1 Simple Solution to Reducing Customer Acquisition Cost
By now, you can see the enormous role reducing Customer Acquisition Cost plays in managing your business and increasing profits. Hopefully, you spent the time to calculate your company’s CAC using our Free Downloadable CAC Template. If not, here’s the link, Download Your Customer Acquisition Cost Calculator.
Once all the costs are detailed, you must be thinking of the ways you can be reducing customer acquisition cost. Before you start designing a plan for reducing Customer Acquisition Cost, let us offer a solution that you won’t see anywhere else.
Consider the following three questions and answers.
We know that conversion rate is directly proportional to profit. The higher your conversion rate is, the higher your profits are. The first two blogs in this series explained that CAC is inversely proportionate to profit. Download Your Customer Acquisition Cost Calculator.
In other words, to increase profit, a business needs to reduce CAC. To optimize profit or lower Customer Acquisition Cost, we need the accurate conversion rate. Not an easy job, right? Maybe, our reverse engineered questions will help you.
The first step to get an accurate conversion rate is to record the daily details of your business. It is not as easy as tracking your daily steps or water intake but obviously more important for a healthy business model.
Almost every B2B company uses online marketing and advertising campaigns. And luckily these campaigns can be attributed. Tracking creates a mammoth database but unfortunately, 90% of this data remains unprocessed. This pile of data usually just lies buried within the tracking software and is not easily usable. So it doesn’t help you make informed changes in your marketing strategies. The data is gathered, but as long as it remains unprocessed, changes and adjustments to marketing strategy are basically guesses.
So, the second step needed to get your accurate conversion rate is — process the data collected from tracking.
For more information, please read these recent blogs:
To make informed changes, you need the right data and the right reports. The right data must include the complete customer purchasing journey. Most marketing analytics monitor one-step in the purchase process. For instance, Google Analytics tells you about a person’s online behavior.
What happens when your marketing works and a person is ready to buy, but they want to have a question answered immediately? Or maybe the potential customer doesn’t want to complete the order online. Does your marketing data capture phone calls? Can your marketing data link online activity with phone calls?
Convirza call tracking and analytics are the bring between digital and traditional advertising and the ever-important phone call. We process all the data in minutes and provide our clients more than twenty-five different reports based on your business preferences. These reports can be customized and scheduled for timed delivery. Reports can also be downloaded.
Convirza’s standard call tracking features also include real-time reporting, caller insights and attribution, call recordings, call routing, dynamic number insertion, and even Google Analytics integration. This is the kind of data and service you must be looking for before investing your valuable money.
Answer 2: Contact Convirza and get complete marketing attribution.
Comvirza call tracking provides marketers a simple way to determine which advertising channels are generating phone calls and which are not. It is really that simple.
Convirza captures data when people shift from online to offline and call your business. Why is this so important? Because there is tons of useful activity that happens after the phone rings.
Gartner Inc. says that
Over 420 billion words are spoken on phone calls between businesses and customers and prospects every day. Those words contain buyer sentiment, customer intelligence, sales performance data, close rate and conversion data, and a host of other information.
And until Convirza launched it Conversation Analytics® services, NONE of these words were being analyzed. Conversation Analytics® uses sophisticated speech recognition technology and thousands of proprietary algorithms to analyze call content in near real-time.
Convirza’s call tracking software gives you many indicators and call metrics. In fact, there 45 indicators already built into Conversation Analytics® . A few examples of these indicators are: lead score, agent empathy, compliments, dissatisfaction, agitation level, percent silence, commitment to buy, payment language, reservation made, phone etiquette, cancellation, complaints. objection language, conversion, and many more.
Conversation Analytics® services get this data from the words, phrases, and other cues deciphered on phone calls. The key here is to make the data even more useful. Reports generated by Conversation Analytics® help you understand:
Once you know the things damaging your conversions, you can act. You know exactly which marketing is working and which isn’t working very well or at all. Identifying this is key to reducing your customer acquisition cost as you know what works right for your audience. All thanks to Conversation Analytics and Convirza!
Answer 3: Conversation Analytics unlocks call conversion data and gives you better insights into your customer behavior!
Hope this reverse engineering has made the picture clear and shown you how to reduce your CAC. The one secret solution to reduce CAC is no more a secret. Start reducing Customer Acquisition Costs by capturing and using your phone call data.