Within the technology industry is a term in the cost structure that employers are aware at all times: the cost of acquiring a customer (Customer Acquisition Cost of CAC). As with any cost analysis for a company to be healthy it should keep this cost at the appropriate level otherwise this amount will be incrementally reducing the profitability of the business.
The concept itself is not absolute, the metric has many variations depending on the type of customer, representing the average income and the time in which the client is committed to the service offered. Either way one of the strategies that many SMEs are developing successfully is to try to retain the customer captive through various tactics.
The point at issue is not whether the cost of acquiring a new customer is much greater than the cost incurred to retain a client who is currently committed to service and / or product offered. Many studies and statistical information set that the cost of holding captive customers is by far less than the cost of acquiring a new customer.
The tactics to achieve retention vary widely but it's worth paying attention to banking services to realize how this kind of specialized marketing functions, from tracking the financial performance of its clients, to offering personal lines of credit or sale of life insurance and property. If you have a bank account cross-selling coming straight from your bank on your person is relentless; everywhere trying to get you a credit card.
In technology companies, something similar happens. If you have a business solution, your provider will be looking for you to increase the bill of their products through upgrades of the same app or a functional increase of any particular tool. These companies are extremely efficient on segmented trends and consumption habits of their customers because they know that if they lose you it will cost them double or triple the effort and cost to acquire a new customer.
Although it sounds a concept that only medium and large companies could land effectively in reality the most remarkable results are given in small and micro enterprises: they offer more products and services to its customers. If you sell building materials may be a matter of expanding your product range to provide waterproofing and industrial paints. If you sell computer equipment you may have to consider to offer network services and telecommunications hardware as well.
It's a matter of developing and offering your customers a platform to solve most of their issues by means of one-stop shop.
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