One of the most important concepts that we focus on as marketers is the “CPA” also known as the“cost per acquisition.” If you are in business, you need to know how much you are spending on your marketing efforts and know exactly how many leads, calls, emails, store visitors online sales that specific marketing strategy is generating for your business. Once you know this number, the next thing you should be asking yourself is how can I minimize it and how can I increase it.
When we meet clients for the first time, and we ask them what their CPA is, they literally have no idea. So the next question we ask is what marketing are you doing and how much business is that bringing in for you. Customers will often tell us that they are either not spending any money, meaning their business is slowly going under, or they are spending thousands of dollars on marketing, but it's not actually working.
Sometimes customers will tell us that they are spending5-10K on industry famous magazine ads and when we ask them how many clients they get per year, essentially it costs them thousands of dollars to get a handful of leads.
When we come in and set up our online marketing campaigns either on Google or Facebook, after the end of the first month, we go back to the client and show them that we were able to get them leads for a fraction of the cost they were paying before. As a result, they are usually blown away by the performance of their new digital marketing campaigns. Once they see the power of what online marketing can do for their business, our clients can expand their businesses very quickly and start hiring more staff as their business grows.
When it comes to online marketing, initially the cost per lead is going to be higher since every business is different and competition varies from location to location. We show clients that if they continue marketing with us on a monthly basis, we can actually make updates to our campaigns and performance-enhancing tweaks on their website that is going to help them improve their conversion rates on a monthly basis. As we accumulate more data on what strategies work best for their specific business, we trim and remove underperforming campaigns.
After we carefully analyze the data from the previous months, we can funnel more of your advertising dollars to higher-performing strategies. Time and money are your allies when it comes to online marketing, you need to be committed to the process, and if you are patient enough, eventually you will reach a point where your campaigns are generating tons and tons of leads at a very lost cost. Now you have the opportunity to scale your ads and really start bringing in some serious revenue for your business.