One of the challenges facing all shredding and RIM companies is how to acquire new customers at a low cost.  Customers are the lifeblood of business, and without a steady supply of them, you might as well shut your doors.

There are dozens of strategies: Referrals from a friend, leads off your website, advertising on the Internet,  direct mail, email marketing, and cold calling.   But how much does each method costs?  How do you know how many customers they will produce?  What is the most cost-effective method?

At Shred Nations, we have spent the last 20 years building a technology machine to acquire new shredding and RIM customers.  Our system is easy to use, predictable, and is affordable for our shredding and RIM customers.  We advertise on the Internet, have a significant web presence, and use email marketing to target shredding and records prospects.  But because we sell to a nationwide network of partners, we leverage every qualified opportunity the comes our way.  We believe our system is by far the easiest and most cost-effective way to acquire new customers.

Over the next few weeks, we will compare the costs between Shred Nations and other marketing methods.  To begin with, here is a comparison between Shred Nations and pay-per-click advertising.


Pay-per-Click Advertising and Sales:

Pay-per click advertising (PPC), is the most popular type of advertising used by businesses on the internet.  Advertisers choose key words that correspond to the search terms their customers are likely to use, then place bids per click based on the principal that the higher the bid, the more the ad will be shown.

Google’s pay-per-click advertising platform, known as “Google Ads,” is the most popular type of PPC advertising.   Google Ads is a self-service platform providing the option to control the number and types of keywords, the form of each keyword (exact, broad match, phase match, and negative keywords) and the bid per click.

The 4-step process for getting an PPC campaign to pay for itself is complex and requires a great deal of work:

  1. Impressions – an impression is counted each time your ad is shown on a search result page. Users must see your ad before they can click on it. On average Click through Rate (CTR) for the Consumer Services Industry is 2.41% (source).
  2. Clicks – When someone clicks your ad, like on the blue headline of a text ad, that counts as a click and your account is charged a rate that is less than or equal to your set maximum bid. A click is counted even if the person doesn’t reach your website, maybe because it’s temporarily unavailable. The average Cost per Click (CPC) for the Consumer Services Industry is $6.40. (source). Once the user arrives on the landing page, the user chooses one of three pathways:
    1. They leave the website almost at once.
    2. They read some or all of your message, then leave.
    3. They read some or all of your message, then make a phone call or fill out a form. This is called conversion.
  3. Conversion – The average conversion rate for a landing page is 2.35% (source) – meaning that it will take over 42 clicks to get one conversion. At $6.40 CPC, one conversion will cost on average $272.00.
    A conversion provides an opportunity to communicate on a one-to-one basis with users. Most conversions represent users seeking general information while a few conversions will represent users with potentially good business. These users represent potential sales and a percentage of them could become closed business (customers).
  4. Customers – The conversions then need to be vetted for legitimacy and quality of business.
    Assuming that 20% (SN data) of conversions close and become customers, it requires five conversions to produce one customer. The cost per new customer becomes $1,360.

Simply put; once an impression is seen, 2.41% of people will click on your ad at a cost of $6.40. Of those people, 2.35%, or one for every 42 people, will complete an action (form or call) to create a conversion resulting in a cost of $272. At a closing rate of 20%, 5 conversions are needed to create one customer – resulting in a cost of $1,360.



Average CPC: $6.40

Average Conversion Rate: 2.35%


Cost of one Conversion: $272



Average Closing Rate: 20%


Cost of New Customer: $1,360




Cost of New Customer from Shred Nations: