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Is Cost-Per-Customer The Next Challenge for B2B Marketers?
Is Cost-Per-Customer The Next Challenge for B2B Marketers?
The cost-per-customer is very important when undertaking in the B2B world since it determines the success your company can achieve, as well as the direction and approach you have to take for your marketing.
In this article we will explain in detail what it is, and why it can be a very important challenge to your company.
What Is Cost-Per-Customer?
The cost-per-customer is the tool you have to determine the number of customers you attracted to your company, store, or establishment concerning the cost of advertising, cost of product production, and salary of employees required for that customer to go there and buy that product.
It is very easily determined by the sum of what you spent on advertising, the salaries and how much it cost you to produce that product. Then that's going to divide the sum of customers that came in and bought daily, monthly, and annually.
The result of that operation will be the cost-per-customer of the company or store.
Why Is It So Important?
The importance of the cost-per-customer lies in the mere ability of a business to attract the largest number of customers as cheaply as possible so that the balance is positive and the company does not lose money.
This can determine the viability of a company because if you get a negative balance you can talk about the investment not being sustainable, making the profits and purposes of the company can be compromised and prone to failure (This depends a lot on the products sold and profits). If a neutral balance is obtained, it can be determined that the entire investment is unsustainable, so it has a lot of room for improvement. On the other hand, if a positive balance is obtained, the expectations were exceeded and the investment can be spoken of as a success (This also lends itself to interpretation depending on the income).
Importance in B2B
In B2B Marketing, the importance of this lies in what medium you use to advertise, and how much money it costs you to promote your products out there. Most sellers use social media to advertise both their companies, products, special promotions, and any information regarding the company due to its low cost.
As in the previous point, it also influences your level of attracting retail and wholesale entrepreneurs, as well as casual buyers to your products. If you achieve a good reception for your product, each customer can recommend you to other companies or people, which means more customers and also more money.
Social Medias are Your Friends
Most social networks do not charge for publishing with any type of advertising (except those that are directly from the website). Some offer paid plans so that your publication is seen first and reaches more people so that there is more probability that buyers will see it.
If you want to get a contract with a company to be their supplier, you can also search the profiles of these companies in social networks and offer them your products. Most large companies have very active social networks and are on the lookout for new suppliers to expand and optimize their business.
You must have in mind attractive marketing in social networks, you must constantly make publications, also contact other sites to advertise and thus attract more people, and this is when the cost-per-customer comes into play.
When investing money in advertising you have to be aware of how much money you have to invest and how much profit it can bring you. Generally, advertising on social networks is not very expensive, but you should also think about what profile you can ask for that service and the reach it can have. Depending on that, you can determine the range of public reach of your products, and therefore how many new customers you will have.
Tips To Keep the Cost-Per-Customer Down
If you have high expenses and want to reduce them, here are some tips to increase your income and customer base:
Identify the Shortcomings in Marketing and Improve It
Many make this mistake, as they do not target the people they should. Boring, dull, or untargeted advertising for the right audience is a guillotine that can end your business.
You must sit down and evaluate what kind of customers are the most abundant in the market, find the shortcomings that your current marketing may have when it comes to attracting this audience, and focus all the advertising towards that direction. If you do this step correctly, people will start to be more interested in your products and you will have more sales.
Stay Active in Social Networks
The key to social media marketing is the quantity and quality of your publications. An active account with compelling advertising tends to attract much more attention than one that doesn't do both.
The key to advertising is to sell a product to someone as if they needed it, so there lie elements such as the presentation of the product, the type of advertising, the target audience, whether it is catchy or attractive, etc.
Try to make several daily publications, offer promotions, contests in exchange for likes or followers. These interactions are the key to empathize with your customers, and at the same time, give demand to your product.
Study Your Rivals and Try to Be Better Than Them
In the field of social network sales, you will not be alone; there will always be competition from one, two or more companies selling the same thing as you.
The client will be able to easily compare the profile of rival companies with that of your company, so you should study their sales methods, advertising, promotions, prices, and everything else about their advertising.
And more than imitating it, you must overcome it. This will help you stand out from your competition and gain ground in terms of sales.
So, Is This The Challenge B2B Marketers Are Going To Face?
The cost-per-customer is something extremely important, and it must be addressed in the best way if you want to succeed in the world of B2B. As the world changes and the way of doing business goes digital, so if you want to be an entrepreneur or promote your products through B2B, you have to be aware of everything that has been said so far.
While there are other things to worry about, the cost-per-customer seems to be one of the most important (if not the most important).
After analyzing everything previously exposed, we can conclude that cost-per-customer is a significant challenge for people who want to enter the world of B2B.
Therefore, we suggest our readers read these tips well and put them into practice to succeed in this world of entrepreneurs.