Can you run a SaaS subscription-based account & acquire new users profitably? Absolutely. You can even double the profit on the first touch-point!
Thrive Themes needed help with growing their business with Meta and Google Ads. Our team managed to hit this goal by investing a lot in cold traffic (prospecting) and balancing this out with the right remarketing strategy.
Our client’s target market is solopreneurs who want to build their own websites instead of paying others to do it. They have a very well-established business and are well-known in their niche, however, using paid ads to actually grow was a challenge.
It’s simple – without new customers, there is no growth. Increasing the prospecting ad spend profitably is what’s usually the most difficult thing to get right.
Early on, we figured out that we are not able to spend a little to acquire a new customer on the first touch-point, so we focused on lowering the CPA in remarketing.
With the right messaging, utilizing customer reviews & testimonials, and with a playful approach to ad copy and creative, we managed to do just that, allowing us to keep spending more and more on prospecting.
They had an okay experience when working with a freelancer, however, when they hit the ceiling, they realized that a single person can’t help them scale.
This is where good ad agencies excel since they have a lot of collective experience, better resources, and tried-and-tested strategies in various niches.
They chose Digital Rocket because of all this. What cemented their decisions was our transparency & ability to fit in great with the existing, in-house teams.
First, we wanted to make sure we are profitable. With our account structure & optimization, we quickly stabilized the performance above 2 ROAS. Next, we needed to scale.
In the beginning, this wasn’t too difficult, but as more and more privacy updates started affecting our tracking and as the ad spend went up, we had to reconsider our targets.
We switched over from optimizing after ROAS to optimizing after MER (marketing efficiency ratio) in August 2022, and soon, the results followed. Even though we didn’t see an attributed 2 ROAS in the ad platforms, the actual sales continued going up!
We ended up with (almost) 2 MILLION in new revenue. The sales continued pouring in, and even though our CPA was higher than before, we still managed to stay above 2 ROAS within the entire year with our blend of Meta & Google Ads campaigns.
On Meta, even with its recent limitations, we managed to stay close to the 2 ROAS target.
Advertising SaaS products may be more difficult than it was before, but with the right strategy, utilizing tracking measures that are still available to us, and with the right KPI to guide us, we can do a lot for your software business, too!