SAAS MARKETING GUIDE BY: JUSTIN TALERICO SaaS Marketing Concepts & Terms IDEAL CUSTOMER PROFILE Defining the ideal customer profile (ICP) is a more SaaS-specific way of defining the target audience. ICP is important in SaaS because of the recurring nature of revenue and high correlation between revenue retention and valuation. Acquiring ideal customers leads to revenue predictability and stability (lower churn), as well as capital-efficient growth (higher lifetime value (LTV)). SAAS MARKETING OBJECTIVE The objective of SaaS marketing is to grow recurring revenue by acquiring new, qualified customers. Qualified is defined as ICP (ideal customer profile) to maximize renewal and up-sell potential (lifetime value (LTV) and expansion revenue), and minimize churn. SAAS MARKETING GOAL The goal is to accomplish the objective while spending less than 12 months worth of new MRR to acquire each new customer — ideally 6-9 months. Spend in this case is defined as all-in sales and marketing expense — inclusive of wages, variable comp, hard spend (media, events, services), technology, and any other related costs (customer acquisition costs (CAC)). SAAS MARKETING PROCESS SaaS markets and products move faster than traditional marketing plans and teams. An agile marketing process maximizes productivity, flexibility, iterative improvement, and market responsiveness. 7 Execute Better. Grow Faster.