How to Control Spending per Client
June 8, 2018
Never miss an articleSign up for weekly content
Saving money and optimizing costs are some of the essential roads to small business success. It’s a no brainer: the more money you save, the more you can spend on something else.
There are countless ways to save money: order in bulk, source supplies from overseas, or choose low-cost service providers like Veem for essential business tasks.
It gets trickier when you want to control the money you spend on clients. After all, acquiring and retaining clients is the most important thing for your business’ survival.
But it gets trickier when you want to control the money you spend on clients. After all, acquiring and retaining clients is the most important thing for your business’ survival.
How can you measure and optimize the funds you spend on them? Read on for our secret tips.
Your client acquisition costs (CAC) metric shows you and your investors how much you spend on acquiring a new client. Since this is one of the most important costs your business faces, it’s vital you optimize your spending and lower your CAC as much as possible.
It’s a fine line though, because you still have to attract new clients.
Track Your Campaigns
Measuring which ads earn you the most clicks and conversions (when a visitor becomes a client) is crucial for learning about the actual success of your campaign.
Use Google Analytics or a similar tool to help you track the performance of your ecommerce website, as well as your digital marketing campaigns. Measuring which ads earn you the most clicks and conversions (when a visitor becomes a client) is crucial for learning about the actual success of your campaign.
Cut Ineffective Ads
Once you learn which of your campaigns are the most successful, you can pause, or even cut, the underperforming ones.
This includes locations as well. Check out where your ads attract the most attention and cut the rest. For a start, target cities or regions instead of whole countries and measure your success rate.
Don’t Forget Remarketing
Remarketing or retargeting, meaning when an ad “follows” a visitor who abandoned a particular website, is a highly effective way of reducing CAC. Since the visitor is already familiar with your product, reminding them of its existence a little while later increases the chances of conversion.
Since the visitor is already familiar with your product, reminding them of its existence a little while later increases the chances of conversion.
Tracking is very important here, as well: it’s more effective to retarget visitors who already started (and for some reason, abandoned) a shopping cart than those that just briefly clicked on your site.
Enhance Your Website
Don’t let technical issues stop your visitors from becoming clients. Nobody likes waiting for a website to load, or unreadable, jumbled-up graphics. Make sure your website is as user friendly as possible, and optimized for all devices (cell phones, tablets, and computers).
Offer easy payment options and be upfront about other costs, like shipping. Visitors can get annoyed with hidden fees jumping into their cart at the last minute, which may cause them to abandon it.
After acquiring a new client, you know you can’t lean back in your chair: retaining that client is just as important, if not more.
Quality customer service costs a lot of money, and many small businesses may not be able to afford it. But don’t worry: there are a number of ways to reduce customer service costs per client and still make your customers happy.
People generally like to be able to solve their own problems. Include a detailed self-help section on your website that walks your customers through the most commonly experienced issues and their solution.
Include a detailed self-help section on your website that walks your customers through the most commonly experienced issues and their solution.
Make sure that this self-help section is visible on your website and as user-friendly as possible. For example, don’t use technical language an average person wouldn’t understand, or if you can’t avoid it, explain all terms in plain English.
Chat and Email
Offer email and chat options for customer service. These are more cost-effective than the phone, and many clients prefer the online chat to a phone call.
If you need to hire a support team, consider having some (or all) of them working remotely. This saves you both overhead and salary costs, since it allows you to hire people from countries with lower wages.
If you need to hire a support team, consider having some (or all) of them working remotely
When hiring a customer service team, make sure they have the right attitude: they need to be helpful, emphatic, warm, and quick thinkers.
For tips on finding, training, and managing remote workers, read our blog How to Find, Train, and Manage Offshore Workers.
Provide Low-Cost Service Options
Another effective way to reduce costs per client is providing them with low-cost service options. Like international payments: sending a transfer via your bank is costly and time consuming.
Instead, try Veem.
Veem creates a direct connection between you and your business partners, cutting out the middlemen and eliminating hidden fees and unexpected delays.
Veem allows you to track all your transactions, and charges no wire fees.
Sign up for a free Veem account and cut your operating costs.