Let onboarding process tools do the hard work for you!
Let’s talk about customer acquisition costs, which can be a hidden thorn in the side of any business. It would be nice, of course, if customers would simply flock to your business and buy – but things rarely go so smoothly.
Customer acquisition costs have rightly been called a startup killer, but along with the ability to monetize those customers, they are a key component of any successful business model. If your business is strictly web-based, then you have the benefit of advanced technologies working in your favor: these two concepts are easy to measure. Despite that, there is value in looking at these metrics for all businesses, not just those anchored online.
Balance your business model
One major problem with business acquisition costs comes when those costs are out of alignment with the lifetime value of the customer. When that happens, you can be looking at a complete business failure situation.
A better-balanced business model would show that the cost to acquire a customer is lower, or much lower, than their lifetime customer value — their monetization potential.
As many in the field have noted, one primary cause of this unbalanced scenario comes about when the business owner is far too optimistic in her product — in other words, when there is a strong belief that people will simply not be able to resist the urge to buy your stuff.
While the business world is full of great startup ideas, too many fail to factor into the cost of their operations — or even the viability of those operations — how much it costs to acquire customers.
No matter what stage your business is in, automation can cut your customer acquisition costs
Luckily, this is not a new struggle, and plenty have marked out routes for you to follow. The key for your particular business will be to find the strategy that works for you and operationalize it successfully. Here are some strategic ways to cut down your customer acquisition costs:
- Automate more timely emails: Automated emails can integrate with your website dashboard so you can see in real-time how your campaigns are playing out. Look for a tool that lets you send targeted messages to customers based on how they interact with your business.
- Use real-time campaign simulators: Minimize risk by automatically evaluating your campaigns before you run them, and use real-time metrics and analysis to shape ongoing campaigns based on data.
- Use chatbots: Marketing automation is not just about emails. Chatbots can automate some of the more repetitive conversations you have on platforms like Facebook Messenger and texting. New templates mean bots can be built in minutes, and data from the chats can be synched to your CRM.
- Use advanced website tracking to send the right email: Website tracking can identify customers interested in a specific product or service, and that customer intelligence can be used to create targeted, automated emails.
- Reduce cart abandonment: Multi-stage campaigns and customer incentives can be sent automatically from your website’s backend to customers with abandoned carts.
This list is just an introduction to reducing customer acquisition costs. Many of these tactics can be easily implemented, but don’t discount the value of a professional consultant like Canyon Crest Creative who can guide you through the process and suggest the most rewarding avenues to pursue which meet your goals and brand.
Keywords: customer acquisition costs, lifetime customer value, marketing automation[/vc_column_text][/vc_column][/vc_row]