Freight Forwarders: What Is Your Cost of Client Acquisition?
If you were about to descend the face of a dangerous mountain, and someone offered you a safety harness, would you refuse it? Of course not.
And yet it happens all too often in our forwarding industry, management often start down this treacherous trek without a harness. Here is a recent quote from forentreprenuers.com:
“Not Managing customer acquisition costs (CAC), is like descending the face of a dangerous mountain without a harness.”
Do you know your customer acquistion costs (CAC)? And do you know the long term value of a customer (LTV) for your business? If not, you are in trouble.
In simple terms your CAC is your cost to obtain new customers, and your LTV is the lifetime value of a customer. If your CAC exceeds your LTV, your business model is not only out of balance, you are in serious trouble.
Obviously, we need to lower CAC as much as possible and increase LTV. In fact, this is one criteria that determines the value of your business. And here are a few suggestions on how to do that:
OPTIMIZE YOUR SALES AND MARKETING FUNNEL
This means finding more ways to bring in higher numbers of quality sales prospects.
Joining the GLOBAL VALUE NETWORK instantly brings you into relationship with a good many high-quality prospects that are looking to work with members within the network. Can you see how this instantly optimizes your sales funnel?
STRENGTHEN THE EFFECITVENESS OF YOUR SALES AND MARKETING SPEND
Take a lean approach to marketing and sales expenses. Put money into channels that have proven returns so that you are not wasting any more dollars.
Joining the GLOBAL VALUE NETWORK means a flat yearly membership fee, and that’s all. The spend per new client continues to go down as you divide this cost by more and more new trading partners. No extra overhead is needed, no marketing costs, only networking. Having proven this approach for almost twenty years, what could be a more efficient sales spend?
QUICKLY ENGAGE NEW CUSTOMERS AND PROSPECTS
Cut down the time it takes to get new customers engaged with your services. The quicker this happens per customer; the cheaper acquisition cost becomes per customer.
Joining the GLOBAL VALUE NETWORK brings you into immediate engagement with your new trading partners.
Contact Will Siemens, firstname.lastname@example.org, to start lowering your CAC and increasing your Sales and Business Value.
The sooner the better!