Customer acquisition cost is the amount you need to spend on average to acquire a new customer. It’s probably the most effective way to determine the effectiveness of your marketing efforts, as well as the overall return on investment for your marketing.
The lower your cost to acquire customers the more customers you can acquire for each dollar you invest.
How to reduce customer acquisition costs with the help of eCommerce SEO?
If your customer acquisition cost in eCommerce is high, first you’ll need to uncover what is causing that imbalance. Digging into the data to discover whether it’s due to low conversion rates or pricey marketing is essential.
A good rule of thumb is to spend between 5-8% of your business’s total budget on marketing. If you’re exceeding that, look for ways to bring your spending down to lower your CAC. You can try to rely more on organic traffic sources and content, look for less expensive marketing platforms, and target potential customers better.
If you’re not spending too much on your marketing, but your CAC is high, the cause could be ineffective marketing and ads. Low conversion rates will also hurt your customer acquisition cost, so making your marketing work better without spending more money will reduce CAC and increase your ROI.
Here are some ways you can lower your Customer Acquisition Cost:
1. Review Your Marketing Research:
Knowing your customer is crucial if you want to lower your customer acquisition cost. You want to maximize the number of customers you convert and for that, you must first know your customer well, what are their needs, wants, and desires.
Before trying any other methods of lowering CAC, you must first review your existing current market research, buyer personas, and other relevant matters.
2. Put Up Review And Testimonials:
Reviews and testimonials from past and existing customers are valuable as they show your product is great and it helped your customers solve a problem they had. It is the most natural way to pull customers in without too much effort. Moreover, it is a free marketing asset for your business. There are many online store builders that have widgets that let you gather and show reviews.
Reviews and written testimonials are a great way to start. However, video testimonials may work even better as they let your happy customers tell their experiences and explain how the product has helped them in a more effective way. Indeed, 2 out of 3 customers are more likely to purchase from a brand after watching an online testimonial that demonstrates the way a product has helped them to get their needs met.
3. Use Marketing Automation:
Making use of marketing automation tools, like the lead nurture or email drip could also reduce your CAC. An example of this is by promoting the free trial or white paper via your paid media campaigns as well as making use of the email addresses you’ve accumulated to nurture leads. Consider the value you can provide to the leads. You already have them in the pipeline. A solid lead nurturing process can turn those prospects into customers who pay.
4. Optimize Your Funnels:
Google Analytics can be used as a powerful tool to understand user behavior flow across your web pages and see where exactly users are dropping off. You can use this data to improve your landing pages, website copy, and the forms on your website in order to lower the bounce rate, and eventually lower customer acquisition costs.
5. A/B Test Your Landing Pages:
A/B testing helps you test two variants of your landing page. Based on data you can extract from Google Analytics about bounce rates and exit pages on your landing pages, you can perform certain tests like changing a button color or call-to-action text. This can have an incremental impact on your conversion rates, hence improving your CAC.
It is a good idea to let a landing page A/B test run for 2-4 weeks, depending on the amount of traffic it gets, so you can have significant statistical data to make better decisions.
6. Publish Plenty Of Content:
This point is something that we cannot emphasize enough on. Content is essential for your business and you have to publish high-quality and useful content regularly to keep your audience entertained and engaged.
7. Make Use Of Webinars:
Webinars are a powerful marketing tool if you want to acquire new customers. Using a webinar, you can reach out to a mass audience, educate them about your product/service, demonstrate your products, and ultimately sell what you are promoting. When people get in direct touch with you, they will be able to trust you better. Hence, webinars can acts as a great marketing strategy for your business if used effectively.
Hence, we can safely say that effective eCommerce SEO services plays an important role in reducing customer acquisition costs. If you want to reach out to your target market, SEO is essential and cannot be ignored.