You already know how costly and laborious it is to acquire new customers . Therefore, monitoring metrics such as CAC (Customer Acquisition Cost) is essential to know how to optimize and reduce this cost.
What is CAC?
CAC represents the total sum of marketing and sales costs to acquire a customer — one of the most important metrics ! After all, without customers, there is no revenue, and without revenue, there is no business .
Calculating the Customer greece telegram data Acquisition Cost, therefore, is essential to analyze whether revenue is being generated above it , since there is a very close relationship between the CAC and the company’s profitability.
How to reduce CAC?
Check out the best strategies to reduce your business’s CAC !
Improve Your Website Conversions
You can generate a ton of traffic to your business website . But the question is: how many of those visitors are actually positive workplace relations means converting? Unqualified traffic doesn’t convert, and without conversions , you’re throwing money down the drain!
Monitoring, testing, and improving your conversion rates is the surest way to lower your Customer Acquisition Cost . Why? The more people you can move down the sales funnel and convert into customers, the lower your CAC will be . Sounds obvious? It is! However, not everyone can do it right.
To perform this task, you can use a simple spreadsheet or use the one we made for you for free:
And a great way to measure your conversion rates is by implementing A/B testing on your website. For example, you can test different versions of calls to action (CTA) , buttons, colors, layout, images, and many other elements.
Use the 80/20 rule
Also known as the Pareto whatsapp database brazil Principle, the 80/20 rule theorizes that 20% of your efforts are responsible for producing 80% of your results. In business, this can be applied in many ways! For example: 20% of your marketing efforts generate 80% of your revenue.
So, analyze the channels for acquiring new customers: where did the customers who generate most of your revenue come from? Organic search ? Native advertising? Find out and optimize your results !
Implement Ideal Customer Profiles and Personas
When it comes to marketing your product or service, don’t take a shot in the dark! Marketing efforts need to be clear about who they’re targeting.
To do this, you can use Pareto here again: do 20% of your customers generate 80% of your revenue? In other words: use what you know about your 20% most loyal customers and use that knowledge to attract and retain a new audience !
Finding out who your ideal customer is and developing this persona is very important, because it is this persona that will direct your business’s entire marketing and content strategy.
Just don’t confuse these techniques with defining your target audience , which is used to segment your niche! A persona is much more specific: it’s a semi-fictional representation of your ideal customer with their name, profession, purchasing habits, and other data developed through research.