Customer acquisition cost (CAC) refers to the cost associated with convincing a customer to buy a product/service. It includes the cost of the product and the cost incurred on research and marketing efforts as well. It holds a significant role in calculating the value of the customer to the company as well as the ROI of acquisition. It’s imperative that lower the cost, greater the success of the business. Here are some amazing tips to effectively reduce customer acquisition cost.
Leverage buyer personas:
When it comes to marketing the products, the business operators should be clear as to who the target audience is. This can be done easily with the help of buyer personas. These personas can then be leveraged to market the products and services to the intended groups, thus eliminating any unnecessary customer acquisition costs.
Boost your conversions:
Once the target audience has been identified and buyer personas created, the next step should be employing the best strategies to boost the conversions. Some of the most effective strategies include focusing on the copy, CTA layout and design, testimonials and more.
Make the most of the referral marketing:
Referral marketing is yet another way of cutting down on customer acquisition costs. All you need to do is, get each of your customers to refer their friend. As a matter of fact, referral marketing can reduce your customer acquisition costs to half the cost.
Invest in marketing automation tools:
Powerful marketing automation tools can effectively fuel up your marketing efforts. You can leverage these tools to automate processes like lead generation, email targeting and more. Since these tools reduce human intervention so the errors are reduced to zero and customer acquisition efforts are boosted to an entirely new level.
Incentivize your most loyal customers:
Firstly you need to know who your most loyal customers are. They are not the ones who just like all your business pages or videos that you share. The customers who love your brand and refer your brand to their knowns and are more than interested in endorsing your brand whenever possible are the ones. They are a source of WOM, the most powerful marketing tool today. Once identified, delight them by acknowledging their efforts and providing them freebies and VIP stuff.
Most importantly, it’s about the customer retention efforts that can help reduce customer churn and effectively help cut down on customer acquisition cost.
