Hi there,
Really happy to give you some initial thoughts and guidance on your B2B SaaS Meta ads and ROI. From what you've said, it sounds like you're encountering the classic early-growth scaling challenge, which is normal.
We'll need to look at product complexity...
One of the biggest drivers of lead cost in B2B SaaS is product complexity. It's something that often gets overlooked because people get too focussed on surface-level things. Think about it like this: if your chatbot software is super easy to understand and implement, people will be much more likely to sign up without needing a ton of convincing. On the other hand, if it's packed with features that need explaining or if it solves a really niche problem that not everyone groks, you're going to need to work harder to get those leads.
I'd say the real question is: how much hand-holding does your sales team need to do to close a deal? If they're spending hours on demos and answering loads of questions, that's a sign that your leads aren't "warm" enough, and you're essentially paying for your sales team's time through expensive ad costs. Consider a few angles here:
- Could your onboarding process be simplified?
- Are you targeting the right type of customer who already understands the value of your product?
- Is there an easier to understand entry-level plan that could be offered?
These things can make a bigger difference than almost anything else to the ads costs.
I'd say you need to focus on campaign objectives...
Another big thing to consider is your campaign objective. Are you going straight for lead gen ads, or are you trying to warm people up first with some awareness campaigns? Straight lead gen can work, but it's like asking someone to marry you on the first date – you'll get a few takers, but most people will run a mile. Awareness campaigns can feel like a waste of money upfront, but they can seriously pay off down the line by making your leads cheaper and more qualified.
I remember one client we worked with, similar B2B SaaS, who were getting absolutely hammered on lead gen costs. What we ended up doing was flipping the script and running a video view campaign first, showing off the software in action and explaining the benefits in plain English. Took a few weeks to see the results, but cost per lead fell by nearly half in the long run. Think about your customer journey. Are people even aware that they have a problem that your chatbot can solve? If not, you need to educate them first before you can expect them to fill out a lead form.
You probably should optimise your targeting and audience...
Geography does play a role, but it's not just about which country you're targeting. It's more about the type of area. Big cities are always going to be more expensive than smaller towns. Same with really competitive markets where everyone is fighting for the same eyeballs. If you're early-stage, maybe consider starting with some smaller markets to get some traction and then expand later once you've got a solid base. If you're targeting globally, maybe look at excluding the most expensive geos if they aren't worth the extra costs.
Thinking more broadly about audience, you need to be dead clear on exactly who your target customer is. What are their job titles, what industries do they work in, what are their pain points? The more specific you can get with your targeting, the better your chances of reaching the right people and not wasting money on those that will never convert. It's worth having a proper think about your ideal customer persona (ICP). You'll be able to dial your targeting in so much better if you do.
You'll need to test and measure different things...
The key thing is to be constantly testing and measuring. Don't just set up your ads and leave them running. Try different ad copy, different visuals, different targeting options, and see what works best. Look at your data. Where are people dropping off in the funnel? Are you getting loads of clicks but no conversions? That could be a sign that your landing page isn't up to scratch. Are you getting a high bounce rate? That could mean you're targeting the wrong people. It's all about iterating and refining your approach based on what the data is telling you.
Don't get too hung up on industry benchmarks. They can be a useful starting point, but every business is different. What works for one company might not work for another. Focus on your own data and your own results, and try to beat your own best. Getting hung up on other peoples' results won't get you anywhere.
There's loads of other factors that you might wanna be thinking about but this gives you a start.
I've detailed my main recommendations for you below:
| Area | Recommendation | Why |
|---|---|---|
| Product Complexity | Simplify onboarding, clarify value proposition, offer a clearer entry-level plan. | Reduces sales hand-holding, attracts more readily convertible leads. |
| Campaign Objectives | Consider awareness campaigns before lead gen. | Warms up audience, potentially lowering long-term lead costs. |
| Targeting & Audience | Refine geographic targeting, focus on ICP. | Reduces wasted ad spend, improves lead quality. |
| Testing & Measurement | Constantly test ad copy, visuals, and targeting; analyse funnel drop-off points. | Optimises performance based on real-time data, improves conversion rates. |
Scaling B2B SaaS campaigns can be tricky, and it often makes sense to get some outside perspective. We've worked with a bunch of software companies in a similar position, so we've seen what works and what doesn't. You might find you need a copywriter for the landing page and ads copy - we have a copywriter with experience writing for SaaS. If you'd like to chat through your specific situation and get some more tailored advice, feel free to book in a free consultation. I think we could really help.
Regards,
Team @ Lukas Holschuh
