Lower your CAC, increase your profit. Sounds simple right?
1. Improve your sales funnel proficiency to reduce CAC salaries.
This can mean anything from becoming more efficient at building leads, personalizing your messaging through the selling process or fine-tuning your pitch. Decreasing your sales cycle automatically lowers your CAC by letting a salesperson focus on more leads at once. This spreads that person’s salary out over more customers eventually acquired. Quick tips to shorten your sales cycle:
-Use automated CRM tools to cultivate leads and create tailored campaigns.
-Be transparent about pricing.
-Know your prospects’ goals and/or customers’ expectations.
2. Create an efficient marketing machine.
Design your customer acquisition strategy to be the most efficient marketing machine possible. Know your target market and build your strategy accordingly. If you’re diffusing your marketing budget and salaries out over a poorly defined target audience, you could be wasting valuable dollars on selling to someone who might not actually be a potential customer.
Social media marketing is a powerful tool you can use to cut marketing expenses and lower your CAC. Not only can you focus customer engagement to learn more about their personas and create economical, targeted ads, but it can allow you to have your customers do the selling for you. A good word-of-mouth (WOM) strategy is one of the best (and cheap) acquisition tools you can implement. A couple of ways to strengthen your WOM strategy:
-Set up loyalty and referral programs.
-Incentivize brand ambassadors.
Related Read: Curate a culture for growth and incentivize employees with profit sharing, ESOPs and retirement plans that align personal success with business growth.
3. Optimize your website.
Don’t overlook the importance of your website in this modern world. Make sure your site is easy to navigate for the audience that you have now carefully targeted using the steps above. While cutting expenses is key to lowering your CAC, spend the money and invest in optimizing your site for conversions:
-Review form fields for concise, ease of use.
-Implement A/B tests on your landing pages to make sure your call-to-action is working.
-Ensure that your site is mobile friendly, so you do not lose transactions. Think about how many times you research a company on your smartphone before making a purchase.
Investing in conversion rate optimization can lower your CAC by ensuring that you are getting the most out of your paid advertising campaigns. Increasing optimization can increase your total customers, thereby lowering your CAC.
Remember, lowering your CAC does not happen overnight and it pays to continue to track it. Impress your investors as your customers become more profitable and less costly to your business.