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9 Steps to Lower Customer Acquisition Costs and Increased Revenue
The document outlines 9 steps to lower customer acquisition costs and increase revenue. It identifies common problems as low lead volume, poor lead conversion rates, and high costs to generate closed sales. The 9 steps include: 1) identifying decision makers, 2) researching customer buying processes and pain points, 3) creating strong value propositions, 4) aligning marketing and sales, 5) linking all customer touchpoints, 6) automating processes, 7) measuring key metrics, 8) testing and analyzing results, and 9) revising based on lessons learned. Taking these steps shifts focus to the customer's logic and buying process rather than sales metrics, improving lead volume, conversion, and costs.
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9 Steps to Lower Customer Acquisition Costs and Increased Revenue
- 1. www.act-on.com | @ActOnSoftware| #ActOnSW 9 steps to Lower Customer Acquisition Costs and Increased Revenue
- 2. www.act-on.com | @ActOnSoftware| #ActOnSW Chat
- 3. www.act-on.com | @ActOnSoftware| #ActOnSW Twitter #ActOnSW
- 4. www.act-on.com | @ActOnSoftware| #ActOnSW Today’s Presenter Eric Albertson Founder and President Albertson Performance Group @bizleadgen
- 5. 9 Steps toLower Customer Acquisition Costs and Increased Revenue Eric Albertson
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- 8. Poor Lead VolumeDue To • Lame: – Messages – Offers – Content – Subject lines – Pattern – Target selection – Market coverage
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- 11. Conversion Opportunities • 90%of the opportunity is usually wasted due to no real follow-up and nurture to drive conversion • 80% of the “HOT” leads that don’t buy from you also get no real follow-up and nurture to drive conversion • Conversion rates low due to poor or weak Value Proposition 11 “A” = BANT Qualified BANT = Budget, Authority, Need and Timeframe to purchase “B” = 1-2 elements of BANT but not sufficient to turn over to sales DQ = Disqualified “A Miss” = “A” leads that sales lost either to a competitor or “No Decision”
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- 13. 13 Cost to Generatea Closed Sale
- 14. For Some Thisis a Reality: Start-Ups 14 Cost to Acquire a Customer (CAC) Monetization (LTV) 1414
- 15. For Some Thisis a Reality 15
- 16. For Very FewThis is a Reality 16
- 17. What We Need 17 Monetization (LTV) Costto Acquire a Customer (CAC) A well balanced business model
- 18. The Goal Is… 18 DRIVEthe Cost to Acquire the Customer (CAC) DRIVE the Profit from that Customer’s Lifetime Value (LTV)
- 19. No Follow-Up on80%+ of Marketing’s Leads 19 • Problem: Sales believes marketing's leads don’t close and marketing thinks sales doesn’t follow-up on leads provided • Cause: Sales experience with leads is that they aren’t as closable as the leads they can generate themselves. • Solution: Sales and marketing agree on a lead definition that sales feels will justify being prioritized and will be able to close… and marketing routinely delivers a sales-ready lead that closes 33% of the time or better.
