In a previous infographic, we discussed how client acquisition cost or CAC affects your total income per client. Carefully planning the elements that comprise your client acquisition cost can make a huge difference in your income – especially in the long run.
Here are 3 things you can do to lower your client acquisition cost and maximize your profit per client:
#1 – Get more recurring work from current clients.
Getting more work from clients saves you a lot of time and hassle in finding new clients again after a project ends. When you have recurring work, there is no need to spend time or money looking for new clients.When calculating your income for recurring clients, you only need to charge your client acquisition cost once. As a result, your succeeding income from this same client is relatively higher than when this income is earned from different new clients.
When clients are satisfied with your output, naturally they will give you more work. So, providing quality service in the first place is important to earn your client’s loyalty.
#2 – Focus on getting referrals.
Another advantage of providing quality service to clients is the high probability of getting referred to other potential clients. It’s not rare for a client to know another person who is looking for services like yours. A happy client is likely to put in a good word for you and refer you to their friends who might benefit your service. This is free and requires minimum effort or cost on your part.
#3 – Use only marketing channels that work.
Spending too much time and money on marketing approaches that do not yield results is useless. Don’t waste of money, time, and energy on something that doesn’t work if you have other marketing channels that bring in clients.
To measure the effectiveness of your marketing campaigns, have a time frame for how soon you expect this particular marketing channel to bring in clients for you. In this way, you can measure its relevance to your business.
As a freelancer, every second spent towards attracting clients has a cost attached to it. What have you done lately to lower your client acquisition cost?