Your CAC (Customer Acquisition Cost) keeps rising while your LTV (Lifetime Value) stays flat or even decreases.
Most of your marketing budget goes to paid ads that bring one-time trial users who never convert to paid plans.
Your KPIs were focused on trial signups and activation rates.
You're stuck in a cycle of high churn and expensive customer acquisition.
The major issue? You're attracting users who aren't ready to commit to a paid SaaS solution, and your trial-to-paid conversion rates are disappointing. Your sales team spends time on unqualified leads who downloaded your software out of curiosity rather than genuine need.
Sounds familiar? You're not alone. Many SaaS companies fall into the trap of optimizing for vanity metrics like trial signups instead of focusing on sustainable, profitable growth. This results in high burn rates and unsustainable unit economics that VCs and stakeholders hate to see.
Most of your prospects aren't actively searching for a new SaaS solution right now. They're either satisfied with their current tools or unaware that better alternatives exist. This group needs education about the inefficiencies in their current processes and how your SaaS solution can solve their pain points more effectively.
Demand Generation for SaaS means creating awareness around the problems your software solves and positioning your solution as the obvious choice. You help prospects understand the ROI and efficiency gains they'll get from switching to your platform. The goal is to create product-qualified leads: prospects who have experienced your product's value firsthand and are ready to upgrade to a paid plan.
Meanwhile, about 3% of your market is actively evaluating SaaS solutions in your category right now. Your marketing efforts here focus on Demand Capture: being visible during their evaluation process through comparison content, case studies, and competitive differentiation that convinces them to choose your platform over alternatives.
