The other day, I was chatting with this B2C company located in the European region. They were keen to get new customers from multiple locations across the seven seas, but not so keen on investing in building their brand. Their favored weapon for marketing and customer acquisition, deep discounting vis-a-vis competitors based on proprietary sourcing model from China.
We recommended, with competition now completely global, and vigorously knocking at their (SMB) doors, investing in a powerful brand image and online reputation would actually help bring down the customer acquisition costs. Let’s see how.
Customer Acquisition Cost: Free Vs Paid
The fastest route to generate new customers from digital media today is, paid advertising on search engines and social media networks. And as the bidding war for top slot visibility rages into newer heights, conversion rate optimization for each page requires specialist skills. Enter marketing tools like Google Suite, and championing that enables advertisers map visitor demographics to the conversion funnel.
In this race of cost per click, and in the hunt for new customers, SMBs many a time overlook aspects such as branding and building online reputation. So when the offline conversion finally comes down to sales negotiation phase, many a times we see that the stronger brand ultimately wins.
For a better established brand has a stronger effect on buyer psyche and heavily impresses upon final decision making process.
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Customer Acquisition Strategy
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- Time To Results
- Builds Reputation
- Builds Goodwill
- Starting Costs
- Maintenance Costs
- Average CAC
- Lifetime value
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Organic Channels
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- Gradual growth
- Compounding rate
- Compounding rate
- Free to start
- Pay % of sales
- Least
- Highest
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Paid Channels
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- Fast response
- Duration of ads
- Duration of ads
- Initial setup costs
- Bidding, ad costs
- High
- Lower
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CAC: Customer acquisition cost
Do SMBs Need Online Branding And How It Lowers Costs
Addressing the first half of the above title, yes… SMBs must invest resources on online brand building for long term benefits. As for how it will help reduce overall customer acquisition costs, here’re the supporting points.
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- Start with free marketing services from Aidasinc – No setup or initial costs
- Get 7-stage pre-qualified leads without spending a dollar – Nil online branding costs
- Invest management time only on hot leads – Save sales costs
- Pay average 5% of sales to fund marketing campaigns – Win-win
- Keep investing management time on building customer relationship – Sell more, faster
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The average CAC using Aidasinc’s digital marketing services have proven to be lower than other available alternatives. And the best part, as an SMB, you can pay only after you get results.
In conclusion, you will have a team of digital marketing experts working for your business to reach the right audiences using the best marketing media. While the size of your company does not matter.
Sounds good? See this link to learn more Free Start Marketing Service Plan