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How to Create a Look-a-Like Audience for Content Marketing to Decrease CAC, and Increase Profit One way is by creating a content strategy using a look-a-like audience. How can you decrease your cost to acquire a customer? Now you know what your CAC is for your blog. Need a more precise model? Read Brian Balfour’s article, “ How To (Actually) Calculate CAC.” It’s very SaaS-focused, but it can apply to any business. While these numbers will never be exact, the goal is to get a better idea of what’s happening in your business. If you don’t know how to do this, keep to the simple formula given above. This can help give you more precise numbers.
For example, you can calculate your sales lead time, new customers vs returning customers, and freemium SaaS costs. There are more complex numbers and formulas you can use. Instead, estimate a percent, and move on. The developer may spend 10% on SEO, and 90% building your tool. Some of these resources may be used for other parts of your business too. Mailchimp, Convert Kit, or Aweber), web hosting, landing page software, opt-in software, SEO tools, and any other monthly expenses.
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Freelancer/consultant costs, whether you outsource your marketing to a VA, or hire a professional to improve your program.Salary costs, of anyone who writes the article, promotes it, does SEO, adds graphics, developer time, sales time, ads to promote content, and so on.To be more precise, you will want to calculate these expenses related only to content marketing. So how do you calculate the cost to acquire a new customer?ĬAC = Total Marketing Expenses + Sales Expenses / # of New Customers Acquired. As business managing consultant Peter Drucker once said, if you can’t measure it, you can’t improve it. And if you don’t know your numbers, it’s hard to know if the time is worth the effort. One reason you and I have a tough time staying focused, whether for business or pleasure, is because we don’t see progress. Raise your hand if you ever made a New Year’s Resolution you did not keep. How to Calculate Your Content Marketing Cost to Acquire a Customer So it's not surprising that the CAC for content marketing has been increasing too.īefore I share some of our trade secrets, let’s make sure you have an idea of what your content marketing ROI and CAC is, so you know if it improves. This should not be a surprise to anyone who studies the history of marketing.Īs Andrew Chen, general partner at Andreessen Horowitz observed, every marketing channel becomes less effective over time.
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