The cost of acquiring a new customer is not offset by the value they bring to your business. Money is lost.
This metric will show the balance, positive or negative, that an investment had. Yes! Finding a new customer is an investment, and the ROI must be evaluat like any other investment. So:
ROI = Revenue generat – (investment + operating cost)
In the operating cost we include the acquisition cost.
How to achieve a positive balance
The goal of always keeping the cost of acquiring new clients low should be a mandate in any agency. Here are some suggestions of what you can do as a manager to increase the Lifetime Value and decrease the Cost of Acquisition (green arrows):
how-to-get-a-positive-cac-balance
To increase Lifetime Value:
Keep your client active and satisfi so physician database they continue to bill you.
Look for clients who spend on a recurring basis (rather than one-off projects).
Sell other services to your current clients.
Readjust your values according to the market.
Strategies to ruce customer acquisition costs
1. Segment your audience
For marketing campaigns to be more effective, it is important that your target audience is well segment. To do this, the company can use tools such as the ideal customer profile and personas.
This is beneficial because, knowing the type of customer that matters to the company, it will be possible to concentrate efforts on attracting these people or businesses, without wasting energy on those that do not meet these prerequisites.
Learn more: Target audience, ideal customer persona and buyer persona: what’s the difference ?
2. Invest in Relationship Marketing
Once you have attract that ideal customer profile, you ne to each profile must have a photo to avoid appearing fake them close to you to keep them around for longer. One strategy that helps ruce customer acquisition costs is Relationship Marketing, which aims to turn customers into true fans of the company.
This can be done through email marketing strategies, social networks, loyalty programs and other channels.
Learn more: Relationship marketing: everything you ne to know to build customer loyalty
3. Improve website conversions
Are you taking advantage of all the conversion possibilities fans data offer by your website?
Generating traffic alone isn’t enough, you ne to capture contact information from these visitors. And of course, qualify these leads. These qualifi contacts are closer to the funnel and by quickly converting into customers, they will help ruce CAC.