As customer acquisition costs (CAC) continue to rise, it’s becoming increasingly crucial for eCommerce businesses to ensure that the money spent on marketing and advertising yields a substantial return on ad spend (ROAS). Over the last decade, CAC has risen by more than 70%. In a competitive market with growing data privacy concerns, it’s more important than ever to focus on completing customer journeys from product search to purchase.

The Growing Challenge of Customer Acquisition

Understanding why CAC is increasing is essential to developing effective strategies. The online competition is intensifying, and digital advertising costs are eating into marketing budgets. Moreover, the phasing out of third-party cookies and enhanced privacy measures in mobile software are making it harder to track and target customers effectively. Modern customer journeys are also more complex, involving multiple devices and touchpoints.

1. Seamless Product Discovery from Search to Purchase

Imagine a customer clicks on an Instagram ad for your store. Once they arrive at your site, ensure they can easily find the products they are interested in. Implement a robust on-site search function, optimize navigation, and create well-organized product collections. Use visual merchandising strategies to highlight popular or seasonal items. For instance, a “Product Finder Quiz” can help narrow down choices, leading customers to the exact product they need.

Implementation Tips:

• Robust On-Site Search: Use predictive search to help users find products quickly.
• Product Recommendations: Suggest complementary items with “complete the look” features to increase the average order value (AOV).
• Eliminate Dead Ends: Ensure no broken links or out-of-stock products derail the customer journey.

2. Cross-Channel Customer Nurturing

A potential customer who visited your site but didn’t make a purchase could be retargeted through personalized email campaigns, engaging social media posts, or timely SMS messages. Announce new product launches, share special offers, or remind them of items left in their cart.

Implementation Tips:

• Email Campaigns: Send personalized emails with special offers or product recommendations.
• Social Media Updates: Keep your audience engaged with regular updates about new products or promotions.
• SMS Marketing: Use SMS for time-sensitive offers or reminders about abandoned carts.

3. Personalized Promotions Based on Intent Data

Use data to understand customer intent. If a user frequently views high-end electronics, offer them a small discount on related accessories rather than a broad discount on all products. This ensures promotions are relevant and cost-effective.

Implementation Tips:

• Real-Time Personalization: Use customer data to tailor promotions and recommendations in real-time.
• Targeted Discounts: Offer discounts or incentives based on the customer’s browsing behavior and purchase history.

4. Building Trust Throughout the Customer Journey

Showcasing customer reviews and real-life photos of products in use can significantly build trust when purchasing costlier or bulkier items such as furniture. Promote user generated content on social media and on your website so customers can see the products being used in real life. Having an easy to understand and clear privacy policy lets customers know how their data will be used, further strengthening their trust in the buying process.

Implementation Tips:

• Customer Reviews: Display reviews prominently on product pages, also include reviews from platforms such as TrustPilot or similar to be displayed on the website
• User-Generated Content: Encourage customers to share photos of your products in use and feature these on your site.
• Clear Privacy Policies: Make sure your privacy policies are easy to find and understand.

5. Frictionless Checkout and Fulfillment

Streamline the checkout process by minimizing the number of steps required to complete a purchase. Highlight any savings or benefits, such as free shipping or fast delivery times, credit card or EMI options to encourage final purchases.

Implementation Tips:

• Simplified Checkout: Reduce the number of steps in the checkout process, offer 1 step checkout whenever possible.
• Fast Loading Times: Ensure your site and checkout pages load quickly to prevent cart abandonment.
• Transparent Pricing: Avoid unexpected costs that could deter customers from completing their purchase.

Bonus: Continuous Engagement and Loyalty Programs

After a customer makes a purchase, keep them engaged with follow-up emails that thank them for their purchase and invite them to join your loyalty program. Offer incentives for repeat purchases and create a community around your brand.

Implementation Tips:

• Follow-Up Communications: Send personalized thank-you emails and invites to loyalty programs.
• Exclusive Offers: Provide exclusive discounts or early access to new products for loyalty program members.
• Community Building: Use social media and forums to create a community of brand advocates.

With the increasing complexity and cost of customer acquisition, ensuring that customers complete their purchase journey is crucial for maximizing ROAS. By optimizing every touchpoint you can enhance the customer experience and build lasting relationships. The focus should be on maintaining digital journey continuity to foster repeat purchases and improve customer lifetime value, ultimately contributing to a healthy bottom line.