65% Increase in conversion rates | 12.3% decrease in CPA

Case Study: Reducing CPA and Boosting Conversion Rates for a B2B SaaS Company

Client Overview:
An established B2B SaaS company, approached Boston Growth Marketing (BGM) with a clear objective: to reduce their cost per acquisition (CPA) and improve their conversion rate across their paid media programs. Despite consistent monthly ad spend, their CPA was rising, and conversion rates were underperforming relative to industry standards.

BGM was brought on board in July 2023 to take over paid media management and execute a strategy to reverse these trends.

The Challenge

In the months leading up to July 2023, the client was experiencing rising CPAs and decreasing conversion rates, despite significant media spend:

  • April 2023: $263k spend, 1,548 conversions, $170 CPA, 0.37% conversion rate

  • May 2023: $283k spend, 1,639 conversions, $173 CPA, 0.35% conversion rate

  • June 2023: $294k spend, 1,587 conversions, $185 CPA, 0.23% conversion rate

While the company was attracting traffic, the cost to acquire each new lead was rising, and the low conversion rates indicated that traffic wasn’t translating into meaningful action.

Key Problems:

  1. High CPA: The average CPA in the three months before our engagement was $176 — above the client’s target range.

  2. Low Conversion Rates: The conversion rate for these months averaged 0.32%. The client thought they should be doing better.

BGM needed to implement a robust strategy that could stabilize and improve both metrics within 3 months, with a focus on optimizing existing spend rather than increasing it.

The Strategy

After auditing the account in July 2023, BGM identified several key areas for improvement, including ad targeting, landing page optimization, and bid management. Our plan focused on reducing inefficiencies and improving overall conversion performance through data-driven tactics.

1. Refined Audience Targeting

We tightened audience segmentation to focus on higher-quality prospects. By analyzing conversion data, we refined demographic and firmographic targeting, ensuring that ads were reaching decision-makers with higher intent.

2. Landing Page Optimization

A deep dive into user experience revealed that landing pages were not aligned with ad copy, leading to drop-offs. We revamped the design and messaging of key landing pages to create a smoother transition from ad to conversion. This included clearer CTAs, faster load times, and more relevant content for target personas.

3. Bid Strategy Adjustments

By implementing automated bidding strategies, we aimed to reduce wasted spend on low-performing segments. We used a maximize conversions bidding strategy to ensure the highest return on ad spend (ROAS) and fine-tuned daily budgets to avoid overspending on inefficient campaigns.

4. A/B Testing for Ad Creatives

We tested different ad creatives and messaging to identify which combinations resonated best with our target audience. Through A/B testing, we optimized the visuals, copy, and offers to improve engagement and click-through rates.

The Results

After BGM took over paid media management in July 2023, we saw significant improvements in both CPA and conversion rates over the following three months:

July 2023 (First month BGM took control)

  • $279k spend, 1,579 conversions, $177 CPA, 0.56% conversion rate
    Despite the CPA being slightly higher than the previous month, the conversion rate improved dramatically, showing that the changes we made were starting to pay off. This initial lift set the foundation for continued optimization.

August 2023

  • $329k spend, 1,882 conversions, $175 CPA, 0.57% conversion rate
    In August, we began seeing more stability in the CPA, while conversions increased significantly, indicating that our optimizations were generating more value from the spend. Despite the increase in media spend, the CPA remained stable, and conversion rates improved further. At this point, the client asked if we could decrease the CPA, rather than scaling conversions.

September 2023

  • $206k spend, 1,384 conversions, $149 CPA, 0.45% conversion rate
    In September, we reduced ad spend, focusing on the highest-performing channels. This led to a dramatic reduction in CPA—a 14.8% drop compared to July—and continued strong conversion rates. The improvements allowed us to generate almost the same number of conversions at a significantly lower cost.

Performance Summary

Comparing the three months before and after BGM took control:

  • CPA Reduced: From an average of $176 in April-June 2023 to $167 in July-September 2023—a 5% average reduction in CPA. Comparing September’s CPA to April’s CPA, BGM managed a 12.3% decrease in CPA.

  • Conversion Rate Improved: From an average of 0.32% to 0.53%, representing a 65% improvement in conversion efficiency.

  • Consistent Conversion Volume: Despite a reduction in spend in September, the client maintained a strong flow of leads while significantly reducing costs.

Key Takeaways

In just 3 months, through focused audience targeting, improved landing pages, and smarter bidding strategies, BGM was able to significantly reduce the CPA while increasing conversion rates for this B2B SaaS company. Our approach focused on maximizing the efficiency of existing ad spend.

If you’re an early-stage B2B tech startup looking to optimize your paid media efforts, we can help and your spend doesn’t have to be at the budget levels seen here. The principles and strategies we apply to larger SMB accounts work extremely well when scaling smaller budgets, too. Contact us today for more information on how we can help you lower your CPA and boost your conversions.