How much would you pay to acquire a new customer?
If you don’t know the answer to that question, or you’re not actively trying to get your customer acquisition costs (CAC) down, your path to profit and sustainability could be a difficult one.
A growing number of marketers have found that it’s becoming increasingly expensive to acquire customers. There’s even research which shows merchants are losing $29 for every customer they acquire, a 222% rise on a decade ago.
And “growth at all costs” won’t be sustainable in 2023 for many businesses grappling with the threat of recession, bottlenecked supply chains and trimmed-down budgets. Entertainment companies also have the added challenges of talent shortages, rising costs and splintering consumer attention.
So what factors can you control to get more lifetime value from your customers and keep your CAC down?
One way is to optimise your funnel to improve conversion.
Find out which parts of your marketing funnel are effective at converting leads and which parts you need to improve.
Begin by mapping out the steps your prospects take in their journey to becoming customers by interviewing customers, getting Google Analytics data on how people navigate your website, gathering email and social media marketing data, or trying out the prospect’s experience for yourself.
Next, gather data using your analytics platform on how many people get to each step – and identify the steps that have the largest drop off. When and why are they leaving? Heatmaps, surveys, testing for bugs, and segmenting customers by referral channel can all help provide insights into why people leave. Once you know what’s wrong, A/B test a solution and implement the one that’s most effective in reducing drop-offs.
You can also use marketing automation tools to scale routine tasks and repetitive workflows so that manual tasks will take up less of your marketing efforts and costs. You’ll get a larger number of leads faster by automating ad retargeting, email campaigns, landing page optimisation, lead scoring, and other tasks.
These tools and tasks may not be your strong suit, so why not get a little help?
Twilio Segment can help you collect and organise your customer data across every touch point, offering one universal view of your customer. The unified view helps teams build differentiated experiences, at scale, and make interactions more impactful with data-driven intelligence.
Not only that, but before you even sign up, they offer a number of free resources to help you get ahead – including the Customer Acquisition Guide 2023 which offers entertainment companies more tips and tricks for lowering their customer acquisition costs. You can also find the Customer Data Platform Report 2023 and Your Guide to Quitting Third-Party Cookies.
Twilio Segment has also come on board for the first ever Variety Australia CMO Dinner which will be headlined by Gary Vee.
