CHOOSING THE RIGHT CHANNEL

Accelerate your business with these expert tips on "Choosing the right channel". Take a look and discover this TIP!

We can choose the right CHANNEL of communication to invest in advertising by taking into account what it costs me to obtain a customer in each of them. By comparing the CAC of each communication CHANNEL we can decide with more criteria which one we are more interested in to accelerate our company. If we want to compare the effectiveness of the channels, we only enter the advertising costs incurred in each of them (it is not necessary to enter all the costs, much less distribute the staff costs).

In each channel we invest a certain amount of money in advertising, we measure the number of customers achieved, we calculate the CAC and by comparison we can decide in which channel it is in our interest to invest more CAC per channel.

• Direct traffic.
• SEO
• SEM
• Facebook organic
• Twitter Organic
• YouTube Organic
• Facebook Campaigns
• Twitter Campaigns
• YouTube Campaigns
• E-mail marketing
• Events
• Referrals

It is a very useful metric to compare the effectiveness of each of the channels through which we can attract customers. In this sense, To calculate with some foresight the cost of customer acquisition that we can afford in a campaign, we will have to take into account what the average purchase value of our customers is. In other words, how much they tend to spend on average.

This is because if, for example, we are a decoration shop and our customers spend an average of €30, it doesn't make sense for our customer acquisition cost to be €20. On the other hand, it would make sense to invest that much if we sell luxury cruises on the Nile and the average purchase value is €3,500.

Therefore, the CAC, or customer acquisition cost, is a effective metric to assess how much we can spend on customer acquisition. Google refers to CPA as "the cost you are willing to pay to make a conversion", but not to acquire a new customer. CAC, on the other hand, is about acquiring new customers.