We all want to be able get new customers as quickly as possible with as little investment as possible. Unfortunately, such optimism is rarely realized.https://socialmediaweek.org/blog/2021/02/how-to-gain-new-customers-and-reduce-the-cost-of-acquisition/?preview=true
Customer Acquisition Cost (CAC), is often referred to as the startup killer. New entrepreneurs often have an unfounded optimism in whatever they’re offering. They often underestimate the cost of acquiring a customer.
If you’ve been in business for any length of time, you know that acquiring new customers can be seven times more costly than selling to existing customers. It can cost you anywhere from $7 to $395 depending on your industry to acquire a new client. (*((
)Image SourceSounds discouraging, right?
Yes, customer acquisition can be difficult. But, the real devil’s in the details here. Statistics that average many of the results are a large part of what we know.
In other words, many companies are not doing customer acquisition right. Here are some tips to help you decrease your CAC and improve client satisfaction.
Follow the Customer Onboarding Process
Your sales and marketing might not be aligned. Your customer success team may end up dumping all the information on them at once. You might not have a repeatable process.
There’s just too much that can go wrong with client onboarding which can drive up your acquisition cost.
This will allow you to reduce customer acquisition costs and increase customer retention. You can help your customers get maximum value from your product. better customer onboarding workflowA good onboarding process should include —
It is easy to register for an account
- A simple, but effective, welcome message.
- Reminders for clients who haven’t logged in a while.
- This guide will walk you through the process of setting up your product.
- Help clients make the most of your product by creating educational material
- Milestones are set for each task the client completes in the onboarding process.
- Support after-sales is excellent
If necessary, you can even create customized solutions for clients. Your client shouldn’t have to wait to find out what to do next. Don’t Forget Email
Many brands fail to acknowledge email in their quest for social media stardom. Big mistake. Inboxes are intimate, not like the cluttered clutter of a social media account.(*((
Brian Greenberg, CEO and President of Image Source, “The power of email is that it goes directly into a consumer’s inbox. The email stays there. Most people don’t delete things out of their inbox, so if they need to pull up a thread you’ve had together or want to find your latest offer, all they have to do is search their inbox real quick. I’ve had people contact me at True Blue Life Insurance using a seven-month-old email.”
Some ways you can use email for customer acquisition — True Blue Life Insurance
Rely on the principle of reciprocity In return for their email, offer your prospects something completely free.
Cold emailing is a great option. A good cold email is personal and solves a problem.
- After your first messages, send follow-up messages.
- Don’t spam, though. Really, don’t.
- Email continues to gain popularity. Consider adding them to your marketing arsenal. If you’re strapped for time, then you can use a service like
This company offers high-converting, tested email templates.
Send giftsDesignmodoGifts have an advantage over other promotional methods — they forge a deeper emotional connection. Customers who have such a strong connection with a brand will be more loyal.
than those that don’t.
Today, electronic gift items are the preferred choice of most marketers. Popular giftable items include redeemable coupons, gift certificates, feature upgrades, and gift cards. 306% higher LTVFor example:
, a new Fintech service for helping parents invest in their children’s future adds $15 to every new account opened. This is a great strategy to use for SaaS companies. (*((
That said, don’t write-off the humble old direct mail gifts just yet. A direct mail gift item is the best. They’re memorable and are more visible than their digital peers. Image SourceChatbots
No one page on your website can answer all of your prospect’s questions. And, most of them don’t have the time to find what they are looking for anyway.
Chatbots are a great help in this situation. Now, they can’t replace a human and have had us lol with their answers at times. Chatbots have made great strides in the past few years.
They can answer most questions and direct users to the right resources. They also don’t take breaks and are present 24/7.
Their acceptance rate is also increasing. For example,
In 2019, chatbots were more popular than in 2018. 74% of users would rather use chatbots in 2019 than in 2018.
They have also been extremely successful.
It uses a highly customized chatbot which not only allows for chat but also provides links to FAQs directly in the chatbox. (*((twice as many consumers)
Go localJoyOrganicsMany companies mistakenly believe that customer acquisition via the internet is all about getting big. The world’s their oyster, after all.
But, don’t forget about your local market space either. Your local market can be more familiar with your product than those who live half a world away. Image SourceAdditionally,
Restaurants, dry cleaners, and home repair are just a few examples.
Local SEO is a great way to reduce customer acquisition costs. Firstly, clients can see your office in the city before you open it. Second, it allows you to build stronger relationships with people that you actually meet. You can also build a stronger brand by building a local following (think KFC).
Customer acquisition gets hard and expensive when you’re more concerned with the sale than with helping customers. All of the above mentioned methods work best when you give as much value as possible.
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