If you know how to go about calculating your customer acquisition costs and think that it’s possible to drive down your current customer acquisition cost, you’ve come to the right place.
How to decrease your customer acquisition costs:
Reward customers who refer new customers to your business:
One way to drive new traffic and customers to your business is to look to reward your loyal customers who choose to refer their friends, family members and colleagues to your business. Psychology shows that potential new customers are far more likely to trust in a business which they haven’t dealt with before, if they have heard glowing reviews about the business in question from a family member or friend whose opinion they trust. For example, you’ll find it far easier to acquire brand new customers who are willing and able to shop with your business through a referral system, than by advertising your business and its products and its services to random individuals on Facebook.
There are a few effective ways to go about rewarding customers who refer new customers to your business. For example, you may want to offer loyal customers who refer a friend to your business who goes ahead and makes a transaction, with a percentage discount off their next order. Which is a great strategy as not only will you acquire new customers but you’ll also increase your chances of retaining past customers and having them place brand new orders through your business’ website.
Make sure that your social media campaigns are targeted:
While it’s cheaper to pay for social media campaigns such as Facebook marketing campaigns which aren’t targeted, you’ll increase the number of new customers which your business attracts by paying for targeted social media marketing campaigns. For example, if your business sells fashion related items to teens and young adults, you may want to run targeted Facebook and Instagram marketing campaigns which specifically only target social media users who are between a set range of ages. Such as 15-35. By being more specific about the audience that you market your business to, you’ll greatly increase your chances of attracting a large volume of new customers to your business’ website.
Don’t be afraid to negotiate:
Another way to decrease your customer acquisition costs is to negotiate with any digital marketing firms that your business deals with. As an example, instead of accepting a set price for marketing services for a month which can save you money. Ask if you can get a percentage discount off your chosen services by agreeing to sign up to the same services for a longer period of time, such as for three months. As you’ll be surprised at how many marketing firms are willing and able to negotiate on their prices for loyal customers who are interested in doing long term business with their digital marketing firm.
Look for discounts:
It’s also a great idea to shop around and to look for discounts. For example, if Facebook offers a huge discount off targeted advertisements for a month, you may want to take advantage of this deal.
So if you want to decrease your business’ customer acquisition costs, in order to drive new customers to your business without spending a fortune, make sure to follow the tips listed above.