I hear people all the time tell me they don’t know how effective their marketing is.  And they use all types of tactics and strategies to generate clients.

But they don’t track closely and they don’t analyze and compare once they have the data.

One of the best ways to compare different marketing tactics / strategies is to use client acquisition cost.

What is client acquisition cost?  It’s the cost to acquire 1 client.  You get the number by dividing the total dollar amount spent for that particular strategy by the total number of clients acquired.

Example:  If you spent $100 and you landed 5 clients, your client acquisition cost would be $20.

This may be good or bad (depending on your profit margin and the lifetime value of a client).

Below is an example of one of our clients.  They weren’t tracking their marketing.  When we helped them set up a tracking system, we showed them the results of client acquisition.

They were completely shocked that their radio was costing so much more and really not delivering.  And they had hired someone to do their social media on a monthly basis, but they just weren’t getting results (but they were killing it on their email, PPC, and social media PPC).

We were able to SIGNIFICANTLY INCREASE their client acquisition while SIGNIFICANTLY DECREASE their total marketing cost.  We allocated the dollars from their ineffective programs TO the effective ones (and we helped them tweak their PPC to get an EVEN BETTER return).

If you track client acquisition separately and analyze the data, you can make every piece of your marketing more effective.