BizSugar.com › Management › Small Business Growth Strategies: Customer Acquisition

The initial step in determining the best strategy is to compare the two options. This process begins by getting a handle on current customer acquisition costs. How much does it cost on average to win a new customer? This cost is calculated by tallying up all marketing, selling, advertising, and incentive costs related to customer acquisition for a period such as the previous calendar or fiscal year. In some cases there could be hardware costs as well if customers require a box or handset to utilize the service. It’s important to do this calculation correctly for the company in question as each business entity will vary. This total expenditure is then divided by the number of new customers attracted during the same period. Let’s say, for the sake of example, that the acquisition cost per customer came out to $400 last year.