- 20. Today • Buyers arein charge – Able to find most of the information they need on-line BEFORE they engage with your sales team. – Comparison shopping and reviews are the norm – Consumer reviews, complaints and comments • 70%+ of the decision is typically made before sales engages – if you don’t leverage this fact the game is over before you know the game is on. 20
- 21. Lot’s of InfluenceLittle Influence Almost No Influence
- 22. Stage Messages • StatusQuo: “Did you know”? • Commit to Change: “Why its Worth It” • Explore Options: “Here are All Your Options” • Commit to a Solution: “Why This Option is Best” • Justify the Decision: “How to Build Your Case” • Make the Decision: “Everything you Need After You Buy”
- 23. 23 • 30% AnnualGrowth Rate • No Sales People • Part time marketing manager • 60%+ Margins • Small PPC Budget
- 24. Is This HowSales Costs Work? 24
- 25. Estimate of Costto Acquire a Customer 25
- 26. Exponential vs. Linear 26 Salespeopleare essential But they explode cost
- 27. One View ofCost of Acquisition (CAC) 27
- 28. High CAC =High Value, Pain & Urgency 28
- 29. Power of Content& Automation 29
- 30. Make it allEASY 30 Make it EASY for customers to educate and sell themselves Make it easy to engage with your company and offer Simple to understand product with POWERFUL value proposition Content to remove the stall & sticking points, and build a case The right content reduces or eliminates perceived RISK Enough content to support the level of scrutiny the buying process requires (iPad = low scrutiny while expensive & complex = High) Make it easy for sales to close the sale Content that facilitates the buying process – defensible case built Content for each member of the decision making unit – key players Make the first commitment easy Powerful Value Proposition Clear and believable ROI
- 31. 31 9 STEPS To lowercosts and more revenue
- 32. 32 4 START WITH4 – 9 1 – 3 will make more sense if we hit them later…
- 33. 33 4 ALIGN EVERYTHING Sothat the MACHINE produces a sales-ready lead sales can and will close reliably
- 34. 34 5 LINK Tie itall together … from the very start to revenue
- 35. 35 FLOW IS LINKEDFROM START TO REVEUE Sales Enters Here In This Model The Process Handles All This
- 36. 36 DRIVE THROUGH THECUSTOMER’S BUYING PROCESS Sales Enters Here In This Model Sales Usually Enters Here In This Model
- 37. Blend and Balance 37 •Generate Awareness (Outbound) – Outbound Email – Webinars – Events – PR – Telemarketing • Get Found (Inbound) – PPC/SEO – Fellow Travelers – Advertise – Content Customer is in Status Quo or Committing to Change Customer knows they have a problem and is Exploring Options
- 38. 38 6 AUTOMATE Make itall automatic…
- 40. 40 7 MEASURE “Certainly wewant good results, but management by results is not the way to get good results…work on the causes of results” “The New Economics” 1994 – Ch. 2 -The Heavy Losses-, page 33 - W.E. Demming
- 41. 41 8 TEST &ANALYZE Always, always, always be testing!
- 42. 42 Sabres were pittedagainst MiG-15s during the Korean war; many consider the MiG superior to the Sabre, but because of one tweak the American Sabre achieved a better than 8-to-1 kill ratio against the communist MiG pilots. MiG-15s Sabre Better than 8-to-1 Kill Ratio - WHY?
- 43. Observe, Orient, Decideand ACT = OODA 43 9 REVISE & IMPROVE Wire Hydraulics OODA Pilot Arm MiG 15s Sabre
- 44. 44 NOW… back tothe beginning: 1 2 3
- 45. 45 1 IDENTIFY the accounts,sites and roles in the decision making unit – Build the List • Who are our “Ideal Customers” at the account level? • Consider RFM (recency, frequency and monetary) • What roles constitute the decision making unit? • What titles imply what roles? • Where are they located? • How best to reach them? Hydraulics
- 46. Target Key Playersvs. Spray-N-Pray 46
- 47. 47 2 RESEARCH Interview customers,sales and product marketing to find the STALL & STICKING POINTS – UNDERSTAND THE CUSTOMER and their buying process! Hydraulics
- 48. Research 48 Lots of research…just not the right research
- 49. 49 2 CONTENT Remove the stalland sticking points in the buying process. Answer their questions. All to ENGAGE them to ENTICE and MOVE THEM through the buying process. This research process takes the much of the PAIN out of building content. Hydraulics
- 50. Fuel The BuyingProcess • An intimate understanding of the Buyer – Buying behavior – Likes – Dislikes – Sticking points – Stall points – Education needs • Understanding translated into content and nurture built from the customer’s logic and perspective… • Content that is relevant to the buyer and the buying process • Content that BOTH Sales and Marketing agree upon … is the key to generating volumes of sales-ready leads that close and do so with the minimum CAC. 50
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- 52. From This “No!”To This “YES!” How We Move From No to Yes Every request for action must be in the context of the value proposition!
- 53. 03 Value Force06 Construction Ultimately, you’re answering one key question: Why buy from you vs. the alternatives? Using the following formula…
- 54. Drives content, landingpages and any conversion point
- 55. Potential Claims ofValue Rank Potential Claims of Value Appeal (1-5) Exclusivity (1-5) 1 Minimum 20 years’ experience in marketing/sales/copywriting/SEO/technology and over 10 on marketing automation platforms 5 5 2 Specifically identifies the buying process and value proposition before defining or creating content 4 5 3 Actual interviews, resulting in content finely tuned to customer voice – content is more relevant and is thus consumed at a higher rate. 4 5 4 APG Guarantee – Agreed upon goals met or exceeded 4 4 5 Process and methodologies fully defined and documented – customers can rinse and repeat 4 4 6 Content designed to carry prospect all the way through buying process. 4 4 55
- 56. Value Proposition Example WhyAPG for Marketing Automation Implementation? Because Albertson Performance Group (APG) is the only company that conducts live interviews and exhaustive research prior to the definition or creation of lead capture and nurture content, producing content with a higher consumption and conversion rate. APG specifically ties all content to the actual customer buying process and customer value proposition, producing content that is more relevant to the prospect. With each consultant having over 20 years’ experience in marketing, sales, copywriting, SEO, and technology, APG is the only highly-experienced consultancy that can provide a formalized, documented process which enables a customer to rinse and repeat on their own. As a result, APG can guarantee results and has never been asked to provide a refund. 56
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- 58. Problems 1-3 • LEADVOLUME • LEAD CONVERSION RATE • COST TO GENERATE A CLOSED SALE 58
- 59. Every Stage InThe Waterfall Is Impacted
- 60. How? 60 1.IDENTIFY Identify peoplein purchase decision 2.UNDERSTAND Address their buying process and concerns 3.VALUE PROPOSITION Design actions to pull them through buying process & address concerns 4.ALIGN Ensure funnel actions lead directly to sales 5.LINK Link every funnel action to the next step 6.AUTOMATE Use software to automate (MAP AND CRM) 7.MEASURE Measure key funnel metrics 8.ANALYZE Identify sticking points 9.IMPROVE Brainstorm better enticements and ways to address concerns
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- 62. • The Winof This Shift: – More leads (research, content and nurture drive this) – Higher conversion to revenue of the leads we get (nurture) – Lower Cost of Customer Acquisition (CAC) – Ability to drive higher account life time value (LTV) – Sales and marketing alignment on definition of a sales- ready lead – Real word-of-mouth referral volume – We put our competition on their heels (rapid improvement iterations) – We can control our future (hands on the levers) 62
- 63. www.act-on.com | @ActOnSoftware| #ActOnSW Q&A Eric Albertson Founder and President Albertson Performance Group @bizleadgen
- 64. www.act-on.com | @ActOnSoftware| #ActOnSW Next Steps Need it today Interested in a demo Call +1 (877) 530-1555 Email [email protected] Web www.act-on.com • Ask about us on Quora • Collect tips from us on the Marketing Action Blog • Converse with us on Twitter • Circle us on Google+ • Follow us on Pinterest • Learn about us on LinkedIn • Meet us on Facebook • Watch us on YouTube
Editor's Notes
- #35 Consistent brandValue PropositionLanding pagesOffersNurtureBuying process messages
- #59 LEAD VOLUME – Research drives insight into the issues and offers that the target market will respond to at a rate higher than the status quo.LEAD CONVERSION RATE – Research based insights drive lead generation messages, offers, content and nurture that enable the market to engage and build a defensible case to buy.COST TO GENERATE A CLOSED SALE – Lead volume and higher conversion rates allow sales role to steadily move further to the end of the sales funnel while simultaneously increasing the over all volume of closed sales.