Post by muntahaislam222 on Feb 28, 2024 4:41:29 GMT
There are many concerns for those who want to undertake a startup, right? Firstly, new entrepreneurs must study the market and create a product or service that will fully reach their target audience. To achieve this, marketing and sales strategies must be designed to win over customers, which will obviously bring costs to the business. However, as in any company, there is often not a huge amount of capital for investment to solidify the startup in the market. Therefore, it is important that efficient financial control occurs, in order to measure the results obtained from certain expenses. Regarding this subject, CAC (Customer Acquisition Cost), also known as "Customer Acquisition Cost", arises for us. This is an analysis carried out on sales and marketing costs , through which the entrepreneur can understand how much he needs to invest to reach his customer. The truth is that Customer Acquisition Cost is essential for any business, however, in certain situations the marketing and sales strategy for acquiring customers must be reviewed so as not to compromise the business budget. In this post you will discover a little more about the importance of CAC for startups.
Customer Acquisition Cost: complete guide What is Customer Acquisition Cost The Customer Acquisition Cost is a calculation that every company needs to carry out in order to have control over the progress of the business. Basically, CAC is the sum of all marketing and sales expenses in a specific period divided by the number of Europe Mobile Number List customers acquired in the same period. This includes all expenses to bring a customer to the company at all stages of the sales funnel, such as: expenses with sales and marketing personnel, media expenses and other expenses in these departments. That's why before we learn how to calculate Customer Acquisition Cost, let's take a few steps back and return to a very important topic: what is a sales funnel? Sales Funnel: remember this concept If you have been in the marketing field for some time or have been following the subject, you certainly already know what a sales funnel is or have heard about it. The idea allows you to monitor consumers, predict company performance and plan marketing and sales actions.
The funnel really seems like the solution to all problems, but it's not the only tool you should bet on. If you've ever been to a digital marketing event, you've probably heard the term more than once and heard about its effectiveness. The secret lies in the fact that management through the funnel helps guide a lead through several stages of the purchasing decision process until its completion. This means that the company has mapped the customer journey, which helps when thinking about actions that stimulate the process of creating awareness about a product, educating the customer about its solution, and ultimately conversion. In short, the sales funnel works like a compass that will direct investments, always focusing on personas and purchasing stages. A funnel not so funnel As not all visitors will become customers, and many of them enter the process but end up escaping, we can say that the sales funnel is actually a leaky bucket. When using the term funnel, it is assumed that all prospects that enter at the top leave at the end, that is, a lead will always become a customer.
