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Leads are the backbone of a SaaS startup because the number and quality of leads influence all key metrics like revenue, churn and retention rates, cost per customeracquisition, etc. But, despite knowing full well the criticality of solid lead generation, many SaaS marketers do it wrong. All SaaS companies understand this.
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But research shows that focusing your efforts on the customers you already have is a better long-term strategy that can generate a higher ROI. It can cost 5x more to attract a new customer than it does to retain an existing one, and increasing your customer retention rate by just 5% can result in a profit increase of over 25%.
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Spend 10% of Revenue on Marketing. Senior leadership and marketers have differing opinions when it comes to the marketing organization’s goals. The management team expects marketing to lower customeracquisition costs. Create a big data framework that’s aligned with your organizational and marketing goals.
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