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Clicks Don’t Mean $h!t

March 07, 2017  /  by  Michael Westafer

Cost Per Acquisition is Key to Profitability

If you’re a marketer, that headline might sting a bit. Because, let’s face it. We love clicks. We get excited when people click on our blog posts, emails and banner ads. It makes us feel popular. Successful.

Look at all those sweet clicks.

But clicks aren’t getting it done. How many of the people that click end up being qualified leads or ultimately become sales? It’s a tiny fraction. It’s not the most important measure of marketing success.

What is? Well, one of my favorites is cost per acquisition – how much it costs your company to acquire a new customer.

Your customer acquisition cost (CAC) can be calculated by dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent. For example, if a company spent $100 on marketing in a year and acquired 100 customers in the same year, their CAC is $1.

“Customer acquisition cost is the one metric that can determine your company’s fate.”
-Kissmetrics

If you can cut that cost, your business will be more profitable.

So, let’s cut it.

The best way to do this is to increase your conversion rate – the rate at which you’re able to convert site visitors into real, paying customers. If you’re running PPC campaigns, you’re probably already working with an Adwords expert, but you need more than that--holistic solutions that incorporate content, design and technology.

To positively impact conversions, ensure that you enlist experts that can:

  • Provide valuable content targeted towards solving your potential customers’ problems
  • Design emails and landing pages that use best practices to optimize conversions (Discover the Secrets to a Successful Landing Page)
  • Perform A/B testing on those emails and landing pages so you are using the copy, layout, images and CTA buttons that are most effective
  • Build dynamic landing pages (geo-targeting, personalization, etc.) that display custom information and offers

Roger West redesigned PPC microsites for a healthcare client, and conversion rates jumped to 80%.

You can also reduce your CAC by capitalizing on your existing clients instead of just trying to acquire new ones. This can be done by offering supplemental products or services that improve what your customers are already using, and by utilizing a marketing automation system that helps you nurture customer loyalty over the long term.

We got this.

We know from experience that CAC is key. We ran targeted campaign ads across 21 markets for a healthcare client using dynamic geo-targeting, click-to-call messaging, A/B split testing, automated workflows, retargeting and more, and the campaign yielded remarkable results.

  • 87% decrease in the cost of acquisition.
  • 55% decrease in the cost per lead.

Don’t sweat the clicks. Cut the costs – with digital marketing that really works.

Need help getting there? This is what we do. Let’s Talk.