You just canโt put a price on some things (like my Grandmaโs lemon pickle ๐ต)
While you pay a price to maintain and improve your business, itโs easy to forget that you pay for your customers as well. Your Customer Acquisition Cost (CAC) is simply how much money it costs to gain a customer. Of course, the goal is to do more than break even on this cost. Here are some ways on how to reduce Customer Acquisition Cost:
- ๐ช๐ถ๐๐ต ๐ฆ๐๐ข ๐ฎ๐ป๐ฑ ๐ฐ๐ผ๐ป๐๐ฒ๐ป๐ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด:
The beauty of SEO is that itโs a suitable channel for all marketing funnel stagesโfrom awareness to retention. People search on Google all the time.
Mixing paid efforts with organic efforts will yield better results, and it can help reduce your CAC. An effective SEO strategy will cover all the marketing funnel stages, while PPC is best used for someone ready to buy. If youโre with someone throughout their journey, they wonโt need as big a push from PPC to cross the finish line.
- ๐ช๐ถ๐๐ต ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป ๐ฅ๐ฎ๐๐ฒ ๐ข๐ฝ๐๐ถ๐บ๐ถ๐๐ฎ๐๐ถ๐ผ๐ป (๐๐ฅ๐ข):
CRO is the process of adjusting your website or app to convert a higher percentage of visitors. If you donโt optimize your website or app for conversions, itโs highly inefficientโeven if it attracts tons of visitors. CRO is arguably one of the most efficient ways to make you more money and lower your acquisition costs.
- ๐๐ฟ๐ฒ๐ฎ๐๐ฒ ๐ฎ ๐๐ผ๐น๐ถ๐ฑ ๐ฏ๐ฎ๐น๐ฎ๐ป๐ฐ๐ฒ ๐ฏ๐ฒ๐๐๐ฒ๐ฒ๐ป ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐ฎ๐ป๐ฑ ๐ฏ๐ฟ๐ฎ๐ป๐ฑ ๐ฏ๐๐ถ๐น๐ฑ๐ถ๐ป๐ด:
While you canโt really attribute brand-building activities to conversions, it plays a crucial role in converting visitors into customers. But that doesnโt happen overnight.
In fact, if youโre behind with brand building, it will actually increase your CAC in the short term (~1 year) because these activities donโt have an immediate effect on your sales. But it will pay off very well in the long run, including a lower CAC.
As a general rule of thumb, the ideal balance between marketing spend on sales uplift and brand building is roughly 40:60.
Itโs one of the most important marketing concepts to keep in mind.
---------------
Liked this content?
Please connect with me here Abhishek Sharma
While you pay a price to maintain and improve your business, itโs easy to forget that you pay for your customers as well. Your Customer Acquisition Cost (CAC) is simply how much money it costs to gain a customer. Of course, the goal is to do more than break even on this cost. Here are some ways on how to reduce Customer Acquisition Cost:
- ๐ช๐ถ๐๐ต ๐ฆ๐๐ข ๐ฎ๐ป๐ฑ ๐ฐ๐ผ๐ป๐๐ฒ๐ป๐ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด:
The beauty of SEO is that itโs a suitable channel for all marketing funnel stagesโfrom awareness to retention. People search on Google all the time.
Mixing paid efforts with organic efforts will yield better results, and it can help reduce your CAC. An effective SEO strategy will cover all the marketing funnel stages, while PPC is best used for someone ready to buy. If youโre with someone throughout their journey, they wonโt need as big a push from PPC to cross the finish line.
- ๐ช๐ถ๐๐ต ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป ๐ฅ๐ฎ๐๐ฒ ๐ข๐ฝ๐๐ถ๐บ๐ถ๐๐ฎ๐๐ถ๐ผ๐ป (๐๐ฅ๐ข):
CRO is the process of adjusting your website or app to convert a higher percentage of visitors. If you donโt optimize your website or app for conversions, itโs highly inefficientโeven if it attracts tons of visitors. CRO is arguably one of the most efficient ways to make you more money and lower your acquisition costs.
- ๐๐ฟ๐ฒ๐ฎ๐๐ฒ ๐ฎ ๐๐ผ๐น๐ถ๐ฑ ๐ฏ๐ฎ๐น๐ฎ๐ป๐ฐ๐ฒ ๐ฏ๐ฒ๐๐๐ฒ๐ฒ๐ป ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐ฎ๐ป๐ฑ ๐ฏ๐ฟ๐ฎ๐ป๐ฑ ๐ฏ๐๐ถ๐น๐ฑ๐ถ๐ป๐ด:
While you canโt really attribute brand-building activities to conversions, it plays a crucial role in converting visitors into customers. But that doesnโt happen overnight.
In fact, if youโre behind with brand building, it will actually increase your CAC in the short term (~1 year) because these activities donโt have an immediate effect on your sales. But it will pay off very well in the long run, including a lower CAC.
As a general rule of thumb, the ideal balance between marketing spend on sales uplift and brand building is roughly 40:60.
Itโs one of the most important marketing concepts to keep in mind.
---------------
Liked this content?
Please connect with me here Abhishek Sharma