How to maximise ROI on your digital acquisition costs
The cost of acquiring a new customer is called The Customer Acquisition Cost (CAC or CoCA). In its simplest form, it can be worked out by dividing the total costs associated with acquisition by total new customers, within a specific time period.
When you look at the different channels you are spending money on to not only build brand awareness but also to drive new people to your website, the costs quickly mount up. This activity can include SEO, link building, Pay Per Click, display and retargeting, paid social media, and affiliate and influencer marketing.
When you look at your monthly costs of attracting new people to your website, what can you do to ensure that you are getting a real bang for your buck?
Statistics vary from industry to industry, but research indicates that customer acquisition is a far more expensive venture than retention. In fact, it may cost up to 5 times more to acquire a new customer than to keep an existing one. So once you have a new visitor to your site it’s really important to convert them into a paying customer and keep hold of them tight.
The first true step in the ecommerce customer lifecycle is the very second a new customer first interacts with your website. Your brand’s method for attracting new people to your site may vary, but there are a few tried and true methods that work for every e-commerce brand. Is it usually one of key scenarios that happen when a new visitor arrives on your site:
- They do a straight bounce
- They browse across a few pages and then leave
- They browse across a few pages and register for an offer
- They search for and view products possibly add an item to cart and then leave
- They search and view products, add to cart and purchase
The first couple of scenarios are exactly what you don’t want and the first four are less than ideal. So we have highlighted some top tips on how to maximise your return on digital acquisition investment.
But first you need to imagine the ideal scenario of walking into your favourite high street store. You are greeted by a shopping assistant who can help you find exactly what you are looking for, that remembers your name when you come back a second time. An assistant that remembers your likes and dislikes, makes subtle suggestions to other products you may like, shows you what is trending now, and sends you an email when they have new products that you may like. Liken to those people who do have personal assistants catering for their every need. They know your budget, what you have bought in the past and what you will probably now need. Your personal assistant reminds you when you have put things in your basket and forgotten asking you if you still want them and hey, maybe throw in a freebie too.
So here are our top 10 tips on how you can translate that experience online and give your online shoppers an exceptional experience through the use of ecommerce personalisation software:
1. Grab their attention with a great incentive
Provide incentives to buy. Incentivise visitors with a discount offer to provide their email address. This can be done via a pop up, a registration form or at the point of checkout when completing a purchase or as a prominent link on the homepage.
2. Personalise your homepage content
Make the banner on your homepage as relevant to the known criteria as possible. By knowing information such as location / device / search terms / campaigns, plus what is currently trending overall, and the trends of other customers based in that location and customer segment, you can provide an extremely personalised web page based on these factors.
3. Utilise artificial intelligence and ecommerce personalisation
Use data driven real-time product recommenders that are based on what many first-time visitors have looked for. Show the visitor what is trending overall, what are the current best sellers. When a visitor starts to interact with your website either via the navigation or search, the AI starts to build up a clearer picture of what the customer is looking for. The AI then adapts the recommenders presented so that they are continuously relevant and will drive a higher click through rate and increase the visitor’s propensity to purchase. The AI can read the search terms looked for via search bar, and ensure all subsequent recommenders both on the search results and subsequent pages adapt in real-time and become relevant to that search criteria
4. Maximise use of email
For those customers that put items into their basket but do not purchase why not send a triggered email to them reminding them of the items they have left behind with a timely price discount for making the purchase. Re-engage with customers again with offers and products relevant to their customer profile and preferences. We all love a good email that feels like its been made just for you.
5. Display web pop-ups based on user’s actions and behaviour
Web pop-ups tend to get a 25-30%+ click rate depending upon the context of the message. Use web pop-ups to define intervention based on your users’ website browsing history and onsite activity. How? You can display web pop-ups based on their location, their buying behaviours, time of day, on any page within your website. Use exit intent popups to encourage customers to stay and continue shopping
6. Understand where your visitors came from
Look at the source of your traffic to your site via Google Analytics. For example, direct – show the first-order discount OR through Facebook ads – show offers aligned to the ads displayed (so that there is no mismatch when the user visits the website).
7. Leverage your visitors FOMO
Create FOMO by implementing signs of social proof. People like to follow the herd. If they think plenty of other people are buying your product, they’re more likely to do so as well. You have to be honest with your audience and create offers that resonate with them, however with creating a sense of time urgency for a great deal or offer that is too good to be missed, customers will more often than not buy before the offer slips through their fingers.
8. Ensure your website is mobile friendly
Convert more website visitors to customers with a mobile-friendly site. We do everything on our mobile phones. If your website isn’t mobile-friendly, it can be difficult for users to find it in searches conducted through a mobile device. It can make it impossible for users to use your site if they do land on it and can’t read it because it doesn’t adapt for a smaller screen.
9. Include testimonials
This is also a widely-used form of social proof. You can use testimonials to highlight the value of your products through the voices of satisfied customers. Customer testimonials notably contribute to customer’s purchasing decisions because 57% of customers said that reading testimonials is very/extremely important.
10. Include customer recommendations and reviews
Ratings and reviews have fast become a primary source of information for shoppers; almost all of the survey respondents by RetailDive—95%—say that they have consulted customer reviews at some point in the past. But one-quarter (24%) say they consult reviews for every purchase, and among shoppers 18 to 44, that figure is 30%.
Ratings and reviews as often seen as second only to price as the most important consideration affecting a purchase decision. Recommendations and reviews not only create trust but are a huge endorsement to your brand transparency and reputation.
PureClarity are specialists in ecommerce personalisation. We provide an innovative and cost effective software solution, which when plugged into your ecommerce store, delivers engaging online shopping experiences through a wide range of personalisation features. Proven to increase revenue by 26%, conversion by 71% and order value by 15%.
We empower online merchants to create powerful personalised 1-2-1 online shopping experiences that mirror those in received instore. This not only boosts their online sales, conversion rates and re-engages lapsed customers but helps them to build a loyal and valuable customer base.
The full range of PureClarity features, available to every client regardless of size, vertical or business type, is used across a wide range of industries including homewares, charities, sports and leisure, beauty, fashion and manufacturing. Even better, it supports B2C as well as complex B2B clients.
How PureClarity works
PureClarity works in real-time AI collects data 24/7 from every visitor interaction onsite but also collects data from offsite behaviour such as demographics, location, source of traffic, key words used, campaigns and device.
So, from the second a new visitor arrives on your website the AI has already built enough of a visitor profile to start providing a truly personalised experience. Based on the behaviour of a visitor from the minute they land on a retailer’s website, they look at the behaviour and data not only the individual, but also the segment of first time visitors that also matched their criteria and the overall crowd, meaning the trends and behaviours of the website overall.
This three-tiered analysis forms a deep dive into the visitor’s profile and can accurately predict requirements and trends of what that visitor will be interested in, present relevant products and in turn increase the website’s propensity to convert.