Angelica
Angelica

How to Lower Your eCommerce Customer Acquisition Cost Using Email Marketing Channels

To all of you eCommerce marketers, entrepreneurs and founders trying to lower your e-commerce customer acquisition cost (CAC) while maintaining – or even increasing – the number of sales and orders, this is going to be an interesting read.

In this blog post, we’re going to talk about how to reduce customer acquisition costs (CAC) using email marketing channels. Before we start, let’s go back to the basics of online marketing and marketing channel configuration.

When it comes to online marketing for eCommerce, there are various channels you can use to promote your brand. These channels include (but are not limited to) PPC (Pay-Per-Click), SEO (Search Engine Optimization), social media marketing, paid social ads, influencer marketing, and email marketing.

There’s no right or wrong answer when it comes to deciding what channels to use for your eCommerce business marketing. The strategy depends on the type of product you’re selling, as well as the segment or segments you’re targeting. However, a common denominator for all marketing strategies is the need to diversify the number of channels used.

Keep in mind that the trial-and-error method is an efficient one – don’t hesitate to drop a channel and focus on another one if you feel that it’s not productive. 

email marketing to lower ecommerce customer acquisition cost

Importance of (CAC) and Methods to Improve or Lower eCommerce Customer Acquisition Cost (CAC)

Before discussing email marketing channel and ways to reduce the CAC, let’s first get familiar with its concept. The key metric that determines the efficiency of any customer acquisition channel is the CAC and here’s how you calculate it.

The total amount spent on acquiring customers, divided by the number of acquired customers during the period this money was spent.

Based on this formula, there are two ways to improve this number:

  1. Cost-based approach: Lower the cost spent on acquiring customers while maintaining the number of acquired customers.
  2. Increasing efficiency: Keep the spending as it is, and focus on raising the number of acquired customers or sales using existing resources.

Which method you use depends on your budget. Not sure how to figure it out? We’ll tell you.

 

activate existing users through email marketing

Biggest Hack to Reduce Your CAC – Activate Existing Subscribers and Retain Paying Customers

The best way to reduce customer acquisition costs is by activating existing leads instead of looking for new ones. This can be carried out easily through the email marketing channel by sending strategic, segmented emails to people who have already subscribed to your newsletters.

In order to do that, you must have a clear and organized email marketing plan targeted towards a specific goal. We highly advise that you create an email marketing calendar for you to keep track of your content.

It’s also important to send the right message to the customers, which stresses the significance of the content of the email and most importantly the subject line.
For a detailed description on how to avoid spamming and sending random emails, check out this post.

If you allocate your resources to convert existing leads or subscribers into paying customers – and better yet, into retaining customers – through email marketing, you’ll reduce your overall customer acquisition cost.

In order to do this, you need to target the right customer base with the right message. Ultimately, this means you’ll need to create different segments –  interest-based, demographic, geographic or even behavioral-based segments.

After creating these segments, you’ll need to attract the leads or subscribers and existing customers using a strategy that fits your brand identity. Wondering how to accomplish that? Have a look at some tips on how to improve your email marketing strategy here.

Furthermore, you’ll need to make sure that you track your leads and customers at every step of the funnel. That is in order to send the right emails based on the stage they’re in within the buying journey. However, don’t overdo this – one or two emails per week will be more than enough.

Also, don’t worry about users unsubscribing from your emails – it’s not about the number of users you have, it’s about the users that you can actually convert. The rest of them are effectively redundant, so it’s better to have fewer, but high-quality users.

RevTap

Now that you know how to lower your customer acquisition cost using email marketing, you can begin designing your strategy. Or better yet, let RevTap do it for you.

RevTap uses real human experts and AI to generate a weekly, behavior-based email marketing campaign strategy, ready-to-use email templates and content for your eCommerce store. On top of that, RevTap also analyses past data and recommends optimized email send dates and times accordingly.

Raise your online store’s revenue by up to 22% –  while decreasing your CAC – by only investing 20 minutes per week.
The result? You have now sorted your email marketing.

Want to start your week-long free trial?  

 

Angelica
Angelica

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