Managing the data of your leads can be challenging, but if you know where to look and what to do with the numbers, it can tell you a lot of extremely valuable information. If you're interested in finding out if your current marketing strategies are successfully attracting and retaining clients while you maintain a steady profit, one important piece of data that you need to look at is your customer acquisition cost.
To calculate your customer acquisition cost, you'll need to gather a few pieces of data that can all be found in your CRM system: lead source, closing rate, and ad spend. Continue reading to learn more about what data you will need in order to calculate what your customer acquisition cost will be.
Do you know where your leads are coming from?
Knowing where your leads originate helps you optimize your acquisition strategies effectively and understanding the source of your leads is crucial for calculating customer acquisition costs. Relying on customer feedback for this data alone won't give you the information you need; they often can't provide the specific details you need to analyze the source of that lead. For instance, a customer might say they found you on Google, but that could mean various things - like a Google local service ad, organic search, or Google My Business listing. At Lawnline Marketing, they encourage using lead-tracking software and integrating it with your CRM. Your CRM can then help you analyze not only where your leads are coming from, but also customer spending, generated upsells, and lifetime value.
Next, Calculate Your Closing Rate & Ad Spend
Once you know where all your leads are coming from, you are one step closer to calculating your customer acquisition cost. Another piece of data that you will need is your ad spend. How much are you spending to acquire your leads? Again, your CRM system will track this information for you and allow you to look at this data from a bird' s-eye view. Because you already know how many leads you're acquiring per platform, you should be breaking down your ad spend in the same way so that you can understand the platforms that you have the most success on.
Knowing how much you're spending on a certain amount of leads is where many business owners stop. However, there's one more piece of data that you need in order to successfully calculate your customer acquisition cost. What is your closing rate on these platforms? Knowing this data will give you a well-rounded understanding of your campaign success and, from there, you'll be able to calculate your customer acquisition cost accurately!
Grasp the data to unlock your strategy. Call Lawnline Marketing today!
Although it can be challenging, mastering this data will give you a real-time insight into your business's heartbeat. If you do not have a marketing agency, then you can use that information to tailor your own marketing strategy. However, if you do have a marketing agency, you can bring these insights to them and ask if they are calculating this number, what it means, and how it compares to competitors in your region.
Lawnline Marketing is known for getting results, focusing on the platforms that generate leads. If you are looking for an agency that can help you understand and calculate your data, contact them today at (813) 944-3400.
