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Therefore, it can increase the profitability of your business, which is why many companies try to increase their profitability. Once you have your average costs, you can segment them by campaign and channel. of which marketing actions to prioritize. Our tool for calculating lead nurturing ROI takes this approach. Using marketing automation software will make your marketing process more efficient and increase conversion rates, thus reducing your acquisition costs.
In the example used in this kit, you can see that deutschland phone number investing £15,000 in lead nurturing resulted in an additional £72,000 in revenue throughout the year. This return on investment (ROI) can only be achieved by calculating customer acquisition costs. Customer acquisition cost is also closely related to another metric: Customer Lifetime Value (or Lifetime Value - LTV), or how much a customer is worth to your business. This represents the average value of a new customer for your business.
Consider, for example, a SaaS company whose software costs £1,000 per customer per month and whose average customer lifecycle is 3 years. Their customer lifetime value is therefore £36,000 (1,000 x 12 x 3). Therefore, if the company wants to be profitable, its customer acquisition cost needs to be less than £36,000. You can also use this data to calculate the number of months it takes for a client to become profitable. This will quickly show you the importance of building customer loyalty. How to Reduce Customer Acquisition Costs 1.
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