Is it practical to spend more money to acquire more customers?
Updated: Sep 24, 2019
If you aren’t offering real value, your customer acquisition efforts could backfire with negative reviews and poor reputation.
It’s not always practical to keep building your customer acquisition efforts. There are pros and cons you need to think about. A problem with your CAC strategy could indicate an issue with your business model that needs to be fixed, not a need for more customer acquisition spending.
Pros Gets the word out about your brand Builds trust as more people learn about your brand More opportunity for growth because you’re acquiring more customers
Cons If you aren’t offering real value, your customer acquisition efforts could backfire with negative reviews and poor reputation. You may neglect your already loyal followers in favor of winning over a large audience – which could mean you lose some of your original customers. When it comes to customer acquisition – you want to be lean, efficient, and strategic. Put your resources into customer acquisition, especially as you’re starting out, but keep an eye on your CAC metric. If you’re not getting the revenue generation you should be getting from your efforts, you may need to cut some costs go back to the drawing board and find a way to give your audience better value. Then, you can move back into full-steam-ahead mode with attracting your audience and growing your business. If all else fails take a deep look into your P&L sheets to cut cost.
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