Marketing for Business Growth: Keeping your Customer Acquisition Cost in check
You’re not alone. It’s becoming more and more difficult to generate leads, turn those into customers, and grow your revenue. What is your Customer Acquisition Cost? It’s the amount of money you need to spend to generate a lead, and then turn that into a customer for your business. In the online world, it’s become even more difficult (and expensive!) to get noticed, get ahead, and get customers. On The Money Show with Bruce Whitfield, Pavlo Phitidis outlines your plan to hunt and fish online, so you can grow your customer base:
How C.A.C. has changed over time
When I started Aurik 15 years ago, marketing for business growth using online tools was easier and not as expensive as it is today. Getting ahead of your competitors online was simpler, but nowadays, your ability to reach the customers you want is limited only by your budget.
The competition is fiercer than ever Social media platforms have become monopolies, and the online world pits your small business against large corporations. Thanks to algorithms that are designed to sell advertising, you need to spend more money than ever before, to generate the customer leads you need. If you run a small florist and are looking to promote your work online, you’d be competing against the likes of NetFlorist or Interflora for search terms, results, and online attention. Bigger companies have bigger budgets to score a bigger slice of the online attention pie. What can you do, as a small business owner, to keep your C.A.C. in check? You’ll need to hunt and fish.
Know your customer
Being able to correctly target your online marketing efforts begins with knowing what problem you’re trying to solve for your customers. Thereafter, find out where your potential customers spend their time online, what kind of content attracts them, and what they’re currently experiencing in terms of having their problems solved. Once you know that, you’ll know where to begin hunting and fishing in the vast online sea of opportunity.
Hunting is spear fishing
Spear fishing is a targeted activity, during which you visit a specific location, and use specialised tools to attract and catch a particular species of fish. It’s the same when you’re hunting in the online world. You’ve identified the type of customer you’re looking to attract, you know where they spend their time, and you have learnt how they behave. Extending my earlier example of operating a florist, your potential customers are event planners, wedding venues, and similar service providers.
Fishing is trawling
Trawling isn’t about setting out with a big net and scooping up whatever fish that come your way. Instead, using lures that are designed to attract certain species of fish, trawling takes you into the sea of opportunity. Create a ‘lure’ by generating and sharing relatable content around your potential customers’ interests. If you’re a florist, you’ll consider creating content around weddings or events. You’ll trawl the seas where these potential customers ‘live’ – those are the social media platforms they’re already active on.
Assess your success
Boost your content to ensure that it gets seen by your potential customers. That may include creating sponsored/paid for posts on Facebook, Instagram, Twitter, or LinkedIn, or attaching it to a Google AdWords campaign. Thanks to your targeted approach, you’ll soon be able to assess your success. Engaging with potential customers is important too, as is being able to measure all your online marketing efforts. Use the tools available to you on online platforms to assess and refine your marketing for business growth activities.
Build a responsive website and regularly refresh it
Your lure should collect your potential customer, take them on a well-crafted journey, and lead them to your website. Use your website’s analytical tools and statistics to assess your customer’s journeys and refine your efforts accordingly.
Your C.A.C. today
You can no longer avoid spending money to attract customers online. By using the hunting and fishing tactics effectively, you’ll be able to target your efforts and ensure that a limited budget goes further. You’ll also develop new leads that result from your online efforts and communicate directly with your customers. It is vital to sustain your relationship with your customers by regularly engaging with them online. Through that, you’ll build a familiar relationship that makes you top of mind for your customer, and that’s how the sale happens.
Do you need help with your online marketing for business growth efforts? Aurik can assist. Let’s chat.