The amount spent on digital advertising globally is still increasing. Digital advertisements are now more expensive per unit. Just imagining it makes you value your current customers more.
Writing for Brainyard, Kathleen Garvin says it is important to note that upselling and cross-selling are frequently less expensive methods to increase revenue.
It costs money to acquire a new customer, but you shouldn’t overspend on each one or your company’s finances will suffer. Furthermore, you don’t want to waste too much time pursuing customers who are just going to make one purchase before leaving. Therefore, you must decide who your ideal clients are and what it will cost to attract them.
Garvin proposes these six ways to be smarter about the costs of acquiring customers.
1. By acquisition channel, segment
Create a more precise financial model for each segment by grouping customers before figuring out their CAC (computed as total sales and marketing costs, divided by the number of new customers) and LTV (lifetime value, computed as average customer spend per interval multiplied by customer lifespan, and then less the sum of the costs of product of service and the CAC) . With that in hand, you can increase your investment in consumer channels that generate higher-value customers.
2. Regularly review your CAC and make necessary adjustments
The cost of advertising varies on some channels over time. It is crucial to regularly review your CAC and make adjustments as necessary.
3. Inform your client
Use any available medium, whether it’s a long-form blog post, a video, an email, or a social media post, to help your ideal customer understand your product.
4. Make it personal
To target them more precisely and reduce your CAC, it is advised that you get to know your ideal customer well. Smaller companies might be frantically trying to gain customers and regain lost ground. However, it won’t be time or money well spent if you aren’t carefully identifying and cultivating your ideal customer. Spend a lot of time creating your customer experience strategy and outlining your buyer personas and their paths to purchase to connect with your ideal user.
5. Experiment with popular social media channels
Every year, it seems, a new platform or app is released. It’s also worthwhile to consider how you can use these channels to draw customers, even though you don’t need to maintain an active presence on each one. If your ideal customer visits these websites,
6. Consider influencer marketing
Influencers can assist you in promoting your product through social media posts or videos because of their shared audience. You can find the best influencer for your brand and price range using a variety of tools. Others frequently advertise your goods in return for a cut of any sales generated by their network. You can also collaborate with micro-influencers, who typically have a more modest but intensely loyal fan base. To increase your company’s exposure to potential customers or to re-engage current ones, partnering with a well-known influencer can yield a respectable return on investment.