Back to metrics again, it’s vitally important that you measure what you want to control. To that end, perhaps the most important business metric you should be concerned with, and one which you have a fair amount of control over, is the cost of acquisition for each customer.
Whether you market your products and service through PPC, social media, search marketing, other, or a combination of above, you should keep tabs on what it costs to get a new customer. If you don’t know that, you don’t know whether you are earning a profit or not.
By running a few tests you can determine the base cost of a new customer. This is easy to do with pay per click advertising.
After you have determined the base cost of a new customer, you can then adjust that as needed by tweaking your online marketing initiatives. You can downgrade your PPC campaigns to control costs, increase the amount of time you spend on social media, or increase your SEO efforts.
Keep in mind that customer acquisition cost is a one-time event. After you have gained a new customer you then have to expend your resources to keep him. That’s a different cost altogether, and it’s cheaper and easier to keep a customer than acquire a new one.
So keep an eye on the cost of obtaining a new customer. It’s your most important business metric.