Companies create significant value by pulling the Customer Acquisition Cost (CAC) lever. Consider a 1,200 employee mid-market company. In this example scenario, the company’s CAC was roughly $100,000 before aligning its sales and marketing strategies. However, the marketing team had been building a lead-generation engine that was in direct conflict with the sales team’s big-game hunting strategy.

 

Below is an example of customer acquisition cost analysis to illustrate the type of impact that is possible for your enterprise.

 

Customer Acquisition Cost

 

By aligning strategies and resources across the two functions, this company effectively reduced CAC to $75,000 per customer. It achieved this improvement by increasing the number of customers acquired through an inside sales function that could absorb the marketing leads. As a result, the company created an additional $25,000 of contribution margin per customer in year one.

 

To go deeper, review these recent articles:

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ABOUT THE AUTHOR

Eric Estrella

Helps clients grow by creating innovative go-to-market strategies.

Eric specializes in helping clients solve some of the most prevalent go-to-market problems in today’s complex selling world. He is an expert in many industries including software, telecommunications, ecommerce, manufacturing and technology. He helps them align strategies and develop go-to-market programs to lower the cost of customer acquisition and increase customer lifetime value.

 

Recently he developed corporate, product, marketing and sales strategies for an emerging telecommunications solution provider that resulted in a quadrupling of revenue and EBITA in two-year span.

 

Eric’s background in strategy, sales operations and enablement allows him to provide thought-leadership in emerging best practices in sales and marketing.

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