goodRanking online marketing bureau
Online marketing offers a wide range of opportunities to inspire new customers to your own business. Be it search engine optimization, social media marketing, content marketing or cross-channel advertising campaigns: The better the marketing mix is tailored to the target audience, the more chances it has. While digital sales strategies differ, there are some universal metrics that allow for ongoing monitoring and improvement of customer acquisition.
Conversion rate optimization on different channels
Impressions, reach, clicks and more – the measurable performance values are as varied as the online marketing goals. All in all, they all have an impact on the acquisition success, ie the conversions achieved. A conversion is a desired action of a person on the respective online channel. If the marketing focus is on acquiring new customers, buying a product or using a service is among the usual conversions. In this context, the conversion rate plays an important role as measured value.
The conversion rate describes the ratio between the number of conversions and all people who have interacted with the respective channel, such as website visitors. If you want to optimize the conversion rate and thus the customer acquisition, each channel in online marketing has its own requirements. While the primary focus of image ads is on the visuals used, text ads focus on the wording. Aside from creative customization, paid advertising campaign tools offer several setting options when it comes to delivery. This includes the definition of the target audience, the distribution over time, the location and the budget.
Although the various adjustment screws open up a wealth of optimization options, they are ultimately united in the goal of offering the addressees a positive user experience. Especially on your own website, it is crucial to improve the user experience in such a way that it covers the needs of the target group in terms of content and visually. Last but not least, the experience must be supported by flawless technology and intuitive user guidance. Most recently, it is clear how demanding a fine-tuned conversion rate optimization is in online marketing. However, it is also a valuable effort that makes it more efficient to get new customers little by little.
Calculate profitability and budgets for online marketing
Like most business processes, new customer acquisition is primarily based on profitability. Just because you’ve got a customer does not necessarily mean that it was worth it financially. This raises the question of how much of your online marketing budget should be invested in acquiring a single customer. “Customer Acquisition Cost” (CAC) and “Customer Lifetime Value” (CLV) are used for the calculation.
The customer acquisition cost provides information on the average cost to be persuaded to persuade a person to purchase a product or use a service. All expenses for online marketing initiatives in connection with the acquisition are divided by the acquired customers in the respective period. On the other hand, Customer Lifetime Value describes the average net profit that a single customer brings to the business throughout their customer cycle.
By comparing CAC and CLV, insights can be derived for current profitability and future marketing budgets. For example, if you have to invest 100 euros to acquire a customer who brings in 200 euros, the ratio is one to two. The relationship you want to aim for varies from company to company. A CAC-CLV ratio of one to three is usually given as a positive guideline. It should be noted in this calculation that the variables are average estimates. A well-founded data set is therefore crucial for as valid a calculation as possible.
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