Are your customer acquisition costs too high?
Is it taking too long to recover your customer acquisition investment?
The math of distribution — how you get your product to your customers — is simple. Your Customer Acquisition Costs (CAC) must be lower than your Customer Lifetime Value (CLV).
But the math works against software companies. They face this additional customer acquisition challenge: Software companies invest heavily upfront to acquire a customer. Then they slowly recover their investment over time in the form of subscription fee revenue.
If you spend too much on customer acquisition, the time to recover your investment will be too long. This will put pressure on your cash flow, your financing, and your growth potential.
If you aren’t paying close attention to customer acquisition costs and churn rates, you may not even realize there’s a problem until it’s too late!
Here’s how to lower your customer acquisition costs and increase customer lifetime value
On this site you can learn the methods that successful software companies use to find, win and keep more customers. Then you can apply these methods in your own company.
Regardless of the sales model you choose – direct sales, channel sales, inside sales, or no-touch marketing – reducing sales complexity will improve your cash flow and your growth rates.
Here you can learn how to use online marketing methods that will reduce sales complexity and customer acquisition costs. How to lower churn rates and increase lifetime value.
Where to go from here…
This site contains free articles on the best online marketing activities, measurement techniques, and methods to change people’s behavior.
- Marketing: The Marketing section includes articles on marketing methods and activities. Topics cover the buyers and their journey, how to attract buyers to your site and to nurture a relationship, how to convert them into customers.
- Measurement: The power of online marketing lies in your ability to measure activity on your site, to test different options, and to optimize the funnels on your site.
- The Mind: It takes more than just information to convince other people to change their minds and their behavior. In this section you’ll learn how to build trust and educate your buyers so they feel moved—to change how they think and to take action.
To learn a little about me, go to About David