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SaaS Customer Acquisition Strategy: 2024 Guide

Advanced SEO, Linkedin, Marketing, SEO Blog
Saas Cac By The Numbers Tn

Last Updated: April 17, 2024

In crafting your SaaS customer acquisition strategy, your most helpful guide is data. You may have an intuitive sense of where your customers are and what would convince them to adopt your product, but having the aggregate experience of other SaaS companies in the form of statistics is the better way to make marketing decisions.

This report is compiled from 46 SaaS companies that invested heavily in marketing and sales over a three year period from Q1 2021 to Q1 2024. It provides an overview of the stages of SaaS customer acquisition, then shares the most important statistics within each stage.


  • Customer Acquisition Cost, or CAC, is the total sales and marketing cost to acquire all new customers divided by the number of new customers acquired. It can be segmented by marketing channel, industry, and target audience group (e.g. SMBs, Middle Market, Enterprise). 
  • Lifetime Value of a Customer, or LTV / CLV, is the average gross profit that will be earned from each customer over the course of a business relationship with them.
  • Conversion Rate is the number of conversions in a particular stage of the marketing funnel divided by total visitors or leads entering that stage. “Conversion rate” on its own most often refers to Visitor-to-Lead conversion rate, and later stage conversion rates are specifically defined as such, e.g. Lead-to-MQL conversion rate

Stages of SaaS Customer Acquisition

There are 3 phases to acquiring a SaaS customer: Lead Generation, Lead Nurturing, and Sales.

Lead generation, which is often referred to as top-of-funnel lead generation, is getting new prospects to become aware of your product. 

Lead Nurturing, sometimes called lead conversion, is getting prospects who are aware of your product further engaged with marketing or sales until they convert into marketing qualified leads (MQLs) and are passed to a salesperson.

Sales takes place once a lead has made active contact with a member of your sales team and expressed intent to make a purchase. Sales is outside the scope of this report.

SaaS Lead Generation

Creating a customer acquisition strategy for a SaaS business requires an understanding of three key concepts: User intent; Lead generation channels; and high-ROI lead generation channels for your industry and target audience. 

SaaS User Intent

Each potential customer will fall somewhere along the spectrum of user intent, from the most transactional — those that are ready to buy right now — to the most research-oriented, where the user is simply looking to learn about your industry with no immediate interest in buying. Here is a visualization of the spectrum of user intent:

Fps Searchintentscale V2Though every lead generation channel has users that fall along the entire spectrum (e.g. a Google searcher can be casually researching or ready to buy now), each one has its sweet spot. For example, e-mail marketing tends to be more of a scattershot approach with less targeting towards transactional users, whereas Account-Based Marketing (ABM) is targeted only to more serious prospective buyers.

Gaining a good understanding of user intent will allow your marketing team to generate landing pages for your digital marketing campaigns that increase the likelihood of conversion. However, it’s helpful to know which lead generation channels to invest in in the first place. The next section provides benchmarks for marketing channel effectiveness. 

SaaS Marketing Channel Effectiveness

Effectiveness in lead generation is defined primarily by the ROI you can generate directly from the channel; however, each channel has substantive secondary benefits you should also understand. For example, thought leadership marketing generates original content that can be used in social media and e-mail marketing, and PR is helpful in launching a new software product or feature as well as generating links for SEO. 

Let’s begin with the ROI of 8 major marketing channels SaaS companies use, expressed as a ratio of dollars earned to dollars spent.

NOTE 1: Organic Search (SEO)’s ROI is contingent on twice-per-week publishing of thought leadership style content.

NOTE 2: E-mail Marketing’s ROI is contingent on having (a) a well vetted list of emails, and (b) compelling original content procured from other channels. Furthermore, email campaigns’ ROI comes from nurturing existing leads rather than generating new leads.

As you can see, PR’s value does not come in direct lead generation; however, its secondary benefits of brand validation and brand awareness may be worthwhile for your particular company.

On the other end of the spectrum, both SEO and e-mail marketing have very high ROIs as long as you’re able to create the right conditions for each to thrive — a specialized team willing to create exceptional content in the case of SEO, and a curated contact list in the case of e-mail marketing.

ROI on its own is of general interest; the more granular way to view the effectiveness of a marketing investment is by comparing your LTV to the average CAC of each marketing channel. Below, you will find the average CAC in 10 SaaS industries, as well as breakdowns by customer type and marketing channel. Afterwards, you can see average SaaS LTV broken down by industry. We end this section with benchmarks for LTV:CAC ratio. 

Average SaaS CAC by Industry

Below are 10 SaaS industries along with their average CAC across all industries in the three year period we measured.

