Back of the Envelopes are designed to be oversimplified calculations that reveal bigger truths. Today's topic is customer acquisition costs using social media
Why turn to social media? Phone calls have a lower yield due to the combined effects of WFH, COVID, and the robocall induced fear of answering incoming calls from unknown new numbers.
How about social media? Let's assume a goal of 10 new customers. It takes 40 opportunities to get those new customers. It takes 75 contacts to get an opportunity, so you need to make 3,000 contacts.
Your outbound company specialized in LinkedIn. Let’s just assume, you can put out 50 LinkedIn connection invites a day per account. That means you need 60 business days to make those 3,000 contacts – or 12 weeks.
An SDR at $20 per hour’s going to run $3,600 a month. There’s account management, writing, and other management. $5k or $6k a month for this resource isn’t unimaginable. Add in all the other costs like management, creative, etc. The outbound agency might charge $10k or more, assuming the metrics hold, and the prop is good, and your product/service is competitive.
At 12 weeks, we'll assume that amounts to 3 months, you've spent $30,000. Assuming everything went right, that's $3,000 to acquire a customer. That's not a bad number if you've got a high enough ticket price.
If you'd like to discuss customer acquisition costs set up a time with one of our senior analysts – www.ekalore.com/contact
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