SPACE by krndby

How We Helped a Mass Text Messaging SaaS Company Cut Acquisition Costs by 50%

Jul 21, 2025

The Business

A B2B SaaS platform offering mass text messaging services for businesses and organizations across industries—from consultants and churches to e-commerce stores and educational institutions. Their product is built for reach, simplicity, and real-time engagement, and they had already scaled to thousands of users.

But as growth accelerated, so did inefficiencies.

The Challenge

When the company approached me, they were running a free trial–based acquisition model but were burning through budget due to:

  • High cost per acquisition (CPA) that made scaling unsustainable

  • Underperforming ad metrics, including:

    • CTR below 1%

    • Frequency creeping above 4.5

    • Bounce rates between 20–30%

    • Checkout rate drop from 35% to below 10%

    • Trial rates stuck between 7–9%

    • Purchase rate slipping below 0.5%

Despite having a functional funnel, the efficiency was breaking down. Their spend wasn’t driving the conversions it once did, and performance fatigue had set in.

My Approach

Step 1: Deep Audit of the Ad Account

I began with a complete audit—from macro-level campaign structure to individual ads. I looked at:

  • Asset-level performance

  • Audience overlaps

  • Budget allocation across funnel stages

  • Landing page behavior metrics (especially bounce and checkout drop-off)

  • Creative fatigue indicators and relevance scores

The goal was simple: identify where dollars were being wasted and where performance could be unlocked.

Step 2: Fixing Inefficiencies and Rebuilding for Scale

Based on the audit insights, I rolled out a focused improvement plan:

  • Eliminated wasteful spend on audiences with poor engagement or repeat exposure

  • Refined audience segmentation to reduce overlap and prevent frequency spikes

  • Rebuilt campaigns with clearer funnel stages—moving from generic targeting to structured cold, warm, and hot segments

  • Reallocated budget toward high-performing creatives and funnel stages that showed traction

Most importantly, I didn’t just "spend better"—I redesigned how we measured intent, optimized messaging, and sequenced creatives for conversion.

The Results

📉 50% Reduction in CPA (Within 3 Months)

By cutting waste and improving funnel clarity, the average cost to acquire a customer was halved. This gave the brand breathing room to reinvest in growth confidently.

💡 More Efficient Budget Allocation

Post-audit reallocation meant more spend went to converting audiences—not just clicks. Engagement quality improved, CTR lifted, and the checkout drop-off was reversed.

Conclusion

Scaling doesn’t always require more spend. Often, it requires more precision.

This project was a reminder that even in a performance-driven environment, accounts need regular recalibration. A few months of inefficiencies can quietly erode ROI—but a focused, insight-led reset can turn things around fast.

If your acquisition costs are creeping up and your funnel performance has plateaued, it might not be your offer—it might be your structure. And that’s fixable.