The Scenario
A business and accounting software company was facing difficulties growing its customer base while preserving cash flow. How could they scale their business in a saturated market while maintaining a conservative target months to breakeven?
Our Approach
The Working Planet approach starts from the business model. Before expanding any campaigns, we mapped out subscription revenue and churn rates by audience to calculate the acquisition cost targets needed to maintain the client’s desired payback period. Building custom financial models enables us to test and scale profitably, prioritizing the largest opportunities for improvement and expansion.
A key tool in the growth of this client has been our development of a lead valuation model to take advantage of value-based bidding in Google and MSN search. This granular approach to bidding lets us pay the higher traffic costs necessary to capture high value leads, while maintaining efficiency and supplementing volume through acquiring lower value leads at a lower cost.
The Results
Working Planet has led this SaaS company to find growth without sacrificing their profitability. Over the last 4 years, our client has nearly quadrupled customer volume and monthly recurring revenue, proving that maintaining cash flow is possible while scaling volume - by keeping our marketing strategies centered on the financial model.
