Our Thinking – Strategic Brand Insights – MistryX

How Positioning Impacts Customer Acquisition Costs

Written by Preetum Mistry | Jun 23, 2024 11:00:00 PM

Summary

Teams often chase cheaper clicks or fresh creative to fix acquisition. It rarely works: fuzzy positioning muddies value, slows decisions, and depresses price. The enduring approach is brand as a demand system—clear choices, consistent signals, credible proof—converting intent into lower acquisition costs, quicker cycles, and stronger margins.



Watch The Video

In this video, Preetum Mistry (CEO & Managing Partner) explains how weak positioning inflates customer acquisition costs — and why those costs keep rising.


→ Watch more videos in this playlist on YouTube

Our Perspective

What this means for leaders navigating growth, change or transformation in their organisation.

The Hidden Tax

When acquisition gets pricier, the instinct is to tweak channels or creative. Useful, yes—but often beside the point. Rising customer acquisition cost (CAC) is frequently the price you pay for a fuzzy market position. If prospects can’t quickly grasp why you’re the clear answer, they either hesitate or push you into a price fight. Harvard Business Review notes that winning a new customer can cost 5 to 25 times more than keeping one, which means every ounce of confusion compounds the expense.

Think of positioning as upstream economics: it sets who notices you, what they infer, and how much proof they need. Clarity pulls fit buyers closer sooner; vagueness stretches the journey and inflates the bill.

Positioning As Friction

Positioning isn’t a slogan; it’s an operating choice that removes friction from the buying path. When value is indistinct, demand generation fills the top of the funnel with people who look right but never convert. Cycles lengthen, discounts creep in, and teams flood the field with materials to cover gaps that strategy should have closed.

In our experience with scale-ups, this normally shows up as a busy pipeline that doesn’t move, sales decks that multiply, and a creeping reliance on price-led offers to get deals over the line. None of that is a media problem. It’s the consequence of a brand that isn’t directing demand to the right doors.

Design The Choice

If the goal is lower CAC, make selection obvious. That requires choices leaders feel—and buyers see.

  • Define fit: who you are for, who you are not for, and the exact job you solve. Precision shrinks noise and raises relevance.
  • Align signals: pricing, channels, and messages should all echo the same judgement about value and audience.
  • Show working: use clear outcomes, credible references, and leadership narratives that bring the promise to life.

When the offer, story, and proof cohere, poor-fit interest filters out early, and the right buyers progress with less help and fewer concessions.

Leadership Implications

A positioning shift isn’t cosmetic; it reorganises effort and spend around a sharper bet.

  • Diagnose CAC by stage: where do deals slow or erode on price, and what value story was missing there?
  • Simplify decisions: trim segments, pare features, and retire channels that distract from your core choice.
  • Align incentives: reward qualified pipeline, clean handovers, and deal quality—not just volume.

Treat brand as the system that directs demand and you convert more of what you already reach. The reward is a quieter, faster pipeline where margins hold as scale increases and each new customer costs less to win.

Sources:

Further Resources

  1. Pricing Power Through Strategic Brand Positioning
  2. Maximising Brand ROI Through Strategic Positioning
  3. Brand Moves That Reduce Hiring Costs and Speed Up Recruitment


Curious how this applies in your market? We’re speaking with leaders across industries every week. Let’s talk.

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