Gainsight Glossary

SaaS Customer Acquisition Cost

Customer acquisition costs (CAC) and analyzing them is crucial to SaaS because the model depends on the customer lifetime value (CLV). SaaS companies devote a significant amount of time and money on acquiring new customers before they see the full value and return on their investment.

However, once you acquire the customer, few tools help you manage and optimize customer retention or what you can call customer success. Gainsight pro-actively focuses on customer retention knowing that the cost of retaining an existing customer is cheaper than acquiring new ones rather than focusing on customer acquisition thus focusing on customer success.

Integrating Gainsight’s Customer Success Management solution with CRM systems and using predictive analytics, workflow and data visualization technologies you get 360-degree view of your customers.

You gain crucial insights such as:

  • Where customers are coming from

  • How much revenue you are gaining from a customer

  • How to get more for your company to recover CAC and actually begin to profit

  • Which are the areas that lead to customer churn

All these insights can help you take proactive steps to mitigate and reverse the risks, identify up-sell opportunities based on their usage and manage retention. Optimize your SaaS-based customer acquisition cost with Gainsight.

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