How to Acquire E-Commerce Customers the Right Way
In the world of e-commerce, acquiring e-commerce customers the right way is important. Without customers, a business cannot survive or grow. Keep reading to learn more about how to acquire e-commerce customers the right way and how to implement strategies for your e-commerce business.
What is customer acquisition?
Customer acquisition is the process of attracting and acquiring new customers to a business. This process starts with identifying potential customers, understanding their needs, and creating strategies to convince them to become customers.
The most important part of customer acquisition is making sure that your process is measurable and repeatable.
Customer acquisition cost
When it comes to customer acquisition, it’s important to consider the cost. This metric is referred to as customer acquisition cost or CAC. This number includes all costs associated with attracting and converting a customer. It varies widely not just by industry, but also by store.
The formula is as follows:
CAC = total cost of customer acquisition/number of customers acquired
According to Neil Patel, the average CAC varies depending on the industry. For instance, the CAC for e-commerce businesses ranges between $10 to $50. Knowing your store’s CAC can help you set a realistic budget and optimize your customer acquisition strategy.
Acquiring e-commerce customers with strategies
There are many different customer acquisition strategies that businesses can use for customer conversion. However, not all customer acquisition methods are created equally. Here are a list of some of the most effective:
Social media marketing
First, we have social media marketing. Social media has become a huge tool for businesses in customer acquisition. Platforms like Facebook, Twitter, TikTok, and Instagram provide an opportunity to reach millions of potential customers with minimal costs.
Furthermore, social media marketing can attract customers by creating engaging content, building overall brand awareness, and driving website traffic.
Influencer marketing
Influencer marketing is a by-product of social media marketing. This strategy is when brands partner with influencers to promote products or services. Influencers have a significant following on social media but are usually not traditional celebrities. Some are considered experts in their field, while others are just well-liked for their lifestyle. Influencer marketing can be an effective strategy because it allows businesses to reach an audience that is highly engaged and leverage the trust between the audience and the influencer.
Paid advertising
Paid advertising is when businesses pay for ads to reach their potential customers. This form of advertising can include pay-per-click (PPC) advertising, display advertising, and social media advertising. This is a very effective customer acquisition strategy, but it can get expensive quickly. Businesses need well-targeted and optimized ad campaigns to acquire new customers without spending a pretty penny.
Email marketing
While email marketing may not be a new strategy, it is definitely effective. Leveraging an email list is something that can do wonders for your customer acquisition. Through email marketing campaigns you can promote discounts, events, and other important information. The best part about email marketing? You’re guaranteed to make contact with your intended target. Social media advertising tends to cast a wide net, whereas email marketing involves speaking to people that you know are interested in your product.
Referral marketing
Did you know that you can use existing customers to reach new customers?
Referral marketing is a strategy that encourages existing customers to refer new customers to the business. This most often tackled through incentives. You can incentivize existing customers to share your store by offering discounts, free products, or other rewards in exchange for successfully sharing it with a friend.
As humans, we are more likely to trust recommendations from real people over ads. That being said, referral marketing can be a very effective strategy!
Lifetime value
Lastly, we have LTV. You may have heard of customer lifetime value (LTV) before. Put simply, this is the revenue you earn from a customer over a long period of time. LTV can become a huge tool in customer acquisition. The higher your LTV, the more you can spend on customer acquisition. This is because if you are earning more from a customer, you can defend spending more to acquire new.
The importance of acquiring e-commerce customers
Customer acquisition is essential for the success of any e-commerce business. By acquiring new customers, brands can increase revenue, expand market share, and build a measurable, repeatable business model. Customer acquisition also enables businesses to create a loyal customer base, which will continue paying off in the future.
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