Hi there,
Thanks for getting in touch and asking for our advice on your new CDP platform and advertising strategy. I'm happy to give you some initial thoughts and guidance on this before you start spending more money.
We'll need to look at what works for SaaS...
First off, I'd say you're spot on to get a second opinion before you scale up your spending. Loads of companies rush into this and waste money on ads that don't work. Paid advertising is a bit of a minefield if you don't have experience here.
When looking for feedback, you defo need to make sure it's someone who knows SaaS. What works for e-commerce just doesn't work for SaaS. I have run quite a few campaigns for B2B SaaS, so I know what I'm on about and what sort of strategies get you the right results. I remember one campaign where we reduced the CPA (Cost Per User Acquisition) from £100 to £7 for a Medical Job Matching SaaS. It's all about knowing where to focus your energy.
I'd say you need to nail the targeting...
One thing I would say is that you really need to nail the targeting. This is where loads of SaaS companies cock things up. You'll probably be targetting a small audience which means you have to get it right. Here are some questions you want to be thinking about:
- Are you targetting by job title?
- Company size?
- Industry?
- Are you using lookalike audiences?
One campaign we worked on generated 4,622 registrations at a cost of just $2.38 each for a software client by fine-tuning the audience using Meta Ads. It's details like that that make a big difference.
You probably should focus on your ideal customer's pain points...
Also, make sure the ad copy speaks directly to the pain points of your ideal customer. I have found this really important in the past. The ad copy is key, it can make or break a campaign. I remember one SaaS campaign where we focused the ad copy on the specific pain points of the target audience, which greatly improved results.
You'll need to look at testing creative ideas...
Another thing to consider is testing lots of different creative ideas and seeing what works best for your audience. This could include testing different ad formats, different messaging, and different visuals. You should have a clear idea of what each ad set will be testing and what you want to learn. I'd recommend keeping detailed notes on the results of tests that you can reference in the future.
You might find some creative ideas work way better than you'd expect. We've had several SaaS clients see really good results with UGC videos. There are lots of angles to test with user generated content. It's worth putting some time and budget into this.
You might want to try Retargeting...
Retargeting is well worth a shot. It involves showing ads to people who have already visited your website or interacted with your ads. This can be a very effective way to reactivate users, reduce abandoned registrations, and convert more of your website visitors, which all works to lower your acquisition costs.
You could think about ad platform options...
You might want to think about trying out multiple different ad platforms. There is a limited number of people that are most likely to convert within each audience. So if you've maxed out the pool of people likely to convert with your budget on Meta ads, you could try a new ad platform and tap into a different audience this way. For example, we helped a software client drive 3,543 users at £0.96 cost per user using Google Ads.
I've detailed my main recommendations for you below:
| Area | Recommendation |
|---|---|
| Targeting | Review and refine your audience targeting to ensure you're reaching the most relevant potential customers. Consider job titles, company sizes, and industries. |
| Ad Copy | Tailor your ad copy to directly address the pain points of your ideal customer, highlighting how your CDP solves their specific challenges. |
| Creative Testing | Implement a robust creative testing strategy, experimenting with different ad formats, messaging, and visuals to identify what resonates best with your audience. |
| Retargeting | Implement retargeting campaigns to re-engage website visitors and ad engagers, nudging them towards conversion. |
| Platform Diversification | Consider testing different ad platforms to tap into new audiences and potentially lower acquisition costs. |
Getting all of this right can be a bit tricky and time consuming, especially when you're trying to focus on building your product. That's where someone with expertise in scaling software campaigns can really help. We're pretty confident we could help you get some great results. I'd be happy to have a chat with you about your specific situation and give you some more tailored advice. We offer a free initial consultation where we review your strategy and account together which is usually super helpful and gives potential clients a taste of the expertise they'll see going into their project if they decide to work with us. There's no obligation, of course. Just let me know if you're interested.
Regards,
Team @ Lukas Holschuh
