90% of SaaS Companies Struggle with Efficient Customer Acquisition

by | Feb 28, 2025

The biggest challenge for 90% of software companies isn’t “building a better product.” The biggest problem is getting new customers, revenue, and growth–reliably and efficiently.

The growth side of the business is what makes or breaks software companies in the long run.

Almost no SaaS founder or software CEO has ever told me they couldn’t build a great product with enough time and investment.

Building products is hard, of course. But it’s figuroutable.

Once you have a valuable-enough product to sell, the game is all about customer acquisition.

For many software companies, this is Sales or Marketing. Or both.

For other software companies, this is Product Virality, which is another way to say product-driven marketing and sales.

In the old days, business gurus used to say, “It’s all about Distribution.” How you find, engage, and sell new customers.

Most companies with sufficient products and services don’t grow forever. They get stuck and stop growing.

The continued growth game isn’t so figuroutable, apparently.

  • Great products aren’t enough if you can’t market and sell them well.
  • Expensive sales and marketing won’t work if your funding dries up and you have to become profitable.
  • Temporary tactics that work when you are small aren’t enough if they won’t work when you are bigger in a few years.

The fastest-growing software companies these days have have great products for their ICP — AND unique and powerful customer acquisition strategies.

Startups with useful products that can’t efficiently acquire happy customers won’t make it for long.

Software founders who want to exit for above-average valuations have to prove they have an efficient growth strategy. Or that their acquirer will do that for them.

Getting into the game requires a great product.

Winning the game is about reliably and efficiently acquiring customers and growing revenue. This is getting harder every month with “traditional” approaches that everyone is doing (with AI).

This is “find product-market fit before you scale.”

But SaaS founders need to start with a clear path to acquiring customers too.

Some savvy founders prove scalable customer demand before starting on their product, which is very efficient.

What do you think?

Greg Head posted this on LinkedIn on February 28, 2025.

Check out the comments and join the discussion on LinkedIn.

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