Reducing Customer Acquisition Cost
- On Demand Marketing Automation
- SaaS Marketing Automation
- Marketing Campaign Management
- Customer Analysis
- Marketing Resource Management
- Marketing Analytics
- Customer Data Integration
- Customer Database Management
- Database Marketing Services
- On Demand Marketing Automation
Many companies measure marketing effectiveness in terms of customer acquisition cost, or in other words, the amount of money they spend on marketing for every sale they make. By reducing customer acquisition costs, companies can improve their bottom line profitability for each sale they make.
There are any number of different strategies that a company can pursue in order to reduce their customer acquisition cost. One way is to narrow the focus of their advertising efforts. For example, making sure that print ads are placed in magazines that appeal primarily to your target audience is likely to result in more sales for every ad. A company selling motorized wheelchairs, for example, might do much better placing ads in AARP Magazine than in a magazine like Newsweek which has a broader spectrum of readers.
Knowing your customer is essential to sharpening your advertising and marketing aim. Traditionally, marketers used demographic data to identify key target markets. More recently, marketers have begun developing customer profiles to help understand the behaviors of their target market in more depth. A customer profile is an amalgam of behaviors and traits of actual customers blended into a surrogate customer who represents one or more target markets for a company’s products.
Another way for a company to lower its customer acquisition costs is to increase the efficiency of its marketing efforts. This can mean better ads placed in the existing venues. Insurance giant Aflac, for example, greatly improved its marketing effectiveness with the introduction of the Aflac Duck character in its television ads in 1999.
Marketing efficiency can also be increased by reducing costs through process improvement efforts within the company. This type of marketing efficiency improvement can often be facilitated through the use of a third party expert in marketing systems such as those provided by Entiera. Entiera promises a “comprehensive approach, which includes a customer centric marketing database, a complete marketing automation system, campaign planning, forecasting and budgeting, an extensive reporting and analytics system, and a prospect universe, makes up the core of your marketing eco-system.”
Companies that have little ability to integrate marketing data from a variety of sources both inside and outside the company can often see nearly instant gains in marketing efficiency and sales results with an integrated on demand marketing solution. Entiera’s Software as a Solution (SaaS) platform offers faster integration, lower costs, and rapid ROI gains when compared with other alternatives. Entiera also provides access to its comprehensive database of customers, both individual and commercial, that can be used to identify prospects and gauge market size and penetration for their client companies.
These methods can be employed either singly or in combination to help a company reduce its customer acquisition costs and improve its bottom line. Most will also have the double benefit of increasing top line sales as well.