Any social media platform is good for marketing of any kind of business, but platforms like Facebook has been emerged so far as convenient solution provider. There are millions of companies and brands who have acquired messenger bot technology for solving customer’s problems, reduce CAC (Customer Acquisition Cost) or for increasing sales.

A business has a variety of expenditures that must be allocated to various categories, but the primary expense a corporation or organization incurs is brand awareness or marketing in order to bring in new clients who would purchase its goods.

Sales may be unexpected, and acquiring new clients might seem like a game of luck to many Ecommerce business owners.

Customer acquisition should be viewed as a process rather than as a final product if you want to expand your company steadily and profitably. This process should take into account how to methodically acquire new clients, the expense of bringing them in, and how much money each client will spend for your brand.

 

 

Facts & stats

The development of mCommerce (Mobile Commerce) is perhaps the main driver of this change in digital marketing strategies. Within the next five years, mobile is anticipated to overtake desktop as the preferred medium for online shopping.

By 2024, it is expected that mobile commerce will represent 45% of all e-commerce in the United States alone. Because the checkout process is not designed for a small screen and requires too many fields to fill out repeatedly; and mobile shopping, historically, has low conversion rates.

However, private messaging channels eliminate many of these inconveniences. They’re made with user-friendly processes in mind, which encourage better conversion rates. The most successful method for a marketing team to acquire customers may be an app, with Facebook, Google, and Apple all having a variety of options based on audience and entrance point.

Did you know chatbots have been used by 80% of individuals at some stage. On Facebook Messenger alone, there are more than 300,000 chatbots in use. The highest acceptance percentages for chatbots are found in online retail establishments and this year, $83.4 million was made via chatbot marketing globally.

There are 90 million small companies currently utilizing Facebook. To know more details clink on the source link here.

According to Facebook Messenger data, customers and companies exchange 20 billion messages each month. Over 300,000 messaging bots are available on the Facebook Messenger platform. The iOS store’s second most downloaded app; and first is Facebook Messenger app of all time.

Facebook users who use messenger make up 64% of its user base. Every month, 17 billion images are transmitted using the Facebook Messenger app and according to Facebook Messenger data, customers and companies exchange 20 billion messages each month.

Let’s get some knowledge about:

 

Difference between Customer Acquisition and Customer Acquisition Cost (CAC)

 

Customer Acquisition

Customer acquisitions means to acquire new consumers, often known as persuading individuals to buy your products, is referred to as customer acquisition. It is a technique used to move customers down the marketing funnel from brand awareness to purchase consideration.

You can acquire your customer through social media marketing, display advertising, content marketing, affiliate marketing etc. 

Customer acquisition is important because it helps in gaining new clients is crucial since it boosts referrals, brand recognition, sales, and company endeavors. There is a good chance that a new consumer will look at your company’s other goods or services. If they keep enjoying what they discover, they will tell their friends and family about your company, bringing in even more clients.

As your client base grows, word of your company will get out and your brand recognition will rise. Sales for your company will therefore increase as a result. Your ability to add additional services or goods or to grow into other areas will increase as your business makes more sales.

 

Customer Acquisition Cost

 

A key business indicator for assessing the expense of obtaining new customers is customer acquisition cost. Customer acquisition costs are the expenses incurred while obtaining a new client (or CAC for short). The process of client retention and re-acquisition takes over when the customer acquisition phase is over.

A solid grasp of CAC, which is determined as sales and marketing costs divided by the number of new customers, may help a business increase its marketing return on investment (ROI), profitability, and profit margin.

 

The formula of Customer Acquisition Cost

 

Suppose you are looking for  new customers for your companies sales, you have to do some kind of marketing of product or your business for raising sales so the amount you have spent is Rs 1000 (sales cost + marketing cost) for your marketing campaign and through the campaign you have gain 10 customers, so what you have to do is divide the marketing cost with your new number of customers.

Demo:

Cost = 1000/10 = 100

Your cost of marketing is Rs 100 per (new) customer.

 

6 Ways to reduce Customer Acquisition Cost (CAC) 

 

1. Know Your Customer’s Requirement

Getting to know your consumers better is the first and most crucial factor to take into account while trying to reduce CAC. Higher client acquisition costs may indicate that you are not providing the proper solutions to your customers through the appropriate channels or at the appropriate times. You may put yourself in your consumers’ shoes and determine what appeