Maximizing Customer Acquisition for Sustainable Growth


Hatched by Glasp

Aug 04, 2023

4 min read


Maximizing Customer Acquisition for Sustainable Growth


In today's competitive business landscape, acquiring customers is crucial for sustainable growth. However, it's not enough to simply focus on attracting new customers; understanding the cost of acquiring customers and optimizing your strategies is equally important. In this article, we will explore two key concepts: the importance of authority and merit in proving your point, and the significance of understanding customer acquisition costs (CPA) to maximize your marketing efforts.

The Power of Authority and Merit:

When presenting your ideas or arguments, relying on someone else's authority or name may undermine the merit of your point. True authority comes from the strength of your own evidence and the validity of your arguments. Instead of name-dropping or appealing to authority, focus on showing your work and providing compelling evidence to support your claims. By doing so, you establish your own authority and gain the trust and respect of your audience.

Understanding Customer Acquisition Costs (CPA):

Customer acquisition costs play a pivotal role in determining the efficiency and effectiveness of your marketing efforts. The concept of LTV>CPA (lifetime value greater than cost to acquire) is a fundamental principle to keep in mind. This means that the value a customer brings to your business over their lifetime should exceed the cost it takes to acquire them.

To calculate CPA accurately, it is essential to break down the overall cost into components such as attracting new customers versus bringing back old customers. Additionally, differentiating between paid and free acquisition channels is crucial. While it might be tempting to focus solely on cost per visitor (CPV), it is more insightful to consider the conversion rate from visitor to customer, which often varies significantly across different channels.

It's important to note that SEM spend on brand terms should not be included in your SEM CPA. The only truly free channel is when people directly type in your URL. Other "free" channels like SEO and CRM have variable costs that should be accounted for. However, the initial investment to implement SEO or CRM should not be included as it is a one-time cost.

When starting out, prioritizing the differentiation between acquisition costs of new versus returning visitors may not be necessary, as meaningful returning visitors might be limited. However, as your business grows, investing time and money into your web analytics system becomes imperative. Ideally, you should track back all marketing costs from the moment of user payment. As a compromise, comparing "Cost per Sign Up" across marketing channels can provide valuable insights.

Actionable Advice:

1. Reduce CPA through Sophisticated SEM and Improved Conversion Rates:

Continuously strive to improve your search engine marketing (SEM) strategies by becoming more sophisticated in keyword targeting, ad copy, and bidding strategies. Additionally, focus on increasing your conversion rates by optimizing your landing pages, improving website user experience, and implementing effective call-to-action strategies. By doing so, you can realistically reduce your CPA in each channel over time.

2. Leverage Free Channels and Prioritize CRM:

Take advantage of free acquisition channels such as search engine optimization (SEO), content marketing, and customer relationship management (CRM). Investing in CRM, especially if you already have an existing customer base, can yield significant results. By nurturing and engaging with your current customers, you can drive repeat purchases and referrals, ultimately contributing to the growth of your business.

3. Set Realistic Targets and Avoid Misjudging CPA:

Setting realistic targets for CPA is crucial to avoid misjudging your marketing efforts. It's common for CPA to start high, decrease as you become more sophisticated, and then potentially increase again as you pursue volume through less relevant search terms or broader targeting. When forecasting and planning, avoid assuming that the CPA from highly relevant long-tail SEM will apply to the most popular "head" terms in your industry. Consider starting with the cheapest channels for paid acquisition until you reach your maximum budget or your CPA creeps up too high.


Effective customer acquisition is a balancing act between leveraging your authority and proving your merit while understanding and optimizing your customer acquisition costs. By focusing on showcasing your work, reducing CPA through sophisticated SEM and improved conversion rates, leveraging free channels and prioritizing CRM, and setting realistic targets, you can maximize your marketing efforts and pave the way for sustainable growth in your business. Remember, authority derives naturally from merit, and understanding the intricacies of customer acquisition costs is paramount for success.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)