Customer acquisition cost (CAC) is one of the key metrics for any business that relies on getting customers for revenue to survive (and thrive). Needless to say, that’s only about 99% of all companies. CAC refers to all the sales and marketing costs needed to get a customer. To calculate it, take the entire sales and marketing costs over a given period. Include salaries and other related expenses, then, divide it by the number of new customers.
Develop Buyer Profiles to Identify and Target Your Ideal Customers
Educate yourself about your customers
Offers potential for repeat business
Become an expert
If you need open heart surgery done, who would you rather have operate on you, the Doctor that is rated #1 in the country or a general surgeon who is not specialized?
- Customers seek you out and you do not have to spend as much on marketing
- As a bonus you can charge premium prices
Mix It Up With Free Channels
Since you developed a customer profile and you know them intimately, you now know where they hang out online
- Social marketing is the best ROI because they are FREE!
- Run regular campaigns and share them across the important social sites with tools like Hootsuit
Constantly think of new ways to market your IT services at the lowest cost possible
- There are plenty of new opportunities, techniques, & strategies being implemented and created everyday
- Research what the top companies in your industry are doing and how they are doing it. There are always better ways of doing things. If you make it a focal point and intend it you will come up with great ideas.
Partner: Invest in Allies
The fundamental basis of doing business is building relationships and people ultimately want to do business with people they like and are committed to the same values, objectives, and goals.
- Show people that you are committed to creating value and that you will do everything you can to help them reach their goals
- Create your friends before you need them: That FIRST impression is so important. That initial stamp goes a long way.
- Look for businesses that can provide what you need at a cost cheaper than what you are paying someone else.