How much does it cost to get a new client?

Have you ever wondered how much does it cost to get a new customer?

Getting new customers and selling your product is your number one priority. It doesn't matter if you're just starting your business or if you've already made hundreds of dollars, closing those sales is what matters.

It's not about getting a lot of web traffic, twitter followers, Facebook likes or good public relations, if this doesn't translate into sales, it means nothing to your business.

What every business should look for is to have a good quality-price deal that would allow the acquisition of customers for the company. This is the only thing that will keep your business alive.

Since customer acquisition is so important, it's necessary to find ways to measure the cost of this service. The CAC, Customer Acquisition Cost, is the sum of the resources that a company has to allocate in order to acquire an additional customer.

To calculate the CAC, what most companies add up the following costs:

• Marketing representatives
• Advertising material
• Advertising campaigns
• Sales representatives
• Commissions paid during a certain period of time

All of it, divided by the number of new customers acquired during that same period of time.

This total amount is what is costing us to get a new customer.

We nowadays face the opportunity of acquiring customers basically in two ways:

• The traditional one
• Using the Internet, digital media

The traditional one is more expensive, since traditional media include production, post-production, editing, audio, printed materials, shipping of materials... plus -don't forget!- the Spill Out that using them implies, since they don't reach a targeted market, they reach literally everyone.

On the other hand, by using digital means:

• Our company is there for thousands of internet users to see, using a material that we only produce once every time: blogs, landing pages, call to action, product catalogs (without having to print several flyers and catalogs).
• We don't need to move around sharing catalogs, or print them in a colorful and expensive way.
• We have the opportunity to rectify the sales strategy in an easy and quick way, at relatively low costs.
• We will reach a more focused market, that is, people who are already interested in the product or service that we sell.

And if this weren't enough, by using a digital marketing strategy, you are arriving earlier in the sales cycle, since you'll be there at the first moment when the client is doing a first internet research on the product he/she wants to buy.

For all these reasons, we can say that the CAC is lower when using digital tools and consequently, a better option for businesses.