"Feed your own ego...I'm busy." ~Unknown
I remember the conversation like it was yesterday because it did not go well.
Last December, I was meeting with a very well known and successful marketing guru (let’s call him “Adrian”) who made his fortune with a marketing software product. He was interested in investing in Texting Base. The conversation was going GREAT when he asked me what I projected my cost to acquire a client would be. I answered, “My goal is to keep it under $10 per acquired customer.”
This is where the entire meeting derailed. At that point, he stopped me and started educating me on the fact the number I just told him was completely ridiculous and I should be allocating at least $80 per customer to my models. He chided me that the industry average to acquire a customer in the SaaS world was $130. I just listened…everything he was saying was absolutely spot on and true. There was no point in arguing.
The conversation abruptly ended. I thanked Adrian for his time but he couldn’t get off the phone fast enough…he thought I was naïve…maybe insane…wasn’t the first time.
I never did get a chance to tell him my plan…but he also didn’t ask.
A funny thing happened a year later in December of 2016. We spent a total of $579 on marketing. We acquired 62 new business texting customers.
How did we do it?
$63 Google Ad Words: No sign ups. $199 Found.Ly: 5 leads, 1 sign up. $317 Texting Base: 24 sign ups. $0 Affiliate Program: 27 sign ups. $0 Random: 10 sign ups from Internet searches and old demos using terms like "Best Texting Software for Businesses” .
That brought our cost down to $9.34 to acquire a new customer.
I killed Google Ad Words and Found.Ly is on notice.
I think we’ll get this number down to under $8/customer in the future. Yo, Adrian…we did it!
ABOUT THE AUTHOR
Eric Beans is CEO of Texting Base, Inc., out of Orlando, Florida. Texting Base is a marketing automation platform which allows businesses to personalize group text messages.
Prior to Texting Base, Eric was the first US employee of TechSpan which became Headstrong. Headstrong sold for $550M to GenPact.
With a group of partners in 2005, Eric started Premier Mortgage Capital, Inc., a nationwide state charted Mortgage Company that grew to over 2B/Year in originations.
Eric is the author of "Changing The World Through Texting Software.”
Eric is a speaker, inventor, patent holder, chef, writer for LA Style Magazine, producer and author.