CAC, or customer acquisition cost, is defined by HubSpot as “the total sales and marketing costs required to earn a new customer over a specific time period.” Any smart company would set budgets side for marketing in general, but have you been keeping track of your customer acquisition costs? Customer acquisition really is its own beast because these campaigns usually involve a considerable amount of trial and error to get right. Multiple tests require money, which cuts from the overall marketing budget. If your customer acquisition strategies are carving out profitable pipelines, it makes sense to keep pouring more into your ad spend. If it isn’t nurturing and converting the amount of sales you’re aiming for, then it’s time to revisit your current strategies.
Studies reveal that companies generally spend 7-8% of their gross revenue in advertising every year if their annual income amounts to less than $5 million. After that, marketing costs are raised up to 10-12% of the company’s net profit. That’s billions of dollars being thrown into customer acquisition yearly, and the businesses that are doing it right are reaping the benefits of their high ROI.
Here’s how Phonexa can help you crack the code of getting more returns from your ad expenses.
Understand Your Customers with Call Tracking
Before you can build better marketing campaigns that add value to your customers’ time and give high return for your expenses, you first need to understand who your customers are and what they’re all about. Luckily, Phonexa is expert at customer targeting. Our premier call tracking software gives you detailed customer insight and call details.
Without a proprietary tracking platform to give you the full insight on your calls and attribute success to the right ad campaigns, you won’t have the data you need to create the best, high-converting, high-ROI campaigns. Why waste your marketing budget on endless tests with low returns when you can track your progress and make faster optimizations with call tracking? It’s a game-changer when you’re provided with real-time reports on your ongoing calls and campaigns. This gives you room to make impromptu optimizations to improve your customer journey as it unfolds.
Optimize Your Advertisements Accordingly
The quality of your customer journey determines your conversion rates, and customer acquisition is the trigger that sets the rest of the journey into motion. Your customers can’t convert if they aren’t interested in your products to begin with. Regarding this stage, the quality and relevancy of your ads matter most. We previously mentioned how call tracking can help you know your target audience better, so with that capability in mind, we’ll move into how call tracking can make every aspect of your advertisements intentional and effective for your audience.
One of the most valuable features of call tracking is that it tracks the ongoing progress and overall success rates of your campaigns. You can thoroughly conduct A/B testing with call tracking and receive up-to-the-minute updates on your ad performances. For example, call tracking will tell you which calls were spurred by which advertisements so you can decide whether or not those ads are impacting the right customers. With the help of our toll-free and vanity phone numbers, you can also improve your branding and make it easier for customers to reach you.
With call tracking on your side, you can feel free to target your customers by location or demographic – however you want to reach your target bullseye. Schedule a demo with us today to get the inside look on the platform. One of our experts will demonstrate how Phonexa can lower you advertisement costs and make your marketing efforts more effective.