FMP Helps SaaS Software Firm Break Revenue Plateau
and Position for Successful Acquisition
After making the transition from being an on-premise to a SaaS solutions provider, our client’s monthly recurring revenue had plateaued – they were seeking new ways to grow their sales pipeline, increase free trials of their solution, and build sustainable, scalable revenue growth.
Working with our SaaS-based client, Fusion Marketing Partners (FMP) leveraged our background in software marketing and SaaS product knowledge to quickly engage and discover of the customized strategy that would fill the pipeline and drive down the cost of customer acquisition. Fusion Marketing Partners designed and executed a complete marketing strategy that included content marketing (blogging, white papers, etc.), public relations, targeted web content (landing pages) enhanced with SEO (search engine optimization) and PPC (pay-per-click).
Explosive Growth in Revenue and Free Trials Contributes to Acquisition Offer
FMP’s applied strategy produced profound results:
- A 249 percent increase in new
Monthly Recurring Revenue (MRR)
- A 33 percent decrease in the
cost of customer acquisition
Since free trials were key to filling the top of our client’s sales funnel, we focused on strategies that drove up the number of free trials by 167 percent – while driving the cost of free trials down. Close time accelerated, with the average customer closing just three weeks after their free trial. Deal size increased by 39 percent. After a year, we could demonstrate that each dollar spent on marketing improvements resulted in two dollars of new revenue within six months.
Targeted content, refined strategy and carefully managed PPC (pay-per-click) campaigns had done more than boost revenue – they created a predicable and scalable growth scenario that consistently outperformed quarterly lead forecasts. This performance also attracted the attention of a major software firm, who made an unsolicited offer to acquire our client in 2011. Fusion Marketing Partners was retained to help the new company meet their marketing goals—educating customers, driving new trials and pinpointing the buyers they need to make the enterprise grow.
The Marketing and Sales Machine
The idea of a machine is to create momentum at every part of the process that leads to a predictable and consistent flow of revenue. At Fusion Marketing Partners, we refer to this as being “coin operated.” The business puts some coins (marketing activities) in at the front end of the marketing machine, follows a series of proven processes, and at the other end, and the result is corresponding revenue.
But is a Marketing and Sales Machine realistic? The answer for this client was absolutely yes! Consider some of the following changes that ocurred as the machine was implemented for their business model.
- ‘Coin Operated’: After 1 year of improvements, each $1 of marketing program spend resulted in $2 of new revenue within 12 months.
- Shorter Sales Cycles: The average sales duration (initial free trial to close) was less than 3 weeks.
- Scalable: Month-over-month increases in the quantity of prospects with a lower cost of customer acquisition.
- Increased Value: Improvements in deal size performance, with an average increase in deal size of 39%.
- Predictable: The Marketing and Sales Machine helps consistently predict and meet quarterly lead forecasts.