How can you minimize the customer acquisition cost?
Burcu Zeynep Konuk
6 replies
I need to hear how you manage and decide on it.
Replies
Satish Kumar Veluri@satish_kumar_veluri
Keep it organic as much as possible, understand your target audience and highlight how your product solves their pain points (short and crisp).
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Largely comes down to 2 things;
1. Get better at targeting people. Figure out who your exact customers are, exactly why they signed up, and exactly where they came from/learned about your product. From there adjust your landing pages/site to reflect exactly what your exact customers expect to see, show off the exact items that were the deal makers for the previous customers.
Untargetted advertising is the fast possible way to burn cash - and unless you have a product on the level of Coca Cola where the target market is literally everyone, that type of advertising (tv ads, bus stops, buildings is an absolute waste of money.
2. Get better at encouraging your existing customers to promote your product. They are your best advocates, they are your social proof, and if they are already using your product, they know all of its strengths and can promote those to their acquaintances. Best part, it's either free, or you only have to pay a commission/reward only after a successful signup.
If you get amazing at #2, you can eliminate #1 entirely. Tesla being a prime example of this. No advertising, yet the product is so good that the fans can't stop talking about it.
Don't get hooked on the drug of buying users from Facebook/Insta.
Creativity in how you advertise and market should lower cac
That could mean anything from a new content strategy to attempting some outlandish growth hack
Three steps that you can take right now to minimize CAC:
1.Identify the target audience: Create a buyer persona and then target the buyers. This will help you create a tone of voice that really resonates with your customer.
2.Monitor churn rate: Monitor customer churn and make sure you take appropriate measures to reduce it.
3.Reach customers on their preferred channels: Meet customers where they are and enable them to complete their purchase without having to navigate through multiple channels.