I don’t need to tell you as a small business owner that you need to be aware of all of your numbers, including those for customer acquisition. So, the question becomes as it relates to numbers how do you know if your customer acquisition plan is working?
Is it the number of new customers?
Amount of money spent on sales and marketing?
Reduction in the amount of money spent on sales and marketing?
Effectiveness of lead generation efforts?
Well you’ll have to continue reading the remainder of this blog post to find out.
Can you do that?
Does that sound good to you?
- What’s in it for you if you do decide to take the plunge instead of turning away?
We’ll give you a tool that you can use to measure whether your customer acquisition plan is working and you’re maximizing your time and resources.
Tool you can use to measure if your customer acquisition plan is working
Before we dive into the nuts and bolts here.
What is the definition of a customer acquisition plan?
What makes up a customer acquisition plan?
A customer acquisition plan consists of the steps you take to acquire a new customer for your business.
Your customer acquisition plan is made up of marketing to generate leads, and sales to close those leads. Simple. End of story.
Cool. Glad you’re following along so far.
Before I forget. You need to read this awesome sauce blog post written by none other than myself in reference to customer acquisition plan(s) and why they’re important. So, go give it a once over and come right back to continue reading this blog post.
Recommended Reading: Customer Acquisition Plan and Why You Need It
Can you do that for me please?
Sweet. Thank you for that my fellow business owner.
It does not matter what your marketing strategies are that you use as part of your customer acquisition plan, you can still use the tool that I am going to share with you.
What are your thoughts?
What do I mean by your marketing strategies?
They can be any of the following or a combination of any of them.
- Content marketing – blogging to be specific
- Video marketing – YouTube
- Pay-Per-Click marketing – Google Adwords, Bing, Yahoo, Facebook Pay-Per-Click, YouTube Pay-Per-Click, Twitter Pay-Per-Click
- Word of mouth marketing
- Online networking – blog commenting
- Offline networking – Meet Up groups, local Chamber of Commerce
- Guest posting on a popular blog or website – i.e. Forbes, Entrepreneur, etc.
You need to stop reading right now and direct your attention to a great blog post that the only me – Kurt Kummerer wrote that is worth at least a glance. So, give that blog post a glance as long as you come right back here to this one.
Recommended Reading: Types of Customer Acquisition Strategies That Will Improve Profitability
Now, that you’re back from checking out that blog post I just mentioned, let’s get down to business.
This tool we’ve been talking about you’re probably wondering what the heck is it already.
Stop beating around the bush will you pal and tell us already.
Fine. Here you go.
This will shock you to say the least my friend so try not to fall out of your chair.
Profit and Loss statement
Profit and loss statement as a means to measuring the effectiveness of your customer acquisition plan
Have you heard of a profit and loss statement before?
Do you currently use one in your business?
Do you know what a profit and loss statement is? (I am not trying to offend you by asking you this question, but some business owners do not know what this is and/or don’t use one).
Are we on the same page?
Okay. Good stuff.
You would utilize your profit and loss statement specifically for your customer acquisition plan and whether what you’re doing is actually working.
Why is this effective in measuring whether your customer acquisition plan is working?
[tweet_box design=”default” float=”none”]Your numbers tell the story and they do not lie.[/tweet_box]
If you have more loss than profit as it relates to your customer acquisition expenses for the month, well whatever you were doing for that month did not work.
Does that mean you abandon ship using those marketing strategies after one month?
It will come down to how deep your pockets are and what sample size you deem as appropriate in order to make a determination on whether to keep going or abandon ship.
What would I recommend you do in order to make that determination?
The year is made up of 4 quarters. I would use 1 quarter as your benchmark.
If after one quarter your marketing strategies that you’re currently using as part of your customer acquisition plan are yielding more losses than profit, then abandon ship on those strategies and come up with new ones.
After you come up with new strategies, start again for the next quarter to see if they will work.
What happens if the new strategies do not work?
Start over. Like we just discussed.
What do you do if they do work?
Wash, rinse, repeat!
Can you make that happen?
Sound like an easy enough thing for you to do?
I should hope so.
If this is too cumbersome for you, I suggest you turn the lights off, walk out of your office, and never come back. Sell your business as you’ll never make it.
You know what I mean?
So, that is the tool you should use to measure if your customer acquisition plan is working.
Remember numbers tell the story of whether something is working and they do not lie.
Would you agree?
Do you have a customer acquisition process in place for your business?
Is that process working?
Is that process efficient?
Is that process cost-effective for your business?
If you could improve that process would you?
Do you need help in figuring out which parts of your process should stay or go?
If you’re answering “Yes” to all of these questions then my hats off to you. Business must be awesome!
Otherwise you and I should talk. Let’s see how I can get you to where you want to be.