BPO Philippines – Outsourcing to Lower Your Customer Acquisition Cost

Sales and profits are surface level metrics that do not tell the full story on the health of a business. One of the more indicative metrics is customer acquisition cost.

This really is just a fancy way of saying that every customer for your business has an associated cost and knowing that cost is indispensable for you. This cost is the sum of all of the marketing and sales tasks that take place and lead to the end sale.


A customer almost always starts as a cold lead, and at best a warm lead. In non-sales terms, this means most customers start a long way from the final sale. Over an undetermined amount of time, the marketing team will work to move this lead closer to a sale.

The ways that this can be done are plentiful and diverse in nature. Through the use of mailers, direct-mailers, email campaigns, free samples etc., the marketing team will continue to dangle the proverbial carrot out into the world and see who decides to take a bite.

The marketing team will also use an array of event type marketing. This will include speeches, webinars, tables at trade shows or other assorted events, networking events etc.

At the point that these leads (potential customers) start to show enough interest in the product or service, they will be passed along to the sales team. This interest can be shown by a demo request, a price inquiry, or simply an ask of how to get started.

The sales team takes over here and will go through their sales stages. They will qualify the lead, present to the lead, negotiate the terms with the lead, and eventually will close out the opportunity as a loss or make the sale and close as a win.

This is all a very elementary explanation of this process, but you should be able to get the overall point here. The process is not quick and is not always cheap. The upfront cost matters, but as usual in the business world, it’s far more powerful to consider what the yield of the original cost is. More simply, it’s all about the return on investment.

A good rule of thumb for customer acquisition cost is that a healthy business is running at a three to one ratio, meaning that the cost is returned at three times the value. This rule will keep you focused on not only the cost of your customers but the return as well.

These reasons make it of real interest of businesses to find high-quality customers in a cheap fashion. This makes outsourcing an attractive option for corporations.

As stated before, this cost-effective approach should not be at the cost of quality. Not all outsourcing is created equal. Choosing where you outsource to is as, if not more important than the decision to outsource in the first place.

If you want the best, and let’s be honest, your business does, then you have but one choice. And that’s the Philippines. The Philippines is the home to an economy on the rise, a flourishing business process outsourcing industry, and one of the youngest and best workforces.

The Philippines has spent the past 20 years, becoming the titan of this industry. The nation’s ability to do so has relied on a unique set of circumstances that they have capitalized on.

For starters, this affluent industry has been a major aid to the Philippine economy. Because of this, this is an industry supported and backed by the local government.

Government also plays a role in another way, just from another time. The Philippines was once a US territory in the day and age of colonialism. This gives the Filipinos not just the advantage of speaking English, a language spoken by 20% of the world’s population, but a form of English that is clearly spoken and easy to understand across the globe.

The Philippines is also home to a young and well-educated workforce. While the cost of outsourcing is cheap for the companies who do it, the BPO industry is both well respected and well paid locally. This gives the outsiders the quality they are looking for. Outsourcing providers such as Piton-Global in Manila have been leveraging this competitive advantage for close to 2 decades now.  UK-based clients of the company not only achieve average cost savings of up to 50% but also enjoy an increased service quality and program performance.

Cost-effective customer acquisition is an important competitive advantage for businesses globally. The Philippines is a country that provides companies the opportunity to do so without sacrificing quality, and that’s the name of the game.