How to Reduce your Customer Acquisition Costs

A lot of time, effort and money go into a successful sales and marketing strategy. All that time, effort and money is lost if a new customer decides to try your product or service and then leaves, vowing never to return, because of poor service.

When a new customer leaves unhappy, you lose more than a second, third or fourth purchase.  Chances are your very unhappy customer will share their negative experience with others.  Some of those people may have been future customers and now, because of a bad review from a trusted friend or colleague, your sales and marketing message falls on deaf ears.

Do you increase your marketing spend to get more new customers to replace all those unhappy ones or do you focus on improving customer service, repeat business and referrals?

Developing a strong customer service strategy isn’t sexy.  It’s not flashy and doesn’t show as well as a creative ad campaign or really cool promotion.    What a strong customer service strategy will do is reduce your customer acquisition costs.  Every dollar you spend getting a new customer goes further if that customer comes back a second time, a third time and more.  Some loyal, repeat customers becomes unpaid sales ambassadors, stretching that dollar even more. Referrals from friends, family and colleagues increase the original reach of your marketing message.

My two cents … keep on creating those strong sales and marketing plans, in conjunction with a strong customer service program.   You’ll always need to find new customers.  When you do, make sure your service team is prepared to give them the kind of service that keeps those customers coming back.

2 thoughts on “How to Reduce your Customer Acquisition Costs

  1. Hi Laurie
    It is very true that you not only lose that customer but all of their referrals of your business. I think many times businesses forget about the trickle down of unsatisfied customers. Have a great weekend!

    • Thanks Tina. The trickle down effect does seem to be forgotten about sometime and that is too bad. Word of mouth, either positive or negative, can have such a bit impact on the success of a business. Most people will trust the word of a family member, friend or colleague over an ad, which makes it so important that our customers are saying good things about us. Thanks for stopping by. Enjoy your weekend as well!

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