Managing CAC on a Daily Basis: Practical Insights
Posted: Tue Feb 11, 2025 7:53 am
A startup would be incurring more expenses, often exceeding its revenues. They are more likely to have a higher CAC compared to well-established companies.
Here are some tried and tested ways to manage and reduce your CAC.
Identify your target audience and understand what they want. Reach them on their preferred channels.
Segment or narrow down your target audience based on their purchase history, behaviour, and interests. It allows for more targeted messaging and campaigns with higher chances of conversions.
Invest in SEO instead of heavily relying on ads. It will help you lower your overall marketing spend in acquiring new customers. While paid ads may bring in more conversions in a short time, they are also expensive. Direct your budget towards organic results for more benefits in the long run.
Make the most of your existing content (marketing material). You can hong kong phone number list do so by repurposing your old content, leveraging user-generated content, and promoting your content across different channels to reach more potential customers.
Implement A/B testing for ad copies, marketing campaigns, landing pages, etc. It enables you to test different variations and identify the one that drives more conversions at lower costs.
Ensure that all your channels of business inquiries or integrations are working properly and that you’re able to capture leads from them in real-time. If it’s not happening, then you’re already wasting a chunk of your marketing spend without actually getting any customers.
Prioritise higher intent prospects. You can do so by implementing a lead scoring system. It assigns points based on how well a prospect fits with your ICP. It’ll help you prioritise leads, and sales representatives can focus on the most promising ones.
Develop a well-structured referral program to incentivise customers to recommend your products and services to others. Word-of-mouth marketing is a cost-effective strategy to bring in more customers.
Implement retargeting strategies to persuade potential customers to rethink their decisions.
Improve customer retention and minimise customer churn rate.
Here are some tried and tested ways to manage and reduce your CAC.
Identify your target audience and understand what they want. Reach them on their preferred channels.
Segment or narrow down your target audience based on their purchase history, behaviour, and interests. It allows for more targeted messaging and campaigns with higher chances of conversions.
Invest in SEO instead of heavily relying on ads. It will help you lower your overall marketing spend in acquiring new customers. While paid ads may bring in more conversions in a short time, they are also expensive. Direct your budget towards organic results for more benefits in the long run.
Make the most of your existing content (marketing material). You can hong kong phone number list do so by repurposing your old content, leveraging user-generated content, and promoting your content across different channels to reach more potential customers.
Implement A/B testing for ad copies, marketing campaigns, landing pages, etc. It enables you to test different variations and identify the one that drives more conversions at lower costs.
Ensure that all your channels of business inquiries or integrations are working properly and that you’re able to capture leads from them in real-time. If it’s not happening, then you’re already wasting a chunk of your marketing spend without actually getting any customers.
Prioritise higher intent prospects. You can do so by implementing a lead scoring system. It assigns points based on how well a prospect fits with your ICP. It’ll help you prioritise leads, and sales representatives can focus on the most promising ones.
Develop a well-structured referral program to incentivise customers to recommend your products and services to others. Word-of-mouth marketing is a cost-effective strategy to bring in more customers.
Implement retargeting strategies to persuade potential customers to rethink their decisions.
Improve customer retention and minimise customer churn rate.