Question

Topic: Research/Metrics

Customer Acquisition Costs In Telemarketing

Posted by Anonymous on 5/10/2005 at 3:56 AM ET 125 Points
Hello people,

I need to understand the following things with regards to customer acquisition costs:

1. What are the components of customer acquisition costs?
2. How do you measure customer acquisition costs?
3. Metrics for cost-benefit analysis from the point of view of an established in-house telemarketing division for a financial services company.
4. Reducing Customer acquisition costs for such a division

The company is a mid-sized financial services company, having a distribution network consisting of:
1. Direct Selling Agents
2. Telemarketing Division (In-house)

If you need furthr details, feel free to reply.

Thank You,
Ritesh
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RESPONSES

  • Posted by Chris Blackman on 5/10/2005 at 5:02 AM Accepted
    1. Campaign prep, scripts, uploads, plus cost to call, i.e. labour and telco, plus cost to process information.

    2. See above. Sum of (Unit cost x units used) plus share of burden (fixed cost allication)

    3. Simplistically this would be (Income per customer x number of customers), divided by telemarketing costs. however you need to reflect the length of time customer stays with you and income over this time.

    4. Improving scripts, cutting down lead-times to develop new campaigns, (and increasing ROI by increasing value sold per customer, increased conversion rates).

    Hope this helps:

    ChrisB
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