Every eCommerce website owner wants to acquire more customers. But have you ever wondered how much do you have to spend to acquire customers? If the customer acquisition cost is too high,is it really worth getting the customers?
Questions are many, the solution is one: reduce customer acquisition. Go through the following strategies to get adetailed understanding of how to reduce customer acquisition cost.
Before getting started, let’s quickly find out the formula of ROI. It will help you to understand how reducing the customer acquisition rate will impact your overall revenue.
Return on Investment = (Profit / Investment) x 100
Customer Acquisition Cost: An Overview
Customer acquisition cost is included in investment. As you can understand, even if your business makes plenty of sales,you may lose money if there’s no balance between profit and investment.
Here’s how to calculate customer acquisition cost:
Customer Acquisition Cost = sales and marketing cost/ new customers
To get a detailed insight into customer acquisitioncost, calculate your average customer lifetime value. For that, youneed to multiply the average monthly or yearly order total per customer times the number of months or years av average customer continues to place an order on your e-store.
Now, let’s get started with the strategies ofreducing customer acquisition cost.
Quick Strategies to Reduce Customer AcquisitionCost for Your E-Store
Enhance Conversion Rate
This is the most simplistic solution for reducing thecustomer acquisition rate. Invest in professional eCommerce website development services so as to ensurethat your site is conversion-driven.
Also, optimize your e-store from time to time so thatit performs at its best all the time. Here are a few aspects to bearin mind to enhance your site’s conversion rate:
- Keep your site safe
- Ensure top-notch loading speed
- Streamline navigation
- Optimize for mobile devices
- Include high-quality product images and videos and a detailed description
- Facilitate live chat
- Add product reviews
- Highlight the CTA button and make it easily tappable
- Let users save their wishlist and cart
- Offer free shipping
- Provide limited time coupon codes
- Ensure glitch-free and secured checkout
- Facilitate guest checkout
This blog explores how to find and fix UX issues on your e-store. Give it a read.
Retarget Customers
Retargeting is a great practice to bring back thecustomers who had earlier interacted with your business. Naturally,they have a higher potential to convert.
Retargeting caters to the audience who have browsedyour products, added products to wishlist and cart, but bounced before purchasing. A gentle nudge can encourage them to complete apurchase they have left behind.
About 70% of marketers opt for retargeting and it canreduce cart abandonment by 65% (source: TrueList). Leverage thisbeneficial strategy and reach out to prospective customers. In orderto successfully retarget the leads, collect as much data as possible. You should be aware of their behaviour, motivation, preference, and more. With all this information, it will be easy for you to retargetprospects and convince them to buy from you.
Comprehensive Range of Marketing
Marketing plays a crucial role in reducing customeracquisition cost. Of course, you need to spend resources on hiringprofessional digital marketing services.But, with their immense experience and expertise, the professional marketers will make your every penny count. Here is a list of the top10 digital marketing companies in India. Check it out and selectyour favourite one.
The marketers will channel marketing efforts in theright direction. You need a comprehensive range of digital marketingto acquire customers from all the platforms.
Invest in SEO services so as to drive organic traffic. That way, you need not invest toomuch in paid marketing and you can save the money that you have to pay to the search engines or third-party websites whenever people click on your ad.
Other than social media marketing on channels like Facebook, Instagram, LinkedIn, Pinterest, etc. you need to invest inemail marketing. It will help you to acquire more customers.
Focus on Building a Loyal Customer Base
Acquiring customers can only increase your revenue ifyou can retain them. If you have a customer base that always returnsto your site for purchasing products, your customer acquisition cost will automatically reduce.
A study by Invesp states, on average, repeatcustomers spend 67% more in the third year of their relationship witha business than in the first six months. It is easier to convince existing customers to buy products than to convince new customers who are yet to interact with the brand.
Therefore, pay attention to building a loyal customerbase for your company.
Follow these strategies to reduce your customeracquisition cost. This will help to increase your revenue, build aniche audience, and grow your business.
What are your thoughts on this? Feel free to sharewith us.
