5 Ways to Reduce Customer Acquisition Costs
5 Ways to Reduce Customer Acquisition Costs

5 Ways to Reduce Customer Acquisition Costs

Customer acquisition costs (CAC) is the primary metric used to assess the profitability of your business. Countless new companies struggle to contain their CAC because they develop a marketing model that far too expensive and converts too little. There is no formula for all businesses to control these costs,Guest Posting but there are many ways in which you can optimize your customer acquisition strategies to increase sales and decrease CAC. Here are 5 ways you can reduce your CAC:

 Pareto Lawrence

Invest in Referral ProgramsWord of mouth is not only the most trusted form of advertisement, but it has shown to reduce CAC by 50 per cent! By capitalizing on existing customers, you stretch the initial CAC investment and create a consumer base that has a proven higher lifetime value (LTV).Uber founder Travis Kalanick stated that 95 per cent of riders heard of Uber through existing customers, which is how they were able to grow their business. According to a study by the Wharton Business School, 83 per cent of satisfied customers are willing to refer a friend, but only 29 per cent of them actually do. By shifting resources to referral services, you may be able to efficiently generate high quality leads that will reduce your overall CAC.Optimize OnboardingCreating awareness for your product is a routine undertaking, but profits come from nurturing and supporting existing leads to a sale or through end-to-end marketing.

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