How to reduce your customer acquisition cost – The Right Way
Acquiring new customers is the primary goal of every new Ecommerce business today. Everyone is trying hard to acquire new customers at a fast pace, but at a reduced cost. But the key question that everyone has in mind is – How to reduce your customer acquisition cost
We all try to either increase our ad spends on our paid marketing channels or try to explore new channels to acquire new customers, but unfortunately the cost to acquire new customers does not come down significantly.
The cost of acquisition (CAC) generally remains high majorly because of the following reasons:
- Your CPC costs never goes down
- Your CPM costs are always increasing
- Your target customers are spoilt for choices and have more than ever before options to choose from
- The user’s attention span is all time low
Are you also facing the above challenge in your Ecommerce business? Don’t worry, since you’re not the only one facing this problem. Almost every Ecommerce business today is trying to find the right solution to fight this problem.
How do we Reduce your Customer Acquisition Cost?
Given the above problem in place, you have very limited options to reduce your customer acquisition cost (CAC). The best you can do is try to optimize your paid advertisements as well as your organic marketing efforts, but the control there is quite limited. However, what you can still do is to try and convert more visitors into paying customers, without increasing your advertising spends.
Suppose you are getting 10,000 visitors on your website and are able to generate 100 orders, then you are currently at a conversion rate of 1%. Now imagine, if you could increase these orders to 200 from the same 10,000 visitors, then you are doubling your customers and reducing your customer acquisition cost by 50%. Thus, if your conversion rate improves, your CAC comes down.
The above maths looks simple, but is that really possible? The answer is YES. All of the above is only possible with a comprehensive Conversion Rate Optimization strategy.
Conversion rate optimization (CRO) is an optimization process by which we strive to increase the percentage of visitors who complete a website’s goal. We identify and fix your website UI UX issues, analyze your visitor’s browsing behavior, identify purchase patterns and then focus on what motivates a particular user segment to engage in a certain way, with specific marketing elements.
Conversion Rate Optimization Process
We, at Cybez, follow a 3 step process for implementing a comprehensive CRO audit on any Ecommerce website :
Step 1 – UI UX Audit
We do a detailed audit of your website design and user experience. We analyze the key pages on your website using multiple devices, browsers, operating systems, etc. and identify possible conversion killers. We identify improvement opportunities that can help your website visitors make a purchase.
Step 2 – Web Analytics
After the UI UX audit, we do a deep dive on your website analytics as well as your customer purchase history and identify purchase patterns. We analyze customer behavior from different channels, their browsing patterns, their purchase behavior, top sold products, top returned products, etc.
The web analytics audit also helps us identify possible leakages in your conversion funnel. With this audit, we identify opportunities to fix issues which can help reduce user drop-offs and increase your average order value and net sales.
Step 3 – Marketing Audit
As a next step, we analyze your paid as well as non-paid marketing campaigns and understand your communication hooks, targeting and optimization strategy, which you use to get traffic to your website. We try and identify opportunities of improvement and improve relevance between the marketing communication, target audience and landing page.
Strategic Recommendations
Once we have data from all the above audits, we try and bring out meaningful insights about the user’s expectations when he visits your website, what he does on your website to fulfill his needs, and what made him buy or not buy the product/service from your website.
With these insights, we recommend certain strategic changes that you can implement on your website and marketing campaigns, to best match your user’s expectations.
Your Ecommerce conversion rates are bound to improve once all our recommended changes are implemented on the website. You will be amazed to see the drastic improvements across all your marketing channels with these changes.
Read our CRO case study : How We Increased Conversion Rate of an Ecommerce Website by 7%
With our conversion optimization strategy, you can be rest assured of positive results which can help you improve the following metrics for your ecommerce business:
- Reduce your customer acquisition cost
- Increase in ecommerce conversion rate
- Increase in revenue per visitor
- Increase in ROAS (return on ad spends)
- Increase in average time spent
Sounds interesting? With our comprehensive CRO strategy you can be assured of positive results for your ecommerce business.
Want to get a CRO audit for your website?
