Customer acquisition cost can be commonly defined as an evaluation of the number of sales, communication and marketing efforts, and many other expenses that are usually required to attain new paying clients.
There are many ways to estimate its cost, though, many people strongly believe that only sales and marketing expenses should be taken into account.
So, how do you best calculate your company’s customer acquisition cost? To be fairly honest, there is no best way to do it, because it depends on how your organization operates and it might require a unique method.
Also, you should consider if acquiring new customers is a good tactic to focus on or if you should put some effort into retaining the existing ones in order to maximize your mobile marketing strategy.
Obtaining new customers
Many companies and marketing professionals tend to believe that acquiring new clients is the way to go because it might sound obvious that this a great approach. Who doesn’t want new customers, right?
However, it is the exact opposite. Because it can take more time and also cost up to seven times more than nurturing the ones who´ve already purchased something from your company.
We are not going to deny, though, that customer acquisition is really important to every business and our tip is to not only focus on that but to implement a strategy that provides value to your clients.
The key is to offer a great user experience so they will make purchases again. Also, they will likely recommend your product to their family members or close friends and that is another way of acquiring new customers.
Cost-per-install campaigns are widely implemented by marketers who are looking to increase the number of app downloads and it is a method that can work very well due to the high conversion rate it generates.
Basically, it is a sort of ad in which the marketer only pays for if there has been a conversion. If your goal is to achieve short-results, it can be great.
But, you have to keep in mind that a user might download your app but maybe it was a user who never really purchased something in-app and if it does not satisfy his needs, he might even uninstall it.
See where we are heading? Besides all that, the acquisition cost ultimately will be high because you paid for an ad that never generated any sort of ROI.
You should take into account that if a person has already purchased a good or a service from your app, this client is familiar with what your company offers and is more likely to buy again from you.
In addition to that, it is essential to know how much they spend with your company, what clients recommend your brand to their friends or if you have influencers marketing your business on social media platforms and what is the return on investment that they generate.
After identifying these consumers, it is crucial to adopt a marketing strategy that micro-targets each group, which is a way to build a strong and long-lasting relationship with them.
Fundamentally, customer retention can be considered a long-term strategy because your company will have to make efforts to keep clients coming back.
As we’ve shared with you in today´s article, there are methods that focus on acquiring new customers and also other strategies that target clients that have already purchased something from your organization.
To be quite honest, there is no best way to go because it truly depends on what your company’s objectives are and also how it is managed.
Then, we advise you to test them out and track the results you´ve got, so you will know what’s really worth it to your business. if you would like to have additional insight on that matter, the RankMyApp team is ready to help you out.