Customer Acquisition Spending: Lessons from Workday

Practical Advice on SaaS marketing

Specifically, it illustrates the need for software-as-a-service (SaaS) companies to spend money - lots of it - on customer acquisition. times more on customer acquisition than annual revenues, and in 2007 it spent nearly 18 times more than annual revenues. With only $455,000 in revenues in 2007, Workday funded a direct sales force and a professional marketing effort costing more than $8 million. customer acquisition marketing spending SaaS marketing

Disrupting the Desk Phone: How and Why We Made a $50M Acquisition with Dialpad (Video + Transcript)

SaaStr

With one startup acquired by Yahoo in 2005, another acquired by Google in 2007 and a background as an M&A lawyer, Craig’s perspective on M&A is insightful for any startup founder looking to acquire another company. Thanks so much everyone for joining us for our fireside chat today, disrupting the desk phone: how and why we made a $50 million acquisition. And when I was at Google, we did a couple acquisitions.

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The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics (Video + Transcript)

SaaStr

Join Qualtrics Co-Founder and CEO alongside SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Ryan Smith: The backstory here is we turned down an acquisition offer for $500 million in 2012. Brand experience, measuring people’s brands, employee experience, it’s been $10 billion in acquisitions in that space and we’re kicking butt.

How Will DiscoverOrg’s Acquisition of ZoomInfo Affect Sellers?

Sales Hacker

A few months ago we wrote about Zoominfo’s acquisition of Datanyze in an effort to strengthen its sales intelligence engine. DiscoverOrg, a best-in-class B2B contact database founded in 2007, acquired Zoominfo, another best-in-class B2B contact database which was founded in 2000, in early February. So with this new M&A activity just months after the earlier acquisition we reported on, what are some goals we can now set as sellers and marketers to evolve and thrive?

SaaStr Podcast 215: Ryan Smith, Qualtrics Co-Founder & CEO On The Things Nobody Tells You About an $8 Billion Acquisition

SaaStr

Qualtrics Co-Founder and CEO Ryan Smith sits down with SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Here’s what Jason and Ryan talk about: Why did Qualtrics turn down a $500M acquisition offer in 2012? Brand experience, measuring people’s brands, employee experience, it’s been $10 billion in acquisitions in that space and we’re kicking butt.

The Four Key Trends of the Startup Acquisition Market

Tomasz Tunguz

The startup acquisition market is poised to have its best year in nearly a decade. I’ve observed four: The total number of startup acquisitions has remained relatively constant over the past 14 years. But, the amount of large, disclosed startup acquisitions has decreased by about 25% in the past 14 years. Smaller acquisitions and acquihires have taken up the slack. The blue line shows the number of disclosed value acquisition.

How To Keep Your Customers For a Decade. Or Longer.

SaaStr

it wasn’t until later on in 2007 that we had enough revenue to create a large enough group of customers to go on a 10 Year Journey with. Even post-acquisition.

18 investors fueling Latin America’s SaaS superstars

SaaStock

To help out founders on the way, Astella Investimentos’ mentors provide guidance in the most crucial areas, such as customer acquisition, product development, and company training, as well as creating a roadmap for scalability and all stages of business development. It was launched in 2007 to operate the Criatec I Fund’s investments in São Paulo. Founded: 2007.

The top SaaS companies ruling the East Coast

SaaStock

Founded: 2007. By making sense of the data, businesses can increase their customer acquisition and retention. As we wrote in our launch post about expanding SaaStock New York into SaaStock East Coast , our main aim is to foster a community of top SaaS companies that spans all the way from Florida to Quebec. The SaaS industry’s beating heart will probably always be New York, and it will also be the home of SaaStock East Coast on June 4-6.

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The 3-Step Startup Marketing Framework We Created to Grow KISSmetrics

Hitenism

The first Twitter hashtag was used by Chris Messina in 2007. — Chris Messina (@chrismessina) August 23, 2007. CAC (customer acquisition cost) was low. It was 2008, and I was having a classic founder moment. I had no idea what I was doing. But at least I was doing! I was founding a SaaS business, KISSmetrics. Like any startup, we were flailing, failing, and on fire, all at the same time. It was a wild, insane, and ridiculously exhausting experience.

Beyond the Downturn: Recession Strategies to Take the Lead

OPEXEngine

A higher cost of capital will put pressure on capital spending, so if companies want to invest in technology, growth opportunities or acquisitions, the time is now. It’s overdue.

Dropbox S-1 Analysis - The King of Freemium

Tomasz Tunguz

Founded in 2007, Dropbox epitomizes the freemium go-to-market. But Dropbox’s net income and free cash flow from operations margins are substantially higher, because of the self-serve customer acquisition dynamics. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month.

