Customer Acquisition Cost Lagos Nigeria
by Samson
(lagos)
Customer Acquisition Cost Lagos Nigeria
Every business has a customer acquisition cost irrespective of whether you're doing business in Lagos Nigeria or anywhere is in Nigeria.
So, what is your customer acquisition cost?
In simple words . . . How much money do you spend before you get one person who buys your product or service?
You may wonder, "Why is it important to know how much I spend in marketing to get one customer?"
Simple. If you know how much you current spend to acquire one customer, then you can determine what your return on marketing spend is. And when you know your return on marketing spend, you can determine if your business marketing strategy is cost-effective or needs to be overhauled.
Remember . . . the single most important ingredient you need to grow the profitability of your business is effective marketing strategy.
How would you know if your marketing strategy is effective?
The answer . . . Effective marketing strategy results in low customer acquisition cost.
If your client acquisition cost is unnecessarily high, your business will become less profitable.
How To Calculate The Cost of Acquiring One Customer
So, how do you calculate the customer acquisition cost for your business?
Consider this example.
Suppose the total amount your business spent on all marketing activities in 2018 was 20 million Naira.
Suppose also that your business acquired 400 new customers in 2018 and the sales directly attributable to your marketing spend is 180 million Naira.
From the above data, we can conclude that . . .
1) Your customer acquisition cost for 2018 is 50,000 Naira per customer and
2) You Return On Ad Spend (ROAS) for 2018 is 4 times your advertising spend
Bottom line.
You cannot make smart business decisions if you do not have data!
Therefore, you must gather data in your business in order to make smart decisions that will grow the profitability of your business.
Optimising Customer Acquisition Cost
Want to grow your business and your profit?
If yes, there are two things you need to start doing right NOW.
You need to subscribe to a marketing software that helps you . . .
1) Build a list (or database) of your customers so you can easily market to them again at lower cost and
2) Track sales directly due to your marketing campaigns so you can increase the profitability of your business
The good news is . . . we offer a marketing software that helps you accomplish the above two objectives and also optimise your customer acquisition cost.
Click HERE for a FREE DEMO of our marketing software.
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