What is customer acquisition?
Customer acquisition is the process of attracting and converting new customers. It involves strategies designed to reach new audiences, guide them through the marketing ‘full-funnel’, and turn leads into sales.
Why is customer acquisition important for eCommerce?
While retaining existing customers is crucial in eCommerce, a steady flow of new customers keeps your revenue growing and brand awareness expanding. Acquiring the right customers translates into not just sales but potentially loyal brand advocates who can fuel further growth and boost online conversions. Unlike brick-and-mortar stores, your online reach is vast, so a strategic customer acquisition plan is essential to turn website visitors into paying customers.
How to measure customer acquisition
Measuring and tracking customer acquisition is essential to understand the effectiveness of your marketing efforts and make data-driven decisions.
There are several ways to measure customer acquisition:
- Customer lifetime value (CLV): This metric measures the total revenue a business can expect to earn from a customer throughout their entire relationship with the company.
- Conversion rate: This metric measures the percentage of website visitors who take a desired action, such as making a purchase.
- Average Order Value (AOV): This metric measures the typical total amount a customer spends each time they place an order.
- Click Through Rate (CTR): This metric measures how often people click on content such as a web page link, advertisement or email.
- Customer acquisition cost (CAC): This metric calculates the total cost of acquiring a new customer. It includes marketing expenses, sales costs, and any other costs associated with bringing in a new customer.
By tracking these metrics, you can gain valuable insights into your customer acquisition strategy and identify areas for improvement. This will help you optimise your marketing efforts and achieve sustainable business growth.
Examples of customer acquisition increasing strategies
There are numerous ways to maximise customer acquisition in the eCommerce landscape. Here are a few impactful strategies to consider:
- Social Proof: People trust the opinions of others. Incorporating social proof elements like customer reviews, testimonials ratings, and popularity messaging builds trust and encourages conversions. Taggstar’s Social Proof Messaging showcases trends, bestsellers in category, product views, what’s trending, inventory availability and more.
- Social media marketing: Organic and paid social media channels like Instagram, TikTok, Facebook and LinkedIn help brands interact with their target audience, grow new followers and acquire new customers.
- Search Engine Optimisation (SEO): Organic traffic from search engines is a powerful customer acquisition tool. Investing in on-page SEO optimisation and content marketing that targets relevant keywords helps your website rank higher in search results, attracting potential customers who are actively searching for products you offer.
- Events: In-person events like fashion weeks help brands interact with potential new customers, showcase the latest trends and attract customers.
- Giveaways and free trials: People love the chance to win something free. Hosting contests and giveaways on your social media platforms or website can generate excitement and attract new followers who might become future customers.
By implementing a combination of these strategies, eCommerce brands can effectively reach new audiences, build trust, and ultimately convert them into loyal customers.
How Taggstar can transform your customer acquisition strategy
Whether it’s highlighting essential product information with attribute messaging, or showcasing popular, trending, or bestsellers items with social proof messaging, Taggstar converts shoppers through the customer acquisition funnel.
Join the growing list of leading global brands & retailers that trust Taggstar to elevate their shopping experiences and drive significant sales lift. Get started today.
