Lead generation alone isn’t enough, which is where most efforts are applied

AAARRR Pirate Funnel — Acquisition

of a growth funnel yield a 51- 100% return.

Acquiring a new customer is than keeping an existing one — OutboundEngine

Background

Put simply, customer acquisition cost (CAC) is the CAC is a metric no organization can afford to ignore. CAC is important as it guides organizations to make such decisions as:

  • Which channels should we put
  • What promotional activities
  • Is it worth spending more on
  • Who are the customers who yield the
  • How to
  • Should we
  • How can we

Such strategic questions help to leverage two important things, lower costs, and increase the yield on spending. , shortening your sales cycle, rewarding referrals, and creating added value.

Context

The cost of acquiring a customer is vital to ensuring your unit economics work. From the cost of a customer to the to be well-measured and guide strategic optimization decisions. Here is a look at the average CAC in a variety of industries:

  • Travel: $7
  • Retail: $10
  • Consumer Goods: $22
  • Manufacturing: $83
  • Transportation: $98
  • Marketing Agency: $141
  • Financial: $175
  • Technology (Hardware): $182
  • Real Estate: $213
  • Banking/Insurance: $303
  • Telecom: $315
  • Technology (Software): $395

By nature, demand increases over time in healthy industries, indicating that the will always go up. That said, so does the customer lifetime value

Takeaway

Getting customer acquisition costs down and customer lifetime value up is the name of the game. , and ensuring strategies that lower costs over time are effective is vital. At the same time, understanding the over the lifetime of a customer needs to leverage value-creation that makes sense and is profitable.

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ABOUT — Growth Thinking

for growth hacking by the bestselling author of Ready Set Growth Hack, Nader Sabry. It has been applied as a book and a $1 million challenge known as the 10-day growth hacking challenge, which has generated $138m in revenue. This methodology has been adopted by universities like Harvard and Stanford, fortune 500s (Google/Microsoft), and unicorns.

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Strategist entrepreneur & innovator in space tech, government, & health/wellness. Has raised $20m directly /+$100m indirectly for startups. www.nadersabry.com

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Nader Sabry — Growth Hacking

Strategist entrepreneur & innovator in space tech, government, & health/wellness. Has raised $20m directly /+$100m indirectly for startups. www.nadersabry.com