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Post Info TOPIC: Customer Acquisition Costs


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Date: Mar 19, 2009
Customer Acquisition Costs
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Hello guys. hope everyone is having a great day! One thing we haven't discussed much is the acquisition cost of getting a new customer. For those who don't know, the acquisition cost is how much it costs YOU to get the CUSTOMER to buy from you. With various forms of advertising and marketing, each company will have their own unique costs based upon what you spend in materials, ads, and how much your market will yield per job.

Our acquisition cost is between $25 and $35 per customer. Some may argue that ours is too high or too low, but we have found it to be just right in attaining and retaining our customer base. Some will have higher and some will have lower. Chris from Apple Roof Cleaning, for example, is very established as THE roof cleaner in Tampa Florida, so he doesn't shell out much in advertising and marketing. A new company, however, will most likely need to implement a higher acquisition cost the first 1-3 years until the business is established enough to float on its own, with minimal advertising.

When planning your season this year, do not be afraid to set an acquisition cost for new customers, as your presentation will set you apart from the guy who goes to kinko's for his homemade flyers. We frequently receive compliments on our magnets, flyers, brochures, etc for the professional visualpresentation they exude. This has helped establishus as the premier roof cleaning company in Evansville Indiana. Follow these guidelines and you will succeed. But don't take my word for it, this advice was taught to me by several respected leaders in the cleaning industry, and I am just passing it on for the next guy. Hope it helps.

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Date: Mar 19, 2009
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confuseGood Info Kevin! Thanks. You can't just sit at home and wait for the phone to ring get out and advertise

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Roof Cleaning Long Island New York (631) 220 6985


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Date: Mar 19, 2009
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You are correct. And one of the most important things you can do for your business and advertising is setting an acquisition cost per customer. This gives you a pre-set limit as to when you should move on from the prospect and look for better opportunities. This is what I mentioned in another thread about the importance of having a website, because it cuts the acquisition cost to virtually zero.

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Date: Mar 19, 2009
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confuseI plan on a website right after i get a few roofs cleaned

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Roof Cleaning Long Island New York (631) 220 6985


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Date: Jun 21, 2010
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Awesome idea. Although, how do you assess how many customers you will acquire before you've started the campaign? Do you go from the most likely average, or a best-case-scenario type of thing??

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New Customer Acquisition


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Date: Jun 25, 2010
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toddlillitch wrote:

Awesome idea. Although, how do you assess how many customers you will acquire before you've started the campaign? Do you go from the most likely average, or a best-case-scenario type of thing??



     I don't assess how many customers I will have before the campaign. The law of averages doesn't lie, so I already have a rough idea of what kind of return I can expect on each round of marketing. My ROI is tracked throughout the year, every year, and I monitor each method very closely. The post isn't intended to guesstimate how many customers I'll get; it's intended to provide an example of what it costs me to get each customer, and the return on that investment.

 



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