Obtaining new customers is an exciting and fulfilling experience. It brings you closer to the light at the end of the long dark tunnel. You have put a lot of time and effort into launching your business and now you are finally seeing some return on your sweat equity. But be careful, more customers can mean more problems if not handled correctly.
Here are three customer acquisition risks to avoid:
Risk # 1: Unwritten agreements or promises
When advertising your products or services make sure your ads precisely describe what you are selling. Do not leave any detail unmentioned and left to the customer’s imagination. If the client assumes your product or service entails something that indeed doesn’t, your company will likely lose that custumer and possibly have a law suit on its hands. A good way to divert liability is to have a contract agreement. Never do a deal with just a promise and a hand shake.
Risk # 2: The Clingy Customer
Treating the customer right is a company’s number one priority. However, there are times when bending over backwards gets to be too much. A needy, clingy customer will jack up your CAC (customer acquisition cost) and bring down your LTV (long term value of a customer), throwing off the balance that you’ve been working so hard for. Clients who are calling and asking questions constantly can take up a lot of time which shifts your focus from gaining new customers to dealing with one. The answer to this ties in with risk # 1. Make sure your bill of services are clear so the customer can’t take advantage of your time.
Risk # 3: Underestimating Customer Acquisition Cost
Underestimating your CAC can lead to big problems in the near future such as digging a huge hole in your budget. Prevent this blunder in the planning stages of the business. Intensely research the market that the company will be entering. You want a good idea of the amount of potential customers there are, and what kind of demand there is for your product or service. If there is a high demand and lots of customers your CAC may be low depending on the cost of advertising.
In the end your main focus is gaining clients so your business can grow. If you are not obtaining new customers then the company cannot grow. That is the bottom line. Once you are taking in new clients you will have to balance the effort it takes to keep them with the dividends you receive.
Copyright 2016 Viral Solutions LLC
by Rob Carpen
Rob is a content writer and editor, specializing in a variety of fields. He helps B2B and B2C clients with blogs, social media, press releases and web content that create more value for their marketing campaigns. He earned his Bachelor’s Degree in Biology from Indiana University of Pennsylvania. He played Club Rugby at IUP for four years. He loves Rugby and recently attended the Rugby World Cup in Newcastle, England – New Zealand All Blacks v. Tonga Match. Rob is passionate about craft beer. He is transitioning his eight years of home brewing to earn his professional brewer certificate.