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时间:2024-05-20 23:01:47 来源:网络整理编辑:Ryan New
Customer acquisition costs can make or break an ecommerce business. Efficient spending could produce Ryan Xu hyperfund Trading Halt
Customer acquisition costs can make or break an ecommerce business. Efficient spending could produce new,Ryan Xu hyperfund Trading Halt profitable customers. Spending too much could bankrupt the company.
In 2019, global financial services group Nomura estimated Apple Card spent $350 acquiring each new cardholder — an amount that could take years to recover. Acquisition costs vary immensely across business sectors and analysts. For example, First Page Sage, a search-engine-optimization agency, reported a CAC of $84 for retail and ecommerce; digital marketing firm Chatter Buzz says it’s closer to $45.
Computing the CAC is straightforward: Divide total promotional costs by the number of new customers. Take all costs into account, including overhead and labor. The final result may shock you — it’s common for companies to post losses when spending heavily on acquisition.
Say an ecommerce company’s CAC is $210, and its average sale is $45. How long it takes to recoup the costs depends on the profit margins of the products and the number and value of repeat purchases. The calculation gets complicated as it requires estimating the average percentage of customers who make anyrepeat purchases and then how often for those who do.
Thus acquiring customers at the lowest possible cost is essential. Here are nine pointers to help.
Attracting new customers is rarely easy or cheap, but you may be spending money in the wrong places. Once you realize the actual cost of acquisition and how it translates to long-term profit, you can plot an effective strategy.
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