *for the searching customer*, address their pain points directly (like optimising supply chains), and make the next step (the demo request or ideally, a trial signup) feel easy and obvious. Generic marketing copy just won't cut it for a complex B2B product. We often work with copywriters who specialise in SaaS and B2B because they understand how to speak to these specific audiences and craft copy that converts. If your landing page isn't doing this effectively, you'll burn through budget without getting the leads you need.
I'd say you need to give it more time...
So, before even diving super deep into the ad campaign structure itself, your first priority needs to be strengthening your website and refining your offer. Getting these right will have the biggest impact on lowering your CPL. Once the website and offer are optimised for conversions, the same traffic will yield more leads at a lower cost per lead.
You're currently running Google Search ads, which is likely the right platform for reaching companies actively searching for solutions in your space. That's a good starting point because the intent is high. If they weren't actively searching, you'd be looking more at platforms like LinkedIn for targeted B2B ads based on job titles and industries, but for solving the high CPL on search, focus on the conversion path first.
Once your website and offer are in a better place, you can then fine-tune the ad campaigns. This involves rigorous split testing of different ad copy variations to see what resonates best and generates the highest click-through rates (CTR) from qualified search terms. You also need to constantly refine your keyword targeting, adding negative keywords to filter out irrelevant searches that are costing you money. While scaling later might involve testing different audience layers or creative formats, for now, focus on getting the core Search campaigns efficient.
Retargeting is another strategy that can help reduce your overall acquisition cost. People visiting your site who don't convert on their first visit can be shown ads later on other platforms (like Google Display Network or social media) to remind them about your solution and encourage them to come back and convert. This can help capture leads that weren't ready the first time, spreading the acquisition cost over more successful conversions.
Bringing down a CPL from $300 to $150 or less for complex B2B SaaS isn't a quick fix. It takes time, testing, and a systematic approach. It requires iterating on your landing pages, experimenting with your offer (trial vs demo, length of trial, etc.), and continually refining your ad campaigns based on performance data, both in the ad platform and on your website.
Here’s a quick overview of the recommended steps:
| Priority | Actionable Solution | Details |
|---|---|---|
| 1 | Refine Your Offer | Test offering a free trial (even limited) instead of just a demo request. Make it easy for businesses to evaluate your software without a sales commitment upfront. Consider trial length and features included. |
| 2 | Optimise Your Landing Page | Rewrite landing page copy with a focus on persuasive language tailored to your ideal customer's pain points (supply chain optimisation). Clearly articulate the value proposition of your specific predictive analytics. Use a B2B SaaS copywriter if possible. Improve page speed and user experience. |
| 3 | Implement Rigorous A/B Testing on Website | Continuously test variations of your offer (e.g., free trial vs. different lead magnet), calls to action, headlines, and copy on your landing page to identify what converts best. |
| 4 | Refine Google Search Ads Campaign | Perform detailed keyword research to ensure you're targeting high-intent terms. Add negative keywords to filter irrelevant traffic. A/B test different ad copy variations. Ensure ad messaging aligns perfectly with landing page copy and offer. |
| 5 | Set Up Retargeting Campaigns | Target website visitors (especially those who viewed key pages but didn't convert) with tailored ads on Google Display Network and potentially social media to bring them back to your site. |
Looking for an expert agency...
You're right, finding a good agency that understands complex B2B SaaS and can actually deliver results beyond just clicks is a challenge. Everyone claims to be an expert, and it's hard to see through the marketing speak.
When you're vetting agencies, don't just look at generic case studies. Ask them *specifically* about their experience with businesses that are similar to yours – complex B2B SaaS, long sales cycles, niche markets. Ask them to describe campaigns they've run in this type of environment. What were the specific challenges? How did they diagnose performance issues like high CPL? What was their process for bringing costs down while *maintaining or improving lead quality*? This last point is super important – you don't just want cheap leads, you need leads that actually have the potential to become customers.
A good agency will talk about a process that involves more than just tweaking bids. They should discuss how they would approach testing your offer (trial vs demo) and how they'd collaborate with you or a copywriter on improving your landing page conversion rates. They should be focused on the entire funnel, not just the ad platform. Ask them about their testing methodology – how do they identify new audiences, test new ad creatives, and systematically improve conversion rates both on the ads and on your site?
You asked about performance guarantees on CPL. Honestly, that's usually not something a reputable agency will offer, especially not upfront. There are too many factors outside of their control – your product, your sales process, your pricing, the competitive landscape, even the economy. An agency can optimise the marketing funnel, but they can't guarantee your sales team will close a certain percentage or that your product is a perfect market fit at its current price point. Instead of a guarantee, focus on understanding their process, their reporting, and how they measure progress. They should be able to show you how they plan to iterate, test, and adapt based on data to *work towards* your target CPL over time. Ask for examples of the reporting they provide – it should go beyond just ad metrics and ideally include data on lead quality or progress through your sales pipeline if possible.
We've run quite a few campaigns for B2B SaaS companies, tackling similar challenges. We've seen costs per lead vary hugely depending on the offer and the market. For example, we managed to get a CPL down to £7 for a Medical Job Matching SaaS using Meta and Google, which shows what's possible with the right targeting and offer structure, although that's a bit different to complex supply chain software. We've also seen CPLs around $22 for B2B decision makers on LinkedIn. The key is understanding that for a product like yours, getting the CPL down is a process that involves optimising both the traffic source *and* the conversion path on your website, along with having the right offer in place.
Finding an agency with specific experience in your niche, or at least in complex B2B SaaS, who understands the importance of the offer and the website conversion rate, is essential. They should be partners who can help you diagnose not just the ad campaign issues but also the potential bottlenecks on your site and within your offer structure.
Hopefully, this gives you a clearer picture of why you might be seeing high CPLs and what to look for in an agency.
Trying to figure this out on your own, especially while running your startup, is tough. It requires deep expertise in paid media alongside an understanding of B2B sales cycles and conversion rate optimisation. Sometimes bringing in outside help who lives and breathes this stuff can accelerate your progress significantly and prevent costly mistakes.
If you'd like to discuss your specific situation in more detail and get some tailored initial advice, we'd be happy to book in a free consultation call.
Regards,
Team @ Lukas Holschuh