Cut costs and maintain, or boost, quality – that should always be a prerogative for any business looking to succeed. The best way to reduce your expenses and maintain service quality is to slash your customer acquisition costs.
Did you know that on average, B2B companies spend $30 to $200 per lead? While B2C companies spend $2 to $25 per lead? It’s clear that customer acquisition costs, when you factor together sales and marketing costs, can be high. While unavoidable to some degree, there are many ways to cut these costs.
Customer Relationship Management Software
Also known as CRM software, it helps businesses manage customer data and interactions. It can also be considered a lead management system. CRM software typically enables you to organize leads, view analytics, and track important data all from one dashboard.
The CRM software systems available on the market range in prices. Using a CRM system can help you improve customers experiences, by catering to them based on data gathered, as well as by staying on top of inquiries.
A CRM system can help ensure that no leads slip through the cracks and no customers go forgotten. CRM systems reduce the losses you might have experienced before.
Marketing automation can replace manual processes that otherwise take a lot of time. One example would be in regards to sales drip campaigns.
Instead of taking an entire week to scour through your customer list, organize each person into different categories, and email each individual the same email, you can simplify. Just upload your customer list into a marketing automation system, organize it into different groups through the system, and email each group an email campaign.
Marketing automation can be used for email, social media, and other marketing efforts. It is a huge time saver and allows you to create multiple campaigns beforehand and schedule each for automatic publishing.
Social media has moved from just a socializing tool to a tool for businesses to build their brand and engage customers. They are virtually free to join and can allow you to reach a large audience quickly and at low cost.
It also generates interaction and can work to increase brand awareness. Using free channels like social media can help you attract customers at a lower cost than traditional customer acquisition techniques.
By getting your customers to refer their friends and family, you can cut your customer acquisition costs by 50% from eliminating the marketing aspect. However, this requires you to have good customer relationships and quality service. A B2B referral system can also allow you to co-market at a low cost.
For example, if you are an eldercare provider, having a partnership with a reputable geriatric care manager, where you both recommend each other to clients, can really help you boost your business.
The methods listed to cut costs are simple to implement and could even potentially increase the amount of customers you normally have. As a business, progress doesn’t end when you breakeven. Instead, progress is process of continuous innovation and increased efficiency.