Marketing Can Acquire The Right Leads
Your marketing team will be tracking customer acquisition cost (CAC). It costs money to acquire each and every customer, and how much depends on 2 factors: the type of customer you want to acquire, and the channels you’re using.
But CAC isn’t one single number. Your CAC is amalgamated from multiple personas across multiple channels. It doesn’t make sense for you to track just a single CAC, because it can vary wildly from buyer persona to buyer persona.
If you have buyer personas split across startups, mid-size businesses, and enterprises, each of these are going to have a different CAC. The startup persona is likely to be self-serve and need less decision time than an enterprise client, where there will be multiple stakeholders requiring significant high-touch sales work.
If you were to treat these two CACs the same, as a single monolithic number, then you will be trying to optimize your CAC for a persona that doesn’t exist. Instead, if you quantify your buyer personas, parcelling out the separate CAC numbers to each persona, you can optimize according to these personas and bake this understanding directly into them.
Not only does it help the marketing team control the CACs for each buyer persona, but in terms of aligning the funnel, it also helps your sales and customer success teams perform better. It lets them control their own metrics—willingness to pay and LTV—around the CAC and know with which parameters they are working.