David Barrett, CEO of Expensify: Good Intentions, Bad Advice: How to Keep Your Board Aligned with Your Vision (Video + Transcript)

SaaStr

In 2007, they were like, “Well, this is way too weird. It could work, maybe, but 2007, not a good year for the banking sector, too weird, too risky,” I’m out.

More Focus on SaaS Gross Margins in 2020

OPEXEngine

A good example of a SaaS company from that period with a strong recurring model enabled by professional services is Netsuite; here’s a chart before and after IPO in 2007. In early years, many companies use Professional Services for customer acquisition and retention, giving away services at cost or even below cost. In these early years, companies typically are laser-focused on finding a scaleable sales model while Cost of Revenue is an after-thought.

SaaStr’s Podcast “Best Of Guide” Our Top 10 Podcasts of All Time

SaaStr

About the episode: Mark Suster is Managing Partner at Upfront Ventures which he joined in 2007, having previously worked with Upfront for nearly 8 years as a two-time entrepreneur. Before joining Upfront Mark was Vice President, Product Management at Salesforce.com following its acquisition of Koral, where Mark was Founder and CEO. Here is our countdown to our top ten most downloaded podcasts of all time.

The First Generation of the Talent Software Wars

Tomasz Tunguz

Both companies eventually offered talent acquisition, performance management, and learning tools for human resources teams. SuccessFactors 39 1300 30 2007 6. At the time of their acquisitions, SuccessFactors was growing more quickly than Taleo, likely contributing to the 2x premium the company commanded in the M&A market. In the late 1990s, two of the dominant talent management platforms were founded.

The SaaS superstars of the East Coast

SaaStock

Founded: 2007. By making sense of the data, businesses can increase their customer acquisition and retention. As we wrote in our launch post about expanding SaaStock New York into SaaStock East Coast , our main aim is to foster a SaaS community that spans from Florida to Quebec. The SaaS industry’s beating heart will probably always be New York, and it will also be the home of SaaStock East Coast on June 4-6. However, we believe in giving the entire coastline a chance to flourish.

SaaStr Podcasts for the Week with Byron Deeter, Elliott Robinson, Henry Schuck, and Jason Lemkin

SaaStr

You can also find your second act inorganically via acquisition as Twilio did with SendGrid. This one is niche, but it’s interesting, not doing mergers and acquisitions sooner. I bootstrapped the company with my co-founder in 2007. We made that ZoomInfo acquisition in 2019.

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How to Build an Email List from Scratch (A Step-By-Step Guide)

Unbounce

Seriously, an article like this one has popped up every year since 2007. Get $10 Off Your First Order” or “Get Free Shipping” can be powerfully persuasive for visitors… you just need to make sure you factor those expenses into your cost-per-email-acquisition.

Benchmarking LinkedIn's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

In 2007, the Premium Subscriptions generated 53% of the revenue. To acquire customers, LinkedIn employs two customer acquisition mechanisms: an online acquisition team and a field sales team. In 2007, online sales generated 63% of revenue. Because of the combined online and field sales acquisition channels, and because the company serves both enterprise customers and prosumer types, LinkedIn is able to achieve best in class sales efficiency.

Becoming Indistractable

ProfitWell

Scribd —a company first launched as a document-sharing service in 2007, which now offers access to a library of ebooks, audiobooks, newspapers, and magazines for that sweet spot price of $8.99 The new funding] "will enable us to continue to operate sustainably and efficiently while accelerating our growth, product innovations, content acquisition and continued investment in our employees.” Today, we see the publishing industry as a subscription stalwart.

SaaStr Podcast #376 with ZoomInfo CEO Henry Schuck: “10 Mistakes the CEO of ZoomInfo Made on His Journey to IPO (Part 2)”

SaaStr

When we made the acquisition, I remember being in a meeting with our senior executives. About four months after we made the acquisition, we announced to the team we were changing the name. And I think we went into the acquisition going, “Well, that company’s growing faster.

Product Channel Fit Will Make or Break Your Growth Strategy

Brian Balfour

Don't have team members focused on user acquisition and team members focused on product in silos from each other. Then in early 2007, social emerged as a new channel with the Facebook platform. This is part 3 in a series about the growth frameworks companies need to grow to $100M+ Part One: Introduction & Why Product Market Fit Isn't Enough. The Road to a $100M Company Doesn’t Start with Product. Subscribe to get the rest of the series.

The 57% Drop in SaaS Valuations

Tomasz Tunguz

The go-to-market advantages of SaaS including faster sales cycles, beneficial cash cycles, online/mobile acquisition and bottoms up adoption are real, enduring , transformative changes. An example of a relatively extreme case, from 2001 to 2007, Concur grew between 0% and 35% each year. What a difference a month makes.

