Interestingly, the reason for this increase in costs is not to raise prices in the market or your own ambitions.
This is the most unpleasant thing to take away from the need to constantly increase the budget for customer acquisition. If a business is set up correctly, such budgets tend to be reduced significantly, unless it is an expansion or a new product launch.
A common practice is to open a restaurant, an agency, service center (we are talking about small businesses, of course) - they feel the need to attracting the first customers, but then often curtail advertising activity: they They have enough customers who have become regular. Take a closer look, there are plenty of similar businesses around there are not so few of them. This is the work of word of mouth, which is not always free.
It's simple: you invest the "promotion budget" not in communication channels, but in your customers. By giving them a little more than expected, which is the reason for launching such a mechanism. The only problem is that giving too much can have the opposite effect the opposite effect - they will hide you for fear of deteriorating the quality of the of the product in the process of growth.
But, yes, sometimes making your product better is a surefire way to reduce the flow of customers and, at the same time, save money on promotion. Reinvest in consumer experience what you are currently investing in
advertising.
It sounds fantastic, until you get your hands on a calculator. And then it turns out that making a gift to a client is much more more effective than spending money on advertising. The reach will be much smaller, but the "touch" will be much deeper. And as a result, it's not just one satisfied customer (and your 3-5-10 future sales), but also his environment, to whom you who will recommend you.
This approach has many advantages, one of which is homogeneity of the audience, because it does not go beyond the social circle of your current customers. And this means the ability to focus your offer as accurately as possible offer, the ability to very accurately create a portrait of the audience already inside the within the target situation.
But here's the problem. It's a completely irrational barrier that is very difficult for an entrepreneur to cross. He will gladly give money for advertising in the online advertising, SEO promotion, etc., but to force yourself to just to give away something that is made, something that can be sold...