The Cost Per Customer Acquisition is a cost derived from how much you spend (or are willing to spend) to order to convert an individual into a paying customer. The number has many different factors from how much you are spending on advertising to how much went into developing the offer. The goal is to make this cost as low as possible while retaining high conversion rates that way your business can end the transaction with higher profits.
There are many different strategies for lowering this cost; here are three that are the best for implementation (that any and all businesses should fine an ease to implement):
1. Refine the advertising target
Would a residential individual living in a major city, like New York City, likely purchase a riding lawn mower from your business? Of course not.
Targeted keywords (and marketplace understanding) is the best way to rapidly reduce the cost of your advertising and subsequent cost per customer acquisition. When you have a defined target you are able to cater your advertising & marketing efforts to reach the exact types of needs, wants, desires, and demographics that make up the marketplace.
҉ The key concept to learn (and explore) is conversion optimization.
2. Create, test, and optimize the (new) creative
Advertising creative you may have used last year is most likely outdated and have reached a level of ad blindness so then why would you continue to rely on it?
People are spending a great deal of their time online (due largely in part to smart phones). It means that if someone frequents your website, social profiles, or popular destinations for your campaigns they are likely becoming tired of your advertisement.
Lowering the cost of your customer acquisition is done so by continually creating, testing, and launching new creative to always stay fresh to the marketplace as it will stand out to regular users (and have full effectiveness on new acquisitions). The same can be said about tweaking and creating relevance for old creative that continues to do well.
҉ The key concept to learn (and explore) is split (A/B) testing along with learning the advertising platforms which offer many options for experimentation and testing.
3. Maximize the landing page(s)
You found the right audience, you’ve done your research, and you’ve created great creative but what’s the point if they land on your page and immediately bounce?
The right landing page can make all the difference and much of it plays into the previous two points about having a targeted market and ensuring that the creative is on point.
The only way to create an effective landing page is to continually test them because each small element, from bullet point to graphic, can make the difference in conversion which ultimately shifts that cost per customer acquisition.
҉ The key concept to learn (and explore) is landing page optimization.