A prospect told me recently they read online that it costs $18.68 to acquire a new client or customer on social media. Is that true? Is there a “special number”? How can you really measure the ROI from your social media spend – or from you’re marketing in general? Find out the answers to these questions and more in this video episode of my podcast.
Summary of answer: Customer acquisition on social media differs from business to business and industry to industry. There isn’t one magic number. And it takes a lot of testing, trial and error before you finally find a message and a target audience that works. Sometimes you can get a little bit lucky and find a message and audience that matches really quickly. Other times, it requires more patience until you figure out something that works. But when it does; the results are huge.
So focus on creating a message and a niche that matches well. That will allow you to generate leads and sales. Once you’re generating leads and sales you can see how much profit you’re making vs how much money you’re spending on marketing.
For now, I wouldn’t worry too much about the exact number of your customer acquisition cost. Just focus on creating a campaign that is profitable and then you can scale up and improve the customer acquisition costs as you go and get better.
Top tip: Don’t look at your marketing spend month on month. Sometimes leads can take months or even years to convert into clients. So look at the data over a long period of time (at least 6-12 months).
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