Average Cac Vs. Saas Industry 1

SaaS Industry Average CAC SaaS Industry Average CAC
Adtech $953 Entertainment $612
Business Services $785 Fintech $2,487
Cybersecurity $3,441 Industrial $3,173
Design $891 Medtech $3,662
Edtech $1,429 Pharmaceutical $2,691

Source: The SaaS LTV to CAC Ratio

Average SaaS CAC by Customer Type

Now let’s segment CAC by the type of customer being targeted.

SaaS Customer Type Average CAC
Consumer $233
Small B2B $726
Middle Market $3,596
Enterprise $8,461

Source: Average SaaS CAC by Target Audience Company Size

Average SaaS CAC by Marketing Channel

As our final CAC metric, let’s look at the average CAC of 12 marketing channels across all industries.

Saas Cac By Marketing Channel

Marketing Channel SaaS CAC Marketing Channel SaaS CAC
Organic Search (SEO) $508 Trade Shows $1,420
Paid Search (PPC/SEM) $817 PR $1,051
Email Marketing $471 Account Based Marketing (ABM) $4,084
LinkedIn Ads $708 Outdoor Advertising $2,904
LinkedIn Organic $803 Video Marketing $967
Webinars $510 Podcasts $1,087

Average SaaS LTV by Industry

Moving to customer lifetime value, below is the average SaaS LTV (CLV) in the same 10 industries.

SaaS Industry LTV SaaS Industry LTV
Adtech $6,800 Entertainment $4,080
Business Services $2,400 Fintech $11,700
Cybersecurity $15,500 Industrial $10,800
Design $5,800 Medtech $16,300
Edtech $7,100 Pharmaceutical $11,200

Source: SaaS LTV Industry Benchmarks

The SaaS LTV:CAC Ratio

Finally, let’s look at LTV to CAC ratios in these industries. This ratio is considered the holy grail of benchmarks by which to evaluate your marketing success. 

SaaS Industry LTV:CAC  SaaS Industry LTV:CAC 
Adtech 7:1 Entertainment 6:1
Business Services 3:1 Fintech 5:1
Cybersecurity 5:1 Industrial 3:1
Design 6:1 Medtech 4:1
Edtech 5:1 Pharmaceutical 4:1

Source: SaaS LTV to CAC Ratio Benchmarks

SaaS Lead Nurturing

When you’ve invested in lead generation and have prospects engaged with your brand, the next phase of SaaS customer acquisition is lead conversion. During this phase, you’ll want to optimize the conversion rate at each stage of the marketing funnel. Here is one common representation of the marketing funnel:

Saas All Conversion.psd
You’ve probably encountered Conversion Rate Optimization (CRO), which focuses on improving website visitor-to-lead conversion by making changes to the words, graphics, and user experience of each page on your website. However, there is a distinct art to moving users from each stage to the next until they become a customer. To get a better sense of the conversion rate you should be seeking at each stage, we provide conversion rate benchmarks below.

SaaS Conversion Rates

In the below sections, we segment SaaS conversion rates at each stage in the funnel by marketing channel and industry. 

SaaS Conversion Rates By Marketing Channel

Following is the same visualization of the marketing funnel from each of the three most popular lead generation channels — SEO, SEM, and LinkedIn Ads — with the conversion rate between each stage noted.Organic Search Conversion
Paid Search Conversion

Linkedin Coversion

SaaS Conversion Rates By Industry

For more precise benchmarks, this table gives average conversion rates for each step in the marketing funnel segmented by SaaS industry.

SaaS Industry Visitor to Lead Lead to MQL MQL to SQL SQL to Opportunity Opportunity to Closed
Business Services 1.9% 37% 39% 45% 36%
Education 1.4% 46% 35% 39% 40%
Engineering 1.6% 41% 40% 44% 48%
Financial 1.7% 38% 42% 48% 39%
Healthcare 1.8% 48% 43% 41% 35%
Hospitality 1.6% 45% 38% 38% 38%
Industrial 2.1% 47% 39% 42% 39%
Marketing 1.4% 39% 35% 40% 37%
Real Estate 1.1% 38% 35% 40% 41%
Retail 2.1% 41% 36% 45% 39%

Armed with these averages, you can compare the performance of your lead generation, marketing, and sales efforts to those of other successful SaaS businesses. 

SaaS Customer Acquisition: Next Steps

We hope you’ve found this report useful. If you have any questions or would like to request a pdf, you can contact us here.

We also help some of the top companies in the world — from SalesForce to Logitech to US Bank — generate leads. If you’d like some help creating your strategy or filling the top of your lead generation funnel, we are experts at doing so through SEO, paid search, and e-mail marketing. 

Evan Bailyn

Evan Bailyn is a best-selling author and award-winning speaker on the subjects of SEO and thought leadership. Contact Evan here.