Save Your Startup: By Reducing Per Customer Acquisition Cost

By: |Published on: Sep 30, 2019|Categories: Business Advice| 0 comments

Reduce customer acquisition cost

Is your business or startup giving you satisfactory sales and profit? Are you spending too much on your strategies? Is your cost per acquisition very high! Do all of your efforts pay you off? 

If the answer to any of the above question is no, then my friend you need to change one or many other things you are doing which is wrong.

First off all you get to check out your mistakes, where are you going wrong. If your spending cost is more than your profits you need to lower them down. Generally, people spend a large amount of money on customer acquisition cost.

Customer Acquisition Cost is the amount of money one businessman spends on the customers for convincing them to buy your product. It comprises of all the research work done, advertising on all platforms either online or offline and all the marketing expenditures. Being an important tool and paying an important role for business the customer acquisition strategy must be planned carefully keeping in mind the budget.

As we all know customer acquisition cost, in turn, gives you sales from a potential customer, the customer acquisition cost increases as the business or startup grows. The customer acquisition strategies will be fruitful if they help you in gaining new customers, or persuading them to buy your product. It acts as a link between the customer and the advertising department.

In order to make your customer acquisition cost minimum all you need to do is to follow up all of your past surveys, research and make your new strategies keeping in mind the results. You can give up the ways which are not giving you sales and focus more on the ones which are increasing them. Now, I am telling you some great hacks and tips for making customer acquisition strategy and lowering down your customer acquisition cost.

1. Define Your Target

Sometimes what we do is without having any knowledge about to whom we are catering we spend endlessly in all the mediums. You need to stop this as it might take a large portion of your profit. Now, what all you are suggested to do is after lowering down your customer acquisition cost you need to focus on the medium which is majorly used by your target audience and filter out all others who are not buying products from you.
The easiest and simplest way is to flesh out personas of your target audience. You need to know who your ideal customer is, what he wants and what he likes and dislikes about your product, rather than wasting your resources, time and efforts looking out for the ones who are not using your product.

Create personas of buyers and it will help you discover who is going to buy the product from you and will be loyal and very much engaged with you. Multiple personas will help you more rather than creating a single one.

2. Use Retargeting

Here’s a trick where your viewer will definitely have the impact of your company in his mind and would definitely come back to your site. So what you need to do is retargeting your visitors by tabbing the visitors who lurk on your websites but do not make any purchases.
What it does is, it display your add multiple times in front of them when they are surfing the net and what happens is psychologically the attractive adds leave an impact in their mind with which they come back on your website in order to make purchases.

Here your window shoppers have turned up to paying customers and have increased your sales. In order to increase more sales, what you can do is by showing them more of the product they viewed. You can categorize your product and retarget them.

Also, read: 7 things to know before creating a business budget

3. Employ Relentlessly Testing

Testing is the report card which shows you where you are excelling in sales and where you need to tighten up your belt. Without testing you cannot lower down your customer acquisition cost. In order to from where you are getting greater number of customers you need to examine each element and then copy them.
I cannot provide you the list about the elements you should check as the list is endless, but you can definitely try changing your content, colour schemes and placement of your images. Sometimes it might work with just a small change all you need to do is test, change, and repeat.

4. Keep a Check on Your Revenue

The revenue you spend in marketing definitely brings customers to you. Marketing is the method via which you get to attract customers and increase your sales.

It is said that if you increase your customer acquisition cost in an appropriate manner there will be an increase in your sales too.

5. Sharpen Your USP

USP is the Unique Selling Point. Nowadays, if you are not different from the ordinary you will not get sales. You need to have a unique selling point with which you can get your customers attracted towards you.

USP gives you some extra marks and make your product better from that of your competitors. Hence, you need to decide your USP and broadcast it amongst all of your employs and potential customers. Once you are working on your USP it will gradually lower down your Customer acquisition cost increasing your sales.

Here, were some of the Customer acquisition strategies to decrease your customer acquisition cost which is proven to some extent. Many of the renowned companies have been implementing them from day 1. You might have experienced at least one of them as a customer. So all you need to do is to analyze, change and test. They are the key rules for any startup or your business which would take you to more and more of sales and profit. A lower CAC helps you to have more profit and great revenue. It is a very essential factor for someone who is looking out for more profit year after year. Business is all about balancing all the elements.

Conclusion

You have to focus on all these 5 points because every point will help to reduce the cost per acquisition and lower CPA will lead to high profits and revenue. But keep in mind that will take some time to see the results so you have to wait for the positive results.

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