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"ROI 's superior knowledge for marketing the web site is
outstanding. A winner."
- S. R. Calvin Calvin Academy "We are swamped with the initial responses from our WWTE web site and thus would like to cut back by 50% the promotion on that site." - R. A. McNae |
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Managing Cost per Customer Acquisition Online |
| What is your cost to acquire a new customer? |
The chart to the left shows the relative cost per customer
acquisition using some of the most popular tactics for Web
site promotion.
Few online marketing programs use all of these tactics. Rapport Online Inc can produce an online marketing program specific to your products/services, marketplace and current selling methods. Just as in the “real world,” the least costly customer is the one who was referred by a satisfied customer. The first tactic we place in any online marketing plan is to make it as easy as possible for your customers to refer others to your site. When the referral is so easy that your customer does not even realize they have made the referral, it is called “viral.” Having your site found through high placement in search engine results is the next lowest cost promotion. Even if it costs a few thousand dollars to “optimize” a site to be found in search engines, this will represent the least costly method of generating traffic. And our experience is that visitors who come via search results are much more likely to buy. Certain sites now allow customers for pay for top placement in search results by bidding an amount that the advertiser is willing to pay per click-through. The prices can range from 5˘ to over $3 per click-through. These search results are seen at the top of the regular search results in most major search engines in a category called “Sponsored Links” or something similar. Our experience has been excellent when this tactic is applied to e-commerce sites. Links negotiation done right is time consuming, so, it bears an initial cost. But the links obtained can be competitive with search engines in the volume and quality of traffic that they bring to a Web site. Much has been written about opt-in e-mail. The best e-mail lists are those that a site builds itself from customers and visitors, although there are legitimate opt-in lists for sale. Bringing valuable information to the recipient via e-mail on a continuous basis builds a unique trust and sense of familiarity with the sender. Affiliate programs are most effective when well managed. It takes strategy and time to recruit affiliates who will be productive. Hire professional affiliate program management and allow about six months for the program to be fully productive. Another overlooked opportunity for advertising is e-mail newsletter advertising, especially text ads. Our experience with e-mail advertising is that text ads placed in a well targeted newsletter or discussion digest by the owner of the publication will out perform banner or text ads served to a newsletter by a third party. We suspect that there is an element of third party referral/endorsement attached to these ads even though they are clearly labeled as advertising. Advertising in traditional mediaand banner advertising are probably similar in effectiveness. The primary difference is that banner advertising effectiveness can more easily be tracked. When we do banner advertising, we prefer to design the creative to fit into the way each site is used. When we have been able to place banners that way, our click through rate has been 5 to 6 times the average. These are the basic tactics Rapport Online Inc works with to construct online promotions that achieve results with the right mix of elements to meet your objectives and stay within your budget. Try our new Cost per Customer Acquired Calculator. For more information about these and other online marketing concerns e-mail or call 928-284-2704. |