How Much Does It Cost To Get A New Client On Social Media?
Howdy y'all! giovanni here. In this video we're going to have an honest discussion about what it costs to acquire a new customer via social media.
So you're interested in growing your business using social media. I recently read in blog post that it costs $18 and 68 cents to actually acquire a new customer, or client using social media. I wanted to know if that number is reasonable - if it's accurate if it it's true. The truth of the matter is - there's so many variables, so many different industries that use social media to generate leads and to win more clients that there can't possibly one magic number. It depends from business to business - but the most important thing that will help you get the best results from any sort of marketing campaign, not just social media, but PPC, SEO, email, etc - the most important thing that you need to nail is getting the message right and getting a message that resonates with your target audience.
OK this is the thing that you wanna focus on - if you can get that right, if you have a message that really resonates with those that you're targeting, you're going to be able to generate leads and convert these leads into clients. This is much more effective and in the long run easier compared to if the message that you have is weak or just a generic because the people you are targeting won't respond. And to be honest, they shouldn't. If you suck at messaging you don't deserve to have them pull out their credit card for you.
Let's assume you've gotten the messaging right. Now you need the right people to see your message. You should start advertising when your target thinks, "Wow this resonates with me perfectly. It's like they're reading my mind." That's kind of response you wanna have with any sort of lead generation you do. Whenever you're doing advertising - I wouldn't worry too much about what the COA number is, (and COA means cost of acquisition) - as long as you're profitable.
OK - for some of the folks that I work with, it doesn't cost them $18 and 68 cents to actually land a client. Some of them will spend $168 and 80 cent and others may only tolerate $8 and .68 cents. The magic number you're looking for is the number where you bring in clients and make a profit. I work with some clients that sell a higher ticket product, or service, so all they need is one new client each month, or maybe one project every few months. Even at this low conversion rate, the high cost of their product or service more than pays for the advertising and marketing that they do.
Now keep in mind - whenever you're starting to track the return on investment from your social media and other marketing in general is that you don't just want to look at one channel at a time. You might generate a lead from social media- which is great - but the truth of the matter is even though that person first found you on social media, maybe they're not buying from you, just because of social media. It may be because of all your content - maybe it's what you say and how you say it.
Maybe it's the videos produce or maybe they read one of your articles or listened to a podcast that you have or that you were on from somewhere else. Maybe they did research online in the press or saw what other people are saying about you and they read a good thing about you... you get the point here... There's lots of ways that someone could hear about you. What you need to do is just keep this in mind when you're doing marketing and especially when you are evaluating your results. So if the first way that they hear about you is social media - great! That deserves a lot of credit, but also keep in mind that the other things that you're doing with your marketing - especially with your content. Everything is going to affect the sales that you actually make from the leads that you generate online - no matter where they come from, including social media.
So what can we do to simplify this and make it as easy as possible to really track what kind of return on investment we're getting for our marketing and for the clients that we work with? We need to step back and have a look at everything that we're spending with our marketing dollars, and then just track a few simple things. The four things I track are":
My reach... so this is new traffic, engagement, followers... you know, all the vanity metrics that don't pay the mortgage, but that can be a barometer for how your content and marketing is being received overall.
How many people I'm getting funneled via my leads. - This is the number of new folks that actually reach out to me about what I do. It's not actually a request for service... it's basically a real contact directly to me.
How many new business opportunities am I getting from the leads? I track this by measuring actual sales calls and proposals I am asked to submit.
And then finally, how many sales are I actually get from those new business opportunities?
They're the four most important things that I track and I think it will serve you well to track the same things.
Keeping it simple is critical here. You can go into more detail and track things at a more granular level, and you can track how you're doing with all the different channels individually if you have tons to time to waste and you're a weirdo who loves spreadsheets. Overall, you're going to have all the info you need if you just track your ROI on a bigger scale, across all of your marketing - across everything that you're doing. Then, you can work in ways that you can improve in small areas.
I love the Jack Welch approach of reviewing detail once every 4 to 6 months and blindly cutting the bottom 10% of your efforts, then reallocate that money to boost something that is working or to test something new. I tend to cut the bottom 25% - whatever number works for you. But be diligent during these reviews not to cut something that appears to not generate new leads and business on its own, but which supports something else that does. During those times, you can look in more detail at how much you're spending on your marketing per platform and look at how much sales and revenue generating from your business. Then you can work out much more accurately how much it really costs you for your marketing efforts not only on social media, but from all of the platforms you market on - to actually generate a new customer.
So - that's what I do - that's what I tell you to do to work out how much it costs to get a new customer overall, and on separate platforms. Now that number is going to be different for every business for different lines of business and for different marketing platforms. - but as long as you're profitable - it doesn't really matter too much once you have a number. It's working overall and your job is to keep the train on the tracks and just maintain it and tweak for optimum performance. Your first goal is to make a profit. Your second goal - after you've achieved the first one, is to improve on what you've built.
And that's all I would focus on.
And remember what I started this video off with - the message for the target audience is the most important thing when it comes to creating a profitable social media campaign. There aren't enough advertising dollars or promoted posts to put enough lipstick on your terrible marketing message - consumers are smart and they will smell you coming a mile away.
You need to get creative and work hard... then you can rightfully start asking for peoples' attention.
OK now, I have a quick favor to ask. After being on YouTube since 2007 I'm starting over. Why? This is going to sound strange - but it's a way for me to test the tactics and techniques I use for clients. While I still manage accounts on facebook and instagram for clients, I don't use the platforms for myself. I don't like how facebook does business - that's all I need to say about that. Each year, for several years now, I delete my followers on twitter in December and start over. Again, I do this because it forces me to stay relevant by having to rebuild my account each year. This year, I decided to add Youtube to the mix. I deleted the previous Youtube account that I had for 12 years, and I'm starting over with this new account - from zero.
So here's my ask:
Please subscribe to my Youtube channel - that would help me out so much. Heck, you can even turn on notifications if you want.
Thanks again! I hope you learned a thing or two in this video and that you'll come back for more.
The music for this video was provided by birocratic (https://soundcloud.com/birocratic) under a creative commons license.