Reducing the Cost of Customer Acquisition (CAC) for eCommerce
This is a guide on how to reduce your cost of customer acquisition in Bulgaria.
Collect Reviews Relentlessly
If a customer clicks your ad only to land on a product page with zero reviews, it is a turn-off. And 63% of customers are more likely to purchase from a site that has user reviews. If you are not collecting reviews, you could be doubling your CAC.
Incentivise Customers to Create User-Generated Content
It is one thing to read a positive review, but it’s another to see a real customer who’s excited about their purchase and can show it works.
If you are looking for a starting point, reach out to customers who have already left a positive review, and ask if they would be willing to create a short video of themselves talking about their purchase and showing off your product.
Leverage Social Proof in Ads
Just as social proof in the form of reviews lends credibility to your website, comments and likes lend extra credibility to your Facebook ads.
Facebook measures the likelihood that someone will click, comment on, or share your ad with a metric called engagement rate ranking. Aside from the extra value people may get out of positive comments on your ad, having an average or above average engagement rate ranking can also result in lower CPMs (costs per thousand impressions), which can also lower your CAC.
Capture Email Addresses
The average eCommerce conversion rate is 2.57%. That is a lot of missed opportunity. But you can almost double this number with an email opt-in form that presents an offer, like free shipping or 10% off. About 5% of visitors should opt-in.
Then, introduce yourself to your new subscribers with a welcome series. This is a series usually made up of three emails where you can tell customers about your brand, showcase best-sellers, and present the offer your subscriber signed up for.
Save Abandoned Carts
The average cart abandonment rate is 69.57%. Using email marketing to recover abandoned carts is one of the most straightforward methods to reduce your CAC.
And you don’t need to stop at just one email. Use a series of three emails to increase the odds of converting your new customer.
Reducing CAC for Lead Gen Businesses
If you sell some type of professional service for consumers or businesses, this is for you. In this context, reducing your CAC involves a few touchpoints: the total number of leads you get, how many of them are qualified, and your close rate. You may also have up-sell opportunities or repeat purchase opportunities that can increase your lifetime value.
Make It Easy for Prospects to Reach You Immediately
People who are ready to buy are more motivated to pick up the phone and discuss options. Make it easy for them to get in touch with you! Make sure your phone number is clickable and keep it above the fold so that it’s one of the first things visitors see when the page loads
Understand How Visitors Use Your Landing Page
Sometimes, visitors need thorough and detailed information to understand your service. But other times, people want quick answers or to get on the phone with someone. Use a heat-mapping tool to better understand visitors’ behaviours.