The Simple Way to Reduce Your Customer Acquisition Cost
One of the biggest spends that make up your CAC is the time your salespeople (or you as the founder) spend with the prospect on calls and emails to close them.
Many of the customers we talk to have 6-12 months-long sales cycles. (sometimes 18 months)
That's a LOT of time spent massaging the prospect that you have to pay for.
Here’s how you can reduce this time (and your CAC) by 10-20%:
Preemptively create content answering the questions prospects ask you during the sales process. Questions about:
- your product
- your team and process
- your pricing structure
- the ROI for the client & success stories
There are many ways to create this content. You could do blog posts, white paper, videos, an email newsletter, etc.
This will allow your prospects to get the information they need from you on their own time. And they can pick and choose to only look at the bits that they are specifically interested in.
This could mean:
- instead of having to do 3 calls to close a customer, you only have to do 2 calls.
- instead of having 2hr demos, you only do 1.5hr demos because you have to answer fewer questions on the call.
As a result, your salespeople can use their time more efficiently and work on more prospects in the same time period, saving you money on the headcount.
If you’re struggling with high CAC and long sales cycles, content is one of the biggest levers you have. (obv I’m biased here)