“How can we reduce customer acquisition costs?” It would be one of the Top 3 questions I get when working with CPG brands. Anybody who asks me receives the exact answer you will find in this video.
A quick Google search shows the usual answers –
- Retarget customers
- Affiliate/Referral programs
- Improve the sales funnel
- Run more paid media
- Review Google Analytics
- Email marketing
- Reduce customer churn
None of these is where I would start.
Based on my 20+ years of experience in reducing customer acquisition costs, the place where I would begin will get better results and is far more cost-effective.
Once you have completed this process, you can revisit the other suggestions.
I’m a proponent of constant testing. However, throwing money at paid media to experiment before understanding the right relevant messaging to engage your prospective customer may be a waste of money and better spent on understanding your core customer.
Do you agree? I’d love to know your thoughts in the comments below.
