Cost of Customer Acquisition (COCA) – Marketing Tips
Depending on what is that you plan to offer e.g. goods (T-shirt, dogs accessories, …) or services (tutoring, babysitting, snow removal, lawn care, …) one or a mix of few channels would have a better chance of getting more customers, or in marketing terms, it would have a lower cost of client acquisition (COCA). For example, if you spent $1,000 of printing and distributing flyers in your neighborhood and receive 50 orders the COCA would be $1000/50 = $20 per client. If you create a clever Ad and post it on the Facebook for the same geographical circle and for the age group of 30-50 and Males and you gain 70 clients the COCA of your online marketing would be $1000/70 = $14.28 per client, which is lower than the flyer marketing.
Likewise, you could compare COCA of spending $500 marketing budget on different digital channels, e.g. AdWords on Google, versus Facebook advertising, versus posting frequent ads on Kijiji or Craigslist.
Different digital channels offer a different demographic mix, traffic, and user experience, hence depending on your target audience, your digital marketing budget could be allocated to one or a mix of few digital channel. Furthermore, some digital channels could work as pre-requisite for others. For example, if you offer plumbing services in Toronto it is more likely that your customer with a clogged sink search Google than search Instagram for a plumber. In such case, you got to have a solid search engine marketing (SEM) plan in place. If you offer such kind of service then Google AdWords would be the primary choice of your short-term marketing strategy, and the 3 years Loco Ad package on Locobiz should be your complementary SEO strategy to boost your organic ranking on search engines.
What digital channel do you use to market your small business? What is your COCA?!
Tags: #SmallBusinessMArketingTip #SmallMarketingBudget #CustomerAcquisitionCost
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