Page 91 - My Marketing Sucks Book

When we asked them about their CAC (cost of acquiring customers) for this
particular clinic, their answer was $0?!

The owner said “We just posted the flyer and sent out that email. It doesn’t cost
us anything to send emails.”

Understand Your Costs to Get a New Client
That’s when we realized we had a client who did not understand his business
model and whether or not it was healthy. We reminded him of a number of

obvious factors to consider:
1. The time and effort to build his database of 3,000 people.

2. The cost of his email service provider.
3. His cost of the graphic designer to create the flyer.
4. The cost of his staff to answer phone calls and to reply to emails.
You need to dig to uncover ALL your expenses related to getting people through

your front door and related to customer acquisition.
Getting new customers can be costly. You have to keep track to make sure your

advertising and marketing are generating profitable business.
Keeping Them Is Less Expensive - And More Profitable

This is just one reason why we stress the importance of Superior Customer Care.
It's much less expensive to keep your current customers happy than to go and
find new ones. When a customer comes back and buys from you again, the cost

per acquisition was already paid for.
Understanding the concept of Cost of Acquisition of a customer will really help

you focus on activities that are most profitable and efficient for your business.

Remember, there are only three ways to make more money and grow your
business:

1) Get more customers,
2) Get your customer spending more, and
3) Get your customers lasting longer.

Not only is the first one the toughest - it's also the most expensive.

Let’s make sure you are positioned to do it well!