If you know how to work out your customer acquisition cost benchmark but have no idea of how to assess your customer acquisition cost, don’t worry, you’ve come to the right place. As if you continue reading below, you’ll learn everything that you need to know about customer acquisition cost benchmarks and how they can help you figure out if your customer acquisition cost is low, middle of the road or high. Which will help you make better sales and marketing decisions and will help you decide whether or not you need to reassess your marketing strategies in order to decrease your current customer acquisition cost, or not.
Customer acquisition cost benchmark: All you need to know about customer acquisition cost benchmarks
If you’re uncertain of whether your customer acquisition cost is low, middle of the range or steep for a business of your size, in your industry, you may be searching for a benchmark which will give you insight into how your business is doing. When it comes to marketing your business’ goods and services to potential new customers.
To find out what your benchmark is, it’s a great idea to compare your business’ average customer acquisition cost with the benchmark for the specific industry that your business is active in. As examples, the benchmark for the travel industry is approximately $7 per new customer acquired, while the benchmark for the retail industry is higher at roughly $10 per new customer and the customer acquisition cost benchmark for the financial industry is a whopping $177 per new customer. If you’re curious about the benchmark for the retail industry, it’s roughly $22. Which is quite low compared to many other industries where it costs the average business over $100 to acquire each new customer.
Some other industries which have high customer acquisition benchmarks over $100 per customer include the marketing agency industry which has a benchmark of $144, the real estate agency industry which has a benchmark of $213 per customer and the telecom industry which has an insane customer acquisition benchmark of $315. Currently one of the highest benchmarks that you may need to be aware of is the software industry which has a current benchmark of around $395. Which is far higher than the benchmark for the retail industry which is just $22 and a fraction of the cost.
Make sure to look for the latest customer acquisition benchmarks:
On a year to year basis, it’s important to look for updated customer acquisition benchmarks as usually over time benchmarks will increase both due to inflation and rising production costs as well as changes in your business’ industry. As you should never compare your business’ customer acquisition cost to outdated data which is no longer relevant to your industry and may do your business more harm than good.
So if you had worked out your business’ current average customer acquisition cost but had no idea of whether it was decent or needs improvement, now you know how to use industry benchmarks to figure out the answer to your question!
If you found this article helpful, check out more blog posts from Local Works!
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