Do you know that 44% of businesses prioritize customer acquisition over customer retention? Customer acquisition strategies bring in new clients down the marketing funnel and culminate in a purchase decision.
On the flip side, 18% of businesses focus more on customer retention than acquisition. Customer retention strategies turn the new customer into repeat buyers. Favorable retention metrics indicate that your products are pleasing to your customers.
Savvy businesses like Notion, however, know that both metrics are critical for business growth and sustainability. Notion is a global team collaboration SaaS company that offers tiered subscription plans to businesses.
It has a range of freemium and enterprise plans that serve over 20 million active users worldwide. Like any fast-growing SaaS business, Notion attracts new customers to its business via a wide range of short-term windows through native ad networks. Additionally, it has a long conversion funnel that includes freemium platform accounts.
Marketers at Notion, however, understand that acquisition campaigns often bear vanity metrics. For example, acquisition metrics may offer easy and quick ratings of success, offering business instant gratification without the subsequent promise of lifetime value (LTV).
Voyantis LTV/CAC Optimization Benefits
Subscription fees and repeat business is the SaaS business’s lifeline. At least 65% of SaaS business revenue comes from existing customers. Then, a 5% surge in retention rates can increase revenue by 95%.
Consequently, SaaS businesses that spend most of their efforts on acquisition could hamper growth due to high customer acquisition costs or CAC. For example, data shows that the bootstrapped SaaS business spends $0.28 and $0.94 in customer acquisition costs to earn $1 in annual recurring revenue.
Consequently, a business that charges $2000 subscription costs will fork over $560 to $1880 of those earnings to gain a new customer. Notion has therefore built a sustainable customer acquisition process that distributes its marketing capital more effectively.
The Notion team has teamed up with the Voyantis platform to build a team-level prediction model, forecasting each team’s lifetime value within 180 days.
Their new strategy scores a competitive cost-per-team on their Google Ads search campaigns by taking user-level lifetime value predictive models and ‘signal optimization’ at the core of the customer acquisition process.
Voyantis is an AI platform offering subscription companies right-on predictions on their customers' future LTV shortly after acquisition. Voyantis's tools can instantly evaluate the effectiveness of SaaS companies' media spend and give a clear picture of Notion's customer acquisition costs.
Moreso, Voyantis's signal optimization tool helps Notion acquire its customers based on their future lifetime value. Voyantis's AI predictions give insight into customer future value and propensity, ensuring that Notion marketers place profitable prospects at the heart of their acquisition process.
Voyantis has helped Notion acquire more teams on Google Ads, lowering its customer activation costs and increasing its lifetime value by 21%. As a result, Notion's return on advertising spend (ROAS) has a six-month prediction rise of 38%.
Over and above that, Voyantis has optimized customer acquisition at Notion, its tools bearing fruits such as a -32% cost per activated team and a 35% increase in its team activation rate amongst groups with 3+ users.
Finally, Voyantis has assisted Notion in successfully activating value-based bidding, which, when combined with predictive bidding, is a powerful strategy for Google advertisers.
"It wasn't just easy to work with Voyantis' signal optimization solution. It generated great results too. We saw a 21% increase in team activation rate and a 38% predicted 6-month increase in ROAS. Here at Notion, we’re excited to continue our partnership with Voyantis as we expand our growth strategy.” says the Notion team of their partnership with Voyantis.