Customer acquisition costs (CAC) details the cost amounted towards acquiring a customer. It includes the resources and capital spent to attract and retain a new customer.
These costs can be detrimental to a growing B2B software, as it stands in the way of their company’s development. Hence why we believe customer marketing can help reduce these costs.
Customer marketing strategies aim to increase customer loyalty and retention. When it comes to customer marketing, the success of the strategy depends on the profitability of the customer segment, the capacity to perceive the impact of the product’s success and the ability to build coherent and convincing communication.
Many B2B SaaS companies struggle with the increasing costs of acquiring new customers and potential raise in churn rates. This happens often because existing channels meant to develop the relationship with customers, do not take a sales-driven strategy approach.
But even so, customer marketing can be used to reduce the costs of acquiring new customers, with an extreme focus on improving customer experience and elevating their satisfaction.
We have gathered 4 main customer marketing strategies you can use to reduce customer acquisition costs.
Focus on active customers
You can reduce the cost of new customer acquisition by reducing the number of resources spent to develop new customers. This can be achieved by measuring the impact of your current customer marketing strategies and engagement practices and shift your focus to customers who actively interact with your company and repurchase your products.
You can create an ideal buyer persona to help identify the qualified customers who visit your website or communicate with you on your social media platforms. This will help you point out the active customers and strategically focus on their needs and preferences and make them feel like their satisfaction and experience are important to your company.
By prioritising the right customers who are most likely to become long-term customers, you can better allocate your resources and better target your marketing campaigns, personalise communications and provide them with unique social interactions and extensive customer service.
Use customer advocates
The important thing to remember is that developing a trusted customer advocate requires you to put more effort into the relationship with your customer. Building loyalty is not enough. You need to build trust and create a mutually valuable relationship to influence buying decisions of customers.
Investing in customer advocacy enables you to strengthen your customer base, improve customer service and make your company more trustworthy and influential. You can use the following three steps to help build a stronger relationship with a customer advocate:
Your advocates should have the power to influence, guide and suggest your products to potential customers and they can be the voice of your company. The best way to create a bond with your advocate is to give them a clear value proposition and provide them with exclusive content. This will put them in a position to provide a great service to customers and push them towards conversion and loyalty.
Go beyond the marketing funnel
Customer marketing strategies can help you boost the awareness of your brand among customers. The most effective B2B SaaS companies empower their customers to play an important role in product development and encourage them to speak with you on their own terms. These B2B software companies offer their customers online tools and channels such as social media, blogs and webinars to better understand their needs and listen to their feedback.
By working with your existing customers, you get to invest in improving their experience with your company and have a higher influence over the customer journey outcome. This is an opportunity to build an extended relationship with your customers that end up as loyal customers.
By listening to your customers and solving their issues, you get to be closer to their decision-making process and retain them because your company is there to serve them. By identifying their needs, expectations and pain points, you can help them find the right products and services they need.
Some B2B SaaS companies are using data to understand the buying process and improve the customer experience. There is a growing interest in the use of predictive analytics and machine learning in customer marketing which provides necessary insights to engage and convert the most promising leads and reduce the costs of acquiring new customers.
Leverage AI and Chatbots
Automated customer service and self-service messaging help to reduce the cost of acquiring new customers. Modern technologies such as AI (Artificial Intelligence) and chatbots help to lower customer service costs by focusing on the questions customers ask and eliminate the need to manually answer them.
Chatbot technology can be used to personalise communication with customers, providing them with a more pleasant experience. The technology includes voice recognition and natural language processing, which enables it to adapt to different conversations and learn from past interactions.
In addition to lowering customer service costs, chatbots can also be used to track product usage and ensure a good level of customer experience and loyalty.
Providing self-service means that potential customers can access information and products online without having to speak with a human or wait for an answer from a live chat support agent. This approach can help reduce customer acquisition costs by sparing resources and ensuring your existing customers are always receiving the best service and that your serious B2B leads are filled with the confidence to invest in your products to achieve success.
Conclusion
Overall, with proper customer marketing tactics, you can reduce the cost of customer acquisition and increase your revenue. The most effective way to reduce the cost of customer acquisition is to focus on providing better service and customer experience. This focus will ensure your current customers are happy and give potential buyers the push to purchase your products, just by seeing how you treat your existing customer base.
