How much does it cost you to get a new customer for your business?
We asked this questions to one of our clients the other day. He didn’t have an answer which isn’t necessarily a bad thing for a new company or even an old company. However, for a company trying to figure out where to put some of their add money to get the best results, this is a very, and maybe the most important question to be able to answer.
How much does it cost my business to aquire a new customer?
I am not a math wizard, but there is a simple equation to figure out what that cost is.
Let’s say that you are getting 25 new customers a month that is our base number.
Let’s say that you are spending 1500 a month in Website Developmetn Costs
The life time of that site will be about 24 months give or take.
Your monthly promotion/advertising costs are about 1000 dollars, which i depending on your business is low.
Your monthly maintenance Costs are 500 dollars.
You take all of your costs and divide that number by the ammount of customerers you have in ths example it would be
($1500/24) + 1,000.00 + 500.oo = 62.50 per customer.
Now 62.50 migh be high or considerably low depending on your cost of service. If your customers spends 100$ every other month that ROI is awesome. if your customer only spends 50 dollars every six months you need figure out a better way to find customers or up your price.
Many small business don’t figure out this number, they just know that they need to perform X number of jobs to stay in business.
Once you know the costs of acquiring a new customer, you can start to identify where you customers are coming from.
Service Marketing Ideas is a full service marketing company that specializes in Google Places Management and Local Citation Building. Contact us today 801-903-1033
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