How to reduce customer acquisition cost

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Reducing customer acquisition costs is part of every manager's routine, as CAC is an indicator that shows the monetary efficiency of a strategy.

In other words, the higher the ratio, the more money the company is spending to acquire a customer. Therefore, the return on the stock is low.

If you are having trouble reducing your CAC, here is a step-by-step guide:



1. Understand who your customer is
Understanding your target audience is essential for a student database strategy. In fact, it’s the starting point, because when we “shoot in all directions,” we’re wasting resources.

So, if you want to reduce your customer acquisition costs, spend some time getting to know your customers. Find out what their needs, desires, and fears are. Understand their purchasing and financial behavior.

Market studies , interviews, questionnaires, field trips… all these tools contribute to rich and personalized data collection.

We at ACP are in constant contact with our members. We talk on the phone and send out forms with objective questions to understand exactly what they need.

With this information, we define the personas of our business and draw an empathy map for each of them. These tools are free, highly visual and intuitive, facilitating the development of actions and products.



2. Make a long-term plan
Planning is structuring the strategy over a period of time, indicating all the integral parts and stages.

When we don't have long-term planning, it becomes difficult to identify the origin of possible errors.

Therefore, map out how your customers interact with your brand and products. Consider all stages: from the first contact to after-sales.

Once you define the customer journey, you will likely find bottlenecks and areas for improvement.

Leverage these insights to reduce your customer acquisition cost.



3. Set acquisition goals
A plan is only complete when it has clear and coherent goals.

Goals set the stage for where your team should be and also serve as an incentive.

But how are they defined?

From the metrics!

What are the results of your marketing actions? And your sales actions? What could be improved? What resources do you have at your disposal today?

This reflection favors the definition of goals compatible with the reality of your business.