How Clio grew from a lifestyle business to a legal tech juggernaut

Point Nine Land

For Jack Newton and Rian Gauvreau, the lightbulb moment that led to the creation of Clio came out of a casual conversation they had in 2007 with the director of practice standards at the Law Society of British Columbia, an organization that can be compared in function to the National Bar Association in the U.S. Again, this was 2007. This wasn’t the only problem Clio was facing in terms of user acquisition.

Benchmarking Hubspot's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

CTCT 2007 9 31. In 2013, the company recorded a sales efficiency of 0.47, meaning about $2 of sales and marketing spend is required to generate $1 in gross profit and the payback period, the number of years before a customer's revenue offsets the cost of customer acquisition is just over 2 years. But that incremental revenue costs about 75% more in customer acquisition costs over the same period.

8 Tough Lessons from Closing 12,000 Customers at WebPT (Video + Transcript)

SaaStr

When we actually did our market research, we found that 80% of physical therapists were still using and documenting on pen and paper back in 2007. As Nancy will talk about later in terms of our M&A strategy, one of the really cool things that we’ve been able to do is have other acquisitions and products that have actually been developed within our industry that we’ve been able to bring under the WebPT umbrella.

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The Hardest Round to Raise for Startups

Tomasz Tunguz

But the number of $5 to $15M Series Bs hasn’t changed since 2007. I’m assuming that the rates of company acquisition, company failure and general founder behaviors have remained constant over the past ten years. Over the past few years, I’ve debated the existence of a Series A crunch and found in that analysis that the volume of Series As was increasing. This trend hasn’t abated.

Case study: How Zuora drives 60%+ of its growth by outbound, even when accounts need nurturing for years

Close

Zuora was founded in 2007 by K.V. Acquisition/spin off of business line. Excerpt from the 2nd edition of From Impossible to Inevitable 2nd Edition. More often than not, revenue leaders are impatient for results now. Everyone feels the pressure, but how do you handle it? No joke, we’ve spoken to CEOs who want to make money on outbound prospecting in 90 days, but when asked how long their sales cycle is, they answer “four to six months.”

SaaStr Podcasts for the Week: May 17, 2019

SaaStr

As for Godard, he founded his first business, BigMachines, in 2000, a business he scaled to $50m in revenue and over 300 people up until it’s acquisition to Oracle 11 years later for $400m. A business he scaled to 50 million dollars in revenue and over 300 people up until its acquisition to Oracle 11 years later for 400 million dollars. And that’s how we were able to then survive from 2002 til about 2007, when the cloud market finally took off.

How Yelp drove down churn by building up customer success

Inside Intercom

She joined the company in 2007 back when it was just 30 people and has been instrumental in helping the company scale both its team and its market share over the years. Retention begins to take precedence over acquisition, or vice versa. Leverage customer word of mouth for customer acquisition.

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Benchmarking Xero's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

Xero Income Statement 2007 2008 2009 2010 211 2012 2013 2014. Xero’s efficiency is driven by its customer acquisition strategy, winning accountants and encouraging them to migrate all their business from a competitor to Xero. This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders.

Sales Hacker Recommends: 97 Best Sales Books for Peak Performance (2020 Update)

Sales Hacker

I’ve followed Jill Konrath since 2007, when I subscribed to her “Selling to Big Companies” blog. It shows you how to target and track your ideal prospects, optimize contact acquisition, continually improve performance, and hit your revenue goals quickly, efficiently, and predictably.

Sales 111

Building a Roadmap for Early-Stage SaaS Growth [Webinar]

SaaSOptics

He’s experienced in leading multiple B2B software companies from startup through acquisition. He’s seen acquisition of JouleX, when it was bought by Cisco in 2013 for 107 million and he was a member of the founding management team and Vice President of Marketing for Internet Security Systems, where he grew the company from 5 million to over 400 million. Ari is an alum of Techstars’ first class in 2007 with Filtrbox, which was acquired by Jive Software in 2010.

Building a Roadmap for Early-Stage SaaS Growth [Webinar]

SaaSOptics

He’s experienced in leading multiple B2B software companies from startup through acquisition. He’s seen acquisition of JouleX, when it was bought by Cisco in 2013 for 107 million and he was a member of the founding management team and Vice President of Marketing for Internet Security Systems, where he grew the company from 5 million to over 400 million. Ari is an alum of Techstars’ first class in 2007 with Filtrbox, which was acquired by Jive Software in 2010.

Building a Roadmap for Early-Stage SaaS Growth [Webinar]

SaaSOptics

He’s experienced in leading multiple B2B software companies from startup through acquisition. He’s seen acquisition of JouleX, when it was bought by Cisco in 2013 for 107 million and he was a member of the founding management team and Vice President of Marketing for Internet Security Systems, where he grew the company from 5 million to over 400 million. Ari is an alum of Techstars’ first class in 2007 with Filtrbox, which was acquired by Jive Software in 2010.