Instructor for this course
more

This course aims to cover the costs associated with customer acquisition for Software as a Service (SaaS) and digital marketing. While the arithmetic might be simple, the ability to understand customer acquisition costs and compare them relative to the lifetime value brought in by the customer is fairly complex.

We, therefore, aim to shed some light on the benchmarks of customer acquisition costs(CAC) and lifetime value (LTV), as well as other metrics which help understand the overall financial implications of your marketing activities.

At the end of this course, you’ll understand in a deeper way how to assess whether your business model is failing due to high CAC costs. You’ll also understand the interrelationship that CAC has between churn rates, profitability, and cash flow.

We set standards for both SaaS and digital marketing companies and outline best practices for both industries. 

Learning Objectives

  • Explore the cost drivers of customer acquisition within Software as a Service (SaaS) and Digital Marketing businesses.
  • Identify benchmarks for efficient and optimal customer acquisition costs (CAC) and lifetime value. (LTV)
  • Explore ways to optimize CAC and LTV.
  • Discover ways to calculate key metrics such as CAC, LTV, Annual Revenue Per Account (ARPA), Revenue, Churn Rate, and Monthly Recurring Revenue (MRR).
  • Identify key SaaS goals and profitability metrics such as microeconomic profitability, overall profitability and profitability per employee.
  • Discover the key drivers of microeconomic profitability on the LTV side such  as ARPA, average customer lifetime, cost to serve, churn rate. As well as on the CAC side such as number of closed deals, total cost of sales and marketing, sales funnel conversion metrics, marketing program costs, level of touch required, personnel costs.
  • Explore the relationship between cash management and CAC.

 

Last updated/reviewed: January 25, 2018

3 Reviews (11 ratings)Reviews

1
Member's Profile
Awful course; complete waste of my time. Very basic and difficult to understand.
5
Member's Profile
This hit the most important elements of SaaS metrics, and the expected results. Appreciated providing target rates.
5
Member's Profile
Fantastic class. Concise and focused on the metrics and how to evaluate them.

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. 

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  2:49Introduction to SaaS and Digital Marketing Metrics
  5:24Customer Acquisition
  6:08LTV
  5:35CAC Payback and Managing Churn
  5:41Reducing Churn Rates and Summary
CONTINUOUS PLAY
  25:37SaaS and Digital Marketing Metrics
SUPPORTING MATERIALS
  PDFSlides: Saas and Digital Marketing Metrics
  PDFSaas and Digital Marketing Metrics
REVIEW AND TEST
  quizReview Questions
 examFinal Exam