No matter what kind of business you run, the key to success is new customer acquisition. Acquiring new customers is the life-blood of your business. It’s not enough though to acquire new customers.
“He who gets the customers cheapest wins”
No matter what kind of business you run, the key to success is new customer acquisition. Acquiring new customers is the life-blood of your business. It’s not enough though to acquire new customers. Your new customers cost money so you’ve got to find ways to do it better and cheaper. For every dollar you save on acquiring new customers you can put it back into acquiring another customer. That means as you save money on acquisition costs you increase your market reach. The more reach you have the more damage you do to your competition too. This is how you go about winning retail. If you are trying to win in your industry – drive down customer acquisition costs.
What are some ways to drive down costs?
- Leads + Conversions – In driving down costs it’s important to understand where the cost is coming from. There are 2 parts to this equation. The first is generating site visitors or leads. The second part is converting those site visitors into purchases.
- Lead Cost – Creating lower cost leads is an important part of minimizing acquisition costs. You can minimize lead costs by increasing the quality of the leads and reducing spending on low quality lead sources. The other is finding content marketing opportunities to create organic leads that can be scaled much cheaper than paid, advertising based visits.
- Conversion Rate Optimization – Once a visitor comes to your site or owned property it’s time to convert them into a customer. Using site testing to determine what’s working and what can be improved is the easiest way to turn more visitors into customers. The average ecommerce site only converts 1-3% of it’s visitors into customers. That means you are working hard to drive 97-99% of your traffic to your site just for them to exit without a purchase. That’s unacceptable and can be fixed.