13 Ways to Reduce Customer Acquisition Cost
Posted: Sun Dec 22, 2024 7:45 am
Some businessmen, having discovered an increase in marketing expenses, try to cut the budget or completely abandon advertising. But you should not react so radically. You can curtail a product promotion campaign at any time, but it is better to try to set it up correctly.
Placing advertisements on several platforms
Depending on the circumstances, it is indonesia mailing list recommended to use all available channels for attracting customers. For example, advertising in Yandex services, targeting in social networks, creating a Telegram channel, TV and radio, etc. You should also use SEO website promotion. This is an effective way to get leads. You need to use all options, including paid ones. And then, by comparing the results for each source, you can determine the most effective ones and focus on their development.
Eliminate expensive lead generation methods
To optimize the marketing budget, you need to determine the CAC with the highest possible accuracy. In addition, monthly monitoring of the statistics of each customer acquisition channel is necessary. Depending on the indicators, you can evaluate the effectiveness of a particular source of buyers and turn off those that bring losses.
A/B testing
This is one of the most popular ways to obtain an objective assessment of the effectiveness of marketing activities. Testing helps determine the most promising methods of promoting a product or service.
A/B testing
Source: shutterstock.com
By running several test ad campaigns, you can compare the results and make adjustments. For example, use other images, animation, play with colors and fonts, etc.
Constant monitoring of key queries
In order to make timely adjustments to the business process that reduce the cost of attracting customers, it is recommended to analyze the composition of keywords and phrases monthly. Using analytical tools, it is possible to determine the queries that bring the largest number of site users, and the most attractive phrases for potential buyers.
Use of relevant ads
If an advertisement contains information that does not correspond to the website content, visitors are highly likely not to place orders, which negatively affects the resource ranking and leads to an increase in the cost of CAC. In order to retain customers on the site and warm up interest in the offered products, you need to carefully monitor the relevance of advertising messages. For example, an advertisement mentions a 15% discount, but the website does not have any information on this matter, therefore, the buyer will be disappointed and is unlikely to visit the store again. To attract him again, you will need to spend much more effort without a guarantee of results.
Analysis of behavioral reactions of the target audience
Sometimes businessmen neglect the analysis of existing key indicators when conducting advertising campaigns, especially when the client base is already formed. But there are coefficients, the usefulness of which is obvious to all specialists. One of such metrics is the user's behavioral response.
Any modern website is a complex software product that is not immune to unexpected failures. Therefore, it is necessary to periodically monitor the actions performed by visitors to the page.
Let's say we managed to detect multiple clicks on the "confirm order" button, but there are much fewer actual purchases, which means there is a possibility of some kind of malfunction. This situation often occurs when using the mobile version of the marketplace.
Creating a simplified application form
Marketers have found out that customers do not like to fill out extensive and multi-step registration forms. Monotonous filling out of various data in many fields can scare off even the most patient customer. For this reason, it is recommended to use types of applications that contain only the necessary information - for example, name and phone number. Everything else can be found out later. For example, in the form of an offer of discounts, for which the customer will indicate the information of interest to the entrepreneur.
Using Lead Magnets to Get Contacts
An effective way to reduce the cost of attracting a client. Some users visit the page of an online store out of curiosity, without a clear desire to make a purchase. But at any moment they can change their mind and buy the product they like. Therefore, it will be useful to develop a lead magnet and place information about it on the site.
A potential client will see an interesting offer and, perhaps, will leave their contact information to receive instructions, a checklist, an advertising brochure, etc. Due to this, the lead base is replenished, which can be worked with by connecting, for example, an e-mail newsletter.
Monitoring the competitive market
If a businessman cannot clearly state the advantages of his company, then he is unlikely to have an idea of the position of his closest competitors in the niche market. Studying the strengths and weaknesses of competitors gives much more room for maneuver.
It is necessary to conduct a thorough evaluation analysis quarterly (or better yet, once a month) – record offers and unique selling propositions of other companies in a separate file. This approach will allow you to strengthen your advantages and neutralize your disadvantages, which will lead to a decrease in the cost of attracting a new client.
Connecting retargeting
As a rule, the interest in the offer of users who have already visited the resource but have not yet made a purchase is higher than that of the rest of the target audience. The use of such a tool as retargeting allows you to reduce the costs of advertising activities, since its cost is less than that of other types of marketing.
You can return leads by offering something that interests them. Often, a special section is created on the site for such users, where they can receive some kind of bonus or gift. Contextual advertising will encourage a person to make a full order in the online store.
Working with look-alike audiences
Another effective way to transform leads into regular customers. Look-alike audiences are people who have similar reactions to representatives of target audiences. Advertising for these segments is focused on social networks. The Yandex.Direct service has a similar tool that allows you to display ads to potential buyers.
Excluding non-target audience segments
In order to achieve greater savings when attracting a client, you should exclude people who make up the active part of buyers from the ad display settings. This method is not universal, and when using it, you should take into account the specifics of business processes. For example, if a regular user of a social network bought a course on targeting and completed training under the program, he is unlikely to be interested in an ad about a subject that he has just studied. In this case, the entrepreneur will only waste his money. Therefore, if the product is unique and is sold to each client only once, it is simply necessary to exclude non-target users.
Control over the activities of managers
Sometimes businessmen with excellent marketing tools that attract many visitors notice that the number of applications and sales volume do not grow. One of the reasons may be poor management. For example, specialists pay little attention to promising channels or use ineffective scripts. In this case, it is necessary to carry out measures to improve the qualifications of personnel. Another possible solution is to delegate managerial functions to outsourcing.
Placing advertisements on several platforms
Depending on the circumstances, it is indonesia mailing list recommended to use all available channels for attracting customers. For example, advertising in Yandex services, targeting in social networks, creating a Telegram channel, TV and radio, etc. You should also use SEO website promotion. This is an effective way to get leads. You need to use all options, including paid ones. And then, by comparing the results for each source, you can determine the most effective ones and focus on their development.
Eliminate expensive lead generation methods
To optimize the marketing budget, you need to determine the CAC with the highest possible accuracy. In addition, monthly monitoring of the statistics of each customer acquisition channel is necessary. Depending on the indicators, you can evaluate the effectiveness of a particular source of buyers and turn off those that bring losses.
A/B testing
This is one of the most popular ways to obtain an objective assessment of the effectiveness of marketing activities. Testing helps determine the most promising methods of promoting a product or service.
A/B testing
Source: shutterstock.com
By running several test ad campaigns, you can compare the results and make adjustments. For example, use other images, animation, play with colors and fonts, etc.
Constant monitoring of key queries
In order to make timely adjustments to the business process that reduce the cost of attracting customers, it is recommended to analyze the composition of keywords and phrases monthly. Using analytical tools, it is possible to determine the queries that bring the largest number of site users, and the most attractive phrases for potential buyers.
Use of relevant ads
If an advertisement contains information that does not correspond to the website content, visitors are highly likely not to place orders, which negatively affects the resource ranking and leads to an increase in the cost of CAC. In order to retain customers on the site and warm up interest in the offered products, you need to carefully monitor the relevance of advertising messages. For example, an advertisement mentions a 15% discount, but the website does not have any information on this matter, therefore, the buyer will be disappointed and is unlikely to visit the store again. To attract him again, you will need to spend much more effort without a guarantee of results.
Analysis of behavioral reactions of the target audience
Sometimes businessmen neglect the analysis of existing key indicators when conducting advertising campaigns, especially when the client base is already formed. But there are coefficients, the usefulness of which is obvious to all specialists. One of such metrics is the user's behavioral response.
Any modern website is a complex software product that is not immune to unexpected failures. Therefore, it is necessary to periodically monitor the actions performed by visitors to the page.
Let's say we managed to detect multiple clicks on the "confirm order" button, but there are much fewer actual purchases, which means there is a possibility of some kind of malfunction. This situation often occurs when using the mobile version of the marketplace.
Creating a simplified application form
Marketers have found out that customers do not like to fill out extensive and multi-step registration forms. Monotonous filling out of various data in many fields can scare off even the most patient customer. For this reason, it is recommended to use types of applications that contain only the necessary information - for example, name and phone number. Everything else can be found out later. For example, in the form of an offer of discounts, for which the customer will indicate the information of interest to the entrepreneur.
Using Lead Magnets to Get Contacts
An effective way to reduce the cost of attracting a client. Some users visit the page of an online store out of curiosity, without a clear desire to make a purchase. But at any moment they can change their mind and buy the product they like. Therefore, it will be useful to develop a lead magnet and place information about it on the site.
A potential client will see an interesting offer and, perhaps, will leave their contact information to receive instructions, a checklist, an advertising brochure, etc. Due to this, the lead base is replenished, which can be worked with by connecting, for example, an e-mail newsletter.
Monitoring the competitive market
If a businessman cannot clearly state the advantages of his company, then he is unlikely to have an idea of the position of his closest competitors in the niche market. Studying the strengths and weaknesses of competitors gives much more room for maneuver.
It is necessary to conduct a thorough evaluation analysis quarterly (or better yet, once a month) – record offers and unique selling propositions of other companies in a separate file. This approach will allow you to strengthen your advantages and neutralize your disadvantages, which will lead to a decrease in the cost of attracting a new client.
Connecting retargeting
As a rule, the interest in the offer of users who have already visited the resource but have not yet made a purchase is higher than that of the rest of the target audience. The use of such a tool as retargeting allows you to reduce the costs of advertising activities, since its cost is less than that of other types of marketing.
You can return leads by offering something that interests them. Often, a special section is created on the site for such users, where they can receive some kind of bonus or gift. Contextual advertising will encourage a person to make a full order in the online store.
Working with look-alike audiences
Another effective way to transform leads into regular customers. Look-alike audiences are people who have similar reactions to representatives of target audiences. Advertising for these segments is focused on social networks. The Yandex.Direct service has a similar tool that allows you to display ads to potential buyers.
Excluding non-target audience segments
In order to achieve greater savings when attracting a client, you should exclude people who make up the active part of buyers from the ad display settings. This method is not universal, and when using it, you should take into account the specifics of business processes. For example, if a regular user of a social network bought a course on targeting and completed training under the program, he is unlikely to be interested in an ad about a subject that he has just studied. In this case, the entrepreneur will only waste his money. Therefore, if the product is unique and is sold to each client only once, it is simply necessary to exclude non-target users.
Control over the activities of managers
Sometimes businessmen with excellent marketing tools that attract many visitors notice that the number of applications and sales volume do not grow. One of the reasons may be poor management. For example, specialists pay little attention to promising channels or use ineffective scripts. In this case, it is necessary to carry out measures to improve the qualifications of personnel. Another possible solution is to delegate managerial functions to outsourcing.