The ability to show the sustainability of a strategy or the growth of your business becomes even more evident when CAC is used in conjunction with an indicator such as LTV .
Wouldn’t business be more magical if you could know how much revenue a person would generate over the entire lifetime of their customer life ? LTV is a metric that calculates exactly that — the “Lifetime Value” of your customers!
Alongside customer acquisition cost, this indicator helps determine whether the company:
- You are spending efficiently on attracting customers;
- You are acquiring vietnam telegram data customers that justify these expenses;
- It is taking these numbers into account with the values that each customer will generate over time.
This is a perspective that informs a whole range of strategies aimed at recurring sales — and increasing profits with lower expenses — making LTV quite complementary to CAC!
Tip: How does your company’s communication planning directly affect your profit?
How to reduce customer acquisition cost?
There’s no way around it: when talking about reducing CAC, you need to look at the planning as a whole and evaluate transfer your data and integrations whether both the demand capture and demand generation strategies are working!
Demand capture is your company’s potential to capture the finite and renewable quantity of people who may become interested in your offering from time to time.
These are customers who show interest, but who, if they are not convinced in the next few days, will leave the purchase for next month (and will never come back).
Having a strategy in place to capture this demand is just as important as the parallel strategy that feeds the continuous influx of potential customers into the company — demand generation!
Both cover Digital Marketing techniques aimed at making closing new sales a predictable, consistent and cheaper phenomenon!
I will present some of them below.
Marketing Automation
Digital Marketing automation text services tools are among the most valuable investments a growth-focused company will make on the Internet.
With them, you can cut out redundant tasks (freeing up your team for higher priorities) as well as create qualified traffic flows to bring new leads into your business!
Since a marketing automation tool can do the jobs of multiple people simultaneously, the cost of customer acquisition decreases due to efficiency — as do the efforts to keep the funnels running!