Informatics matrix CUSTOMER ACQUISITION COST: KEEP IT AS LOW AS POSSI | Page 8

3. Reduce Dependence on Paid Ads
The returns of paid advertising are linear. Once your sales funnel is optimized, and your marketing
strategy is reliant on paid ads, then you cannot make big reductions in your CAC. To drive down
your CAC, start investing in owned media which consists of your info graphics, magazines, blog, e-
guides/whitepapers, research reports, content, and website.
4. Cut down Customer Churn
Undoubtedly, the cost of grabbing new customers is always higher than the cost of up selling an
existing one. When your business lacks keeping a hold on existing customers, then the profit costs
do not stay at your advantage. Use cross-marketing and up selling opportunities to retain existing
customers and build a trust base for new customers.
A recent study conducted by Entrepreneur India proves that on an average, marketers were able to
retarget their potential patrons at the cost of less than a $