As you requested, the beaten funnels of sales 🤓
If there is nothing new here, say about it in the comments, if something new is learned, share the post.
A Customer Acquisition strategy is a process of attracting new clients to your business.
The purpose of the process is to create a systematic, sustainable strategy that includes new trends and changes.
That allows:
- 💰earn money, cover expenses, pay employees, reinvest in growth;
- 😇 show proof of work for investors, partners, etc.
The ability to systematically attract and convert people to new clients makes companies healthy and developing, and investors are happy.
The difference between lead generation and customer acquisition.
Graphic display of customer journey through stages of a purchasing (decision-making) process is the same as sales funnel and customer funnel.
The buyer moves from a top to a bottom through the stages:
⬇️ awareness about your brand (here comes lead generation);
⬇️ interest in your product/service is on the list for consideration;
⬇️ decision about the purchase (action) = become a paid customer.
At the same time, customer acquisition refers to the funnel as a whole.
A metric is Customer Acquisition Cost (CAC).
Client acquisition costs (CAC) are costs associated with attracting a new client to your business, such as marketing, events, and advertising. It is calculated based on a specific campaign or time frame.
CAC shows the real value of your marketing efforts and allows you to measure your ROI, this measure that is set by CEOs, managers and investors alike.
When I promoted Ermenegildo Zegna, Lora Piano, Gucci, etc. for luxury chain Babochka in Russia – my CAC ~4 EUR, and the order ~500 EUR – it’s a very cool result, if you know who can make better of it – introduce me to them please!
Formula CAC = MC / CA
CAC – the cost of attracting clients;
MC – marketing expenses;
CA – acquired customers/sales.
Include in MC all expenses: from campaign expenses to marketing salary and software cost.
If Company A spent $10,000 on attracting clients in the 4th quarter of 2017 and acquired 100 clients, CAC = $100.