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Finding effective ways to acquire new customers is critical to the success of any business. Customer acquisition cost (CAC) can be a constant concern for organizations. In this article, we will explore how digital credentials become a powerful tool to reduce CAC, increase efficiency in customer acquisition and obtain a positive return on investment, through the branding and positioning they generate.
What are digital credentials?
Digital credentials are electronic certifications that validate skills, achievements or knowledge acquired in various fields. These credentials allow individuals and organizations to reliably demonstrate their competencies and achievements, facilitating their recognition in the academic, professional and workplace fields. Additionally, they simplify the process of sharing and verifying these achievements, providing flexibility and greater credibility in the digital world.
Significant savings and ROI worth it
Using digital credentials instead of physical formats offers significant time and money savings. Digital credentials are quick to issue, share and verify, avoiding the need to print, mail or store physical documents. In addition, access and management are simplified thanks to digital platforms and applications, which reduces printing, shipping and physical storage costs. With digital credentials, efficiency is optimized and economic benefits are obtained, while promoting sustainability and reducing environmental impact. Besides Through different metrics it is possible measure the ROI of implementing this certification format.
The Impact of Digital Credentials on Customer Acquisition
Greater conversion of prospects to customers:
According to a report by research firm Brandon Hall Group, companies that offer training programs with digital certifications They see a 20% increase in the conversion rate from prospects to customers. This means that prospects looking to improve their skills in a specific topic are more inclined to enroll in a course when they know they will receive a digital credential upon completion.
1. Recommendations and references:
A Nielsen study revealed that 92% of consumers trust recommendations from friends and family over any other form of advertising. When students or collaborators successfully complete courses of any type, and obtain digital credentials, they are more likely to share their achievements on their social networks, thus recommending the organization and the course. This can lead to a significant increase in referrals and reduce marketing expenses.
2. Customer loyalty:
Digital credentials can serve as a “loyalty program” of sorts. According to HubSpot, it is five times cheaper to retain an existing customer than to acquire a new one. By offering digital credentials, you can keep students engaged for longer, which translates into a decrease in CAC, this way you don’t need to invest as much in acquiring new customers.
3. Increased brand reputation:
The quality and authenticity of digital credentials can elevate the reputation of organizations. According to a report by EdSurge, 63% of people trust educational institutions that offer verifiable digital credentials. This can result in increased student attraction without significantly increasing the marketing budget.
4. Improved segmentation:
With digital badges, you can collect valuable data about your students’ performance and interests. This allows you to better segment your target audience and personalize your marketing efforts. According to a study by Econsultancy, personalization can reduce CAC by 50%.
Digital credentials not only improve the credibility of your course, academy, bootcamp, educational institution or company, but they can also have a significant impact on reducing CAC. By offering verifiable and valuable digital credentials, you can convert prospects into customers, build loyalty with your students or existing collaborators, and harness the power of referrals to increase the efficiency of your customer acquisition efforts. These additional benefits make investing in digital certificates and badges a smart strategy, both in education and marketing.
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