In our latest whitepaper, we tackle the biggest challenges e-commerce businesses are facing: understanding your data in general and, more precisely, your customer acquisition costs (CAC). You can sign up and download the PDF right here - it's full of inspiration, useful tips and actionable insights for you to step up your marketing game.
Your cost of acquiring new customers - and especially customers that are likely to come back to you - is what can make or break your e-commerce business. Have it too high, and your company may tank. Nail it, though, and you are on your way to success.
In general, e-commerce is a relatively young but complex part of a modern business: with logistics, marketing, tech and constant optimisation, there is a lot of stuff that needs to be taken care of. An important part of your way exceeding your growth target is a sustainable client acquisition strategy - the more mature your business, the more complicated it gets.
We know from our daily work with agencies and e-commerce companies that this growth phase is especially hard to manage as many processes need to be adapted for scale and are therefore very cost-intensive. So, targeting a large audience in order to grow becomes particularly tricky for one reason in particular: keeping your cost per acquisition (CPA) sustainable and your client's life-time-value high (LTV) to have a positive ROI in the long run.
Your #1 priority: understanding your CAC and LTV
Insight into your marketing performance - especially CAC and your customers' LTV - is key to knowing which customers, channels and approaches to focus on. This data is your single biggest priority - but how can retailers survive these top data challenges? In order to reap the fruits from your data seeds, you have to make sure you tackle these five challenges full-frontal:
Knowing what data to capture
Understanding customer behaviour
Finding your technology solution
Ensuring analysis is impartial
Optimising website content - especially for your offline users
All details to these action points can be found in the white paper.
You can only manage what you can measure
Data creates value as it provides information about your users. The tricky thing is: the biggest chunk doesn't help. Our experience shows: data is good. More data is not. We know from working with marketers and agencies that it is easy to drown in data if you don’t know what you're looking for. One of the biggest challenges marketers and agencies are facing is having a data strategy - a plan what to do with data and how to create value from it. You can’t do business if you don’t know your customers well enough - learning about what your customers really want, need and are willing to spend their money on is somewhat of a main priority.
To get the best insights, you need to invest time and resources into collecting and analysing the right bits of information. As a marketer, you are likely swamped with tons of data already that, to the best of your knowledge, may be accurate, relevant and insightful. But what if it isn’t - at least not entirely? Can you really trust all those numbers? How can you be sure that there is no missing or incoherent data? Or what if there are blind spots and you don’t even know where to start looking for them?
To be able to fully rely on your data, you need to make sure that you don’t compromise on its quality. After all, you generate and collect data to have a fact-based decision-making process, so you better make sure you have one!