What CEO would not move heaven and earth to achieve a 30% reduction in Customer Acquisition Cost (CAC)? On today’s show, we discuss strategic alignment and the impact this has to your bottom line.
The impact of misaligned strategies is real. Our research has found that strategic alignment can translate to sales and marketing reducing CAC by as much as 30%. My colleague Ryan Tognazzini and I discuss how to gauge your current state and take steps to resolve.
Listen as we discuss level one companies and the impact this has on acquiring customers and your bottom line. If you’re in level one, you should start by developing strategies by functions. Get your corporate strategy from your CEO and determine if your functional strategies are aligned to the goals of the company.
Download our 10th annual workbook, How to Make Your Number in 2017. Turn to pages 34 – 39 to review how your corporate, product, marketing, and sales strategies interconnect.
In the second segment of the show we quantify the impact of strategic alignment. This is done through Customer Acquisition Costs (CAC) and Customer Lifetime Value (CLTV). Listen as we break down the process for calculating both and the expected impact of alignment.
In the final segment, we discuss level four and five aligned companies and the impact on CTV. Customers who spend more over their lifetime become more profitable for the company. You don’t have to sign as many new customers, don’t have to exert as much energy to retain customers. Ultimately, this drives up things like stock price and executives are happy with larger bonuses.
If you need more help with your strategy, download our 10th annual workbook, How to Make Your Number in 2017. To request a workshop with an expert simply sign up for a MySBI account and check the box in your preferences to request a workshop.