How to minimize customer acquisition costs

Duct Tape Marketing

How to minimize customer acquisition costs written by Guest Post read more at Duct Tape Marketing. If it costs too much to bring in customers, you’re quickly going to find yourself treading water. First, it helps to determine what you can afford to spend on customer acquisition.

Creative ways to scale SMB customer acquisition


The bigger you get, the higher your customer acquisition costs go. Hubspot : Hubspot is a great example of several powerful customer acquisition tactics. The post Creative ways to scale SMB customer acquisition appeared first on StartupCFO : Mark MacLeod.

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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of the startup. The common mistake acquirers make is treating all acquisitions the same. Predicting Success or Failure of an Acquisition.

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

However in all these articles, I have not seen any discussion about what I believe is the second biggest cause of startup failure: the cost of acquiring customers turns out to be higher than expected, and exceeds the ability to monetize those customers.

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Customer acquisition cost.

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business?

Duct Tape Marketing

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business? Marketers spend a lot of time and energy looking at the metrics that illuminate the costs of finding new customers and keeping current customers. Compute the cost of a prospect the same way.

Refining your Customer Acquisition Cost (CAC) Ratio

Cracking the Code

CAC ratio = [GM (Q4 13)- GM(Q3 13)] x 4/ S&M costs (Q3 13) (GM: Gross Margin; S&M: sales and marketing) CAC ratio based on CMRR While very easy to calculate and benchmark, this formula can be refined at different levels. In this case, your effective S&M costs = S&M costs x 70%.

Building It Is Not Enough: 5 Practical Tips On User Acquisition


Stories about the growth of "hot" startups such as Facebook, Instagram, AirBNB, and others have created a belief that if you build the right product, customer acquisition will be easy. Finding scalable acquisition channels is a time consuming and strategic effort.

The economic logic behind tech and talent acquisitions

Chris Dixon

You therefore need to estimate the cost of delay (delaying the 10% increase in revenue) and failure. If you want to sell your company – or simply understand acquisitions you read about in the press – it is important to understand how they think about these calculations. There’s been a lot of speculation lately about why big companies spend millions of dollars acquiring startups for their technology or talent.

Can Paid Customer Acquisition Work With Freemium?

Software By Rob

I received the following question from a reader: I was wondering if you had any thoughts on cost of customer acquisition for freemium businesses. quite hard, but I don’t think paid acquisition could possibly work here. Photo by stevendepolo.

An Acquisition Without the Acrimony?

Inc Startups

Lots of acquisitions lead to redundancies, lay-offs, and ultimately unhappy marriages. Most acquisitions are designed to fuel growth. Walk me through the acquisition reasoning. We saw the acquisition as a way to grow our core business in a meaningful way.

Starting a Web Business with Less than Your Monthly Rent (The $ by $ Guide)

Up and Running

These marketing automation platforms cost around $40 a month. If people have purchased your product, did you make enough money to cover your variable unit cost? If you are selling a product for $100 and it costs you $90 to make your gross margin is $10 or 10% (10/100).

The Remarkable Cost Of Poor Customer Support On Your Bottom Line


The Remarkable Cost Of Poor Customer Support On Your Bottom Line. Poor customer support costs US businesses $84 billion a year! Most companies choose to dedicate more attention and resource to customer acquisition, instead of retention.

This Unusual Startup Strategy Led to a $200 Million Microsoft Acquisition

Inc Startups

Listening to typical startup advice would have cost these entrepreneurs millions

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The Inside Story of a Small Startup Acquisition (Part 3)

Software By Rob

This is final installment of a 3-part series covering my acquisition of HitTail. Could you talk a bit about the diligence you did during the acquisition? I would love more information about the acquisition process. My best acquisition in terms of payback was around 4 months.

Kindred Disciplines: Growth Equity and Growth Hacking

Non-Linear Growth

Growth hacking definitions abound , but generally emphasize a data driven, creative and flexibly opportunistic approach to customer acquisition. When I hear “marketing”, I think soft, fuzzy, ambiguous, and cost center.

The Hidden Costs of Customer Attrition

Inc Startups

It may surprise you just how much each lost customer is costing your business. In a telecom sector with high fixed costs and 15 percent to 20 percent annual price declines, the client needed the incremental customers, but it could not fill the leaky customer bucket quickly enough.

7 Ways to Cut Your Turnover Costs and Boost Morale

Inc Startups

When you pay more attention to your raw materials than you do your talent, what you end up with is people that aren''t as productive as you need, aren''t as happy as they should be, and turnover that is high and costly. Don''t focus on cost, but on employee value.

Paid Customer Acquisition for SaaS, Simple Diagrams, the True Cost of Commuting, and more…

Software By Rob

When Does Paid Acquisition Work for SaaS Startups? The True Cost of Commuting – “You Could Buy a House Priced $15,900 More for Each Mile You Move Closer to Work.” – The right question to ask, with a solid analysis. Simple Diagrams – If you need to create simple diagrams quickly, Simple Diagrams is supremely cool. Love the UI. ” Ouch.

Lean Marketing: Basic Metrics You Should be Watching. Now.

crowdSPRING Blog

Customer Acquisition Cost. The important thing is to understand how much it costs you to acquire a single customer. The result of this simple is your CPA, or Cost per Acquisition and this is the key to understanding whether your marketing tactics are working for you or not.

7 Easy and Effective Customer Segments to Target in Facebook Ads


Facebook ads are based on an ad auction system , so increased competition drives the cost of using the platform up. Facebook Custom Audience campaigns will help you cover the gap, and get some real mileage out of your acquisitions.

Marketing Beyond Acquisition


In my conversations with people in the startup world – from angel investors through entrepreneurs and employees with vast startup experience – I often hear about their perceptions of the marketing role as being pretty limited to acquisition. Second – timely, cost-effective customer acquisition is a matter of life-or-death to most startups.

Sales for Startups: Lead Acquisition, Source & Execution

Mark Birch

There are three components to consider when discussing leads: Lead Acquisition - This is HOW you came to obtain leads, or in other words the process. This is important to understand as you measure the cost and effort required for each lead acquisition strategy you employ.

Factors To Consider When Creating An Acquisition Strategy As A Tech Startup


For most of those that manage to grow big, acquisition of other companies plays a major role in their success. While many businesses are aware of the importance of importance of acquisitions as a growth strategy few get it right when making acquisitions. by Cameron Johnson.

9 Fresh Startup Customer Acquisition Ideas

Early Growth Financial Services

We asked successful founders from the Young Entrepreneur Council to name some unusual—or at least lesser-known—customer acquisition strategies they’ve used recently to strong results. Visit Popular Conferences If you are a seed, or even a funded start-up, you may not have the resources to attend some of the big-name conferences (which can cost up to of tens of thousands of dollars). Originally published in Inc.

6 Rules for Strategic Acquisitions

Inc Startups

Mike Volpi led 75 acquisitions during his 7-year stint as chief strategy officer of Cisco. And both buyouts come on the heels of Yahoo’s high-profile acquisition of Tumblr for $1.1 Choose one goal and tailor your acquisitions accordingly. "At

Part II: Making the Most of Your Metrics

Guy Nirpaz

The ratio number will naturally vary by industry, but you need to make sure it’s under control, i.e. the number of qualified leads should constantly be growing; this will essentially lower acquisition costs (a fundamental parameter in business sales of a SaaS company).

Conversion: The Most Important Internet Metric of All (Revisited)

Internet analytics can be roughly broken down into two simple activities – customer acquisition and customer optimization. Nearly every Internet company on the planet has invested in some form of the first activity, customer acquisition.

Steve Blank: Why Corporate Acquisitions of Startups Fail

Inc Startups

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of their startups. The common mistake acquirers make is treating all acquisitions the same.

No. 1 Reason Acquisitions Fail

Inc Startups

An acquisition can provide a successful avenue for growth and obtaining competitive advantage. But many acquisitions end up as failures for the buyer. Why do acquisitions fail? How dependent are we on “synergies” to make the acquisition work?

Rising App Marketing Costs Create Challenge for Start-Ups

Inc Startups

As the number of mobile app downloads increases across the United States, the cost for app developers to gain loyal customers has risen to its highest rate in two years , according to a new study by Fiksu.

SaaS CEOs: Measure Customer Engagement – Increase Conversions & Lower Churn

For Entrepreneurs

The goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC). Building for Success SaaS Sales & Marketing Machine Startup Help churn churn rate Cost of Customer Acquisition customer engagement SaaS business SaaS churn SaaS churn rate SaaS customer engagement saas marketing SaaS sales SaaS VC

Holvi to open in 19 European countries, staff acquisitions in three


According to Holvi, traditional banks have been unable to serve small businesses due to their cost structure and business model of hidden fees rather than upfront charges.

Optimizing the Free Trial Signup – How Flow Got a 17% Lift [Case Study]


Depending on your cost per lead acquisition, as well as conversion rates per traffic source, you’ll want to spend time A/B testing the amount of information asked for, the way it’s asked, and the order it’s asked in (among other things), while prioritizing specific sources.

The truth about onboarding costs

Version One Ventures

High onboarding costs are often seen as detrimental to the long-term scalability and profitability of an enterprise business but it is worthwhile taking a second look – here are some of the advantages of investing in an extensive onboarding process: Reduce churn as users better understand the depth and breadth of the product, and are therefore “hooked”. If you do a good job on scaling your onboarding, all these benefits will more than make up for the additional costs.

@altgate » Blog Archive » Switching Costs


Last month, I said F-it and decided to switch to WordPress no matter what the cost. One great example of how TypePad created switching costs is how they deal with photos. Switching costs.

6 Tips To Help Entrepreneurs Win And Grow A Strong Customer Base


For Pushpins’ founders, one of the hardest parts of selling to corporate decision-makers was convincing them that using Pushpins would not cost them their jobs. Advice For The Young At Heart customer acquisition John Vrionis Lightspeed Venture Partners Pushpins startup advice

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Organic Growth Startups Won’t Scale Competitively

Startup Professionals Musings

Non-organic growth would include OEM relationships, finding strategic partners, “coopetition,” as well as acquisitions. Even mergers and acquisitions (M&A) came quickly. acquisitions business entrepreneur growth mergers organic growth

Acquisition or Partnership? How to Decide

Inc Startups

Is an acquisition or partnership a possibility in your future? In both of these cases, either an acquisition or a partnership would be appropriate. What could be a better acquisition candidate?

Five Tips For Startups To Reduce Customer Churn


Finding new customers costs time and money. But as the company grows, it’s important to make the transition from acquisition to retention. Professionalisms customer acquisition customer retention John Rode sales sales lead management