One of the most important metrics for businesses is customer acquisition cost (CAC). This metric, when combined with other numbers, can point the way to making your business more and more profitable.
The secret is to learn how to reduce that value to increase profitability.
In today's article we are going to talk about how to reduce the CAC of SaaS services .
Continue reading!
What is CAC?
Customer acquisition cost ( CAC) is the amount paid by afghanistan email list 168973 contact leads your company for each new customer.
When your company invests, for example, $5,000.00 per month in customer acquisition and wins 10 new customers, each of these deals closed cost your company $500.00.
CAC = sum of all amounts invested in acquiring new customers / number of customers acquired
Why is it necessary to reduce CAC?
Now that you know what customer acquisition cost is, it's time to understand why you need to reduce it.
Your company's profit is directly linked to the cost of customer acquisition.
When a customer costs $500.00, they only start bringing in real profit when your ticket exceeds that value. If your company's average ticket is below that number, your customer is still hurting your business.
Low customer acquisition costs are responsible for increased profitability. The cheaper each new customer costs your company, the lower the value of their purchase must be for it to start bringing good results for your business, which will maintain profitability and sustainability.
The frequency of purchases is what will ensure real profits come to your business, cooperating for its growth and development.
How to reduce CAC of SaaS services?
Customer acquisition cost (CAC) is one of the most important metrics for the health of your business.
SaaS services, as well as other types of businesses, also need to keep an eye on these numbers to increase profitability and company sustainability.
We have separated some tips that will help you reduce this indicator:
1. Optimize your website
To reduce your customer acquisition cost, you need to optimize your website. Look at how your pages are, whether they are optimized for conversion and whether they are intuitive.
Also check the SEO of your website: is it well done? Good SEO allows you to better position your pages and attract more and more people interested in products, services and solutions similar to those you sell in your company.
It is essential that your site is intuitive, complete, full of information, and with optimized and functioning conversion pages and forms to increase sales opportunities.
Conduct a good usability study and create tests to find out which types of CTAs , colors and designs best match your target audience.