How to Reduce Customer Acquisition Cost: 5 Strategies to Put into Practice

You probably already know how many new clients you acquired last month. And by looking at spreadsheets or financial management software , you can also quickly find out how much you earned from those clients.

But how much did it cost to win over these customers? Do you know?

Customer Acquisition Cost (CAC) is a performance indicator that refers to the amount, on average, that a company needs to invest in its marketing strategies to acquire a new customer.

Ideally, a company should be able to keep its CAC as low as possible. But how can this be achieved?

Check out these five suggestions for lowering client acquisition expenses and raising your company's profitability as you read on:

1. Define your buyer persona
2. Invest in content marketing
3. Make your current customers promote your brand
4. Keep marketing and sales departments aligned
5. Set your goals

05 Ways to Lower the Cost of Customer Acquisition

Reducing the cost of acquiring new customers requires extreme caution.

Why?

Because if this cost is reduced excessively, it can affect the effectiveness of customer acquisition, reducing the company's profitability.

Therefore, the measures to reduce customer acquisition costs that we have highlighted take this into account. Analyze each one of them and define which ones are the most suitable for your company.

1. Define your buyer persona

The first tip on how to reduce customer acquisition costs is to define who your buyer personas are . In other words, what is the ideal customer profile that you want to attract to your business?

It is by defining your personas that it will be possible to outline more assertive marketing and sales strategies.

To do this, collect demographic and behavioral data about the audience you want to reach. Try to identify the main pain points, needs, motivations and expectations of your personas.

A very useful tool that will allow you to get to know your audience better and build buyer personas is digital surveys. You can also use CRM software; this type of system is a good source of data on your prospects, leads and customers.

2. Invest in content marketing

Content marketing is a relatively cheaper strategy for attracting new business, and it is also easier to scale. It consists of producing relevant content for your buyer personas on topics related to the product or service that your company sells .

Content marketing aims to generate more leads, nurture them, and help them move through the sales funnel.

To do this, you can create a blog for your company and publish articles that clarify visitors' doubts.

Produce rich content, such as e-books and webinars, and offer them to visitors in exchange for some registration data , such as name, email and phone number. From there, you will begin to build a relationship with these leads.

Be sure to use SEO (Search Engine Optimization) techniques so that your blog is well positioned on search engines.

3. Make your current customers promote your brand

Another strategy for reducing customer acquisition costs is to turn your current customers into promoters of your brand and bring new business opportunities.

Customers might be encouraged to recommend your goods or services.  Offering discounts for each referral that leads to a new sale is one way to achieve this, for instance.

One company that does this very well is food Panda. You can earn discount coupons whenever other people place orders using your promotional code.

In other words, you invest little by offering these advantages and have a great potential return.

4. Keep marketing and sales departments aligned

There is no way to reduce customer acquisition costs if there is no alignment between the marketing and sales sectors, known as smarketing .

There is no point in developing excellent marketing strategies if the sales team is not prepared to convert qualified leads and ruin everything.

Therefore, the discourses between these departments need to be perfectly aligned . Only then will it be possible to convey coherence and security to the lead and convince them to close the deal.

5. Set your goals

Finally, it's important that you set goals for what your ideal CAC should be for a given campaign or for a specific period.

Use measurements and indicators like return on investment (ROI) and average ticket to do this.  In this manner, you will be able to assess how well your strategies are working and hold your staff to higher standards.