January 17, 2012
Most businesses that sell goods to a new customer have an acquisition cost between $35 and $350. For every 100 customers acquired, that means $3,500 to $350,000 was spent to gain new revenue.
One thousand new customers will cost $35,000 to $3.5-million. Those are big numbers!
Plus, there is the ‘cost of lost opportunity.’
For this article, the term ‘cost of lost opportunity’ refers to what you could have been doing with the time and resources that would have generated additional income from existing customers. This factor usually doubles the cost of acquisition for most businesses, to $70 to $700 per new client.
If a business sells services, the sale may take weeks or months to nurture and include presentations, customized collateral, multiple team-member involvement and trips to the client’s site. The cost of acquisition can easily range from $500 to $5,000. Add the cost of lost opportunity and the value goes up to $1,000 to $10,000 for each new client.
To read more, visit Red Scarf’s site