CAC isn’t just for the marketing team to worry about. By adding text messaging to your sales process, you can significantly decrease customer acquisition costs.

Here’s how text messaging helps you decrease CAC in the long run.

Faster outreach to inbound leads shortens the sales cycle

Texting is the fastest way to reach out to a new lead. With inbound leads you’ve got no excuses for not reaching out pretty much immediately. By starting that conversation fast, people will respond quicker as well.

That gets you into a conversation sooner and therefore selling sooner. Not that you should pitch in your text messages. You really shouldn’t. But it opens the door to demo and discovery calls and all the rest of the selling fun.

By reaching out immediately and getting that conversation going, you set yourself up for a shorter sales cycle, which means saved time and resources.

Faster outreach = leads more likely to respond = you start selling sooner = shorter sales cycle

Personal communication helps you build actual relationships

People want to be treated like people. When prospects can tell that you’re treating them like a human and giving them quality attention, they engage. But texting itself doesn’t create engagement.

You create the engagement and get replies when you write messages that feel personal. Personalized text messages sent at the right times don’t just get read.

So by writing personal messages, you get more replies, and then you engage in more back and forth conversations. Every conversation gives you another opportunity to build a relationship with a future customer.

All of that adds up to customers who are willing to spend more and spend it sooner. Because you took the time to talk with them 1-on-1 and they trust you.

Personal text messages = more replies = more conversations = better relationships = more people willing to spend more money

Convenient interactions encourage people to buy

Texting isn’t just about communicating in a personal way. It’s also the most convenient way to get people to engage. Emails and phone calls end up ignored. I bet it’s safe to say you and I do both all the time.

Again, a well-timed and well-written text message doesn’t just get read. It gets responded to, especially when a lead already expects you to reach out.

Because texting is simply a more convenient way of communicating, you get people replying more often. It’s yet another way to open more conversations and opportunities to sell. So if you know what you’re doing as a sale person, that ideally means you earn more sales overall and at higher price points.

Convenient communication = more replies = more people to meet with and sell to = more sales

Ongoing conversations result in higher retention

Texting ensures you stay connected at all the important points in the deal cycle as well as after. Not only are you initially reaching out fast with a tailored message, you stay aware of people’s needs.

It’s easy to get back in touch and keep people on track within your pipeline. And even after closing, you easily stay in touch. (It’s so convenient to automate your text message follow-up at different milestones!) Customers continue enjoying personalized experiences when you remember to touch base time and time again.

Those relationships you build through text messaging encourage people to stay with your company longer. In other words, you boost the customer lifetime value. A higher CLV directly translates to lower acquisition costs because you know you’ll recoup what was spent.

Ongoing conversations = stronger relationships with more customers = customers choosing to stick around longer = higher CLV

Referrals happen more often

Like the last section made clear, the connections you create during the deal cycle don’t just end at signing. The fact that you’ve built a stronger relationship with a customer (and ideally kept that up even after passing them off to customer success) means there’s a better chance they’ll refer others because of their great experiences.

By turning your customers into your advocates, you improve your chances of getting referrals of future ideal customers. Text messaging is not only great for keeping up conversations but also requesting referrals in a simple, convenient way. Organic referrals from existing customers prove invaluable.

You get new hot prospects in the pipeline for essentially the same cost as you acquired the referring customers.

Better relationships with more prospects who turn into customers = customers more likely to refer others = more customers overall

Start conversations that end in sales

When you optimize your lead nurturing and prospect follow-up, you inevitably decrease customer acquisition costs. You can change and adapt in many ways to positively influence your team’s sales process. Just make sure conversational text messaging is one factor you consider.

By communicating with texting, you consistently and personally engage prospects and customers, directly affecting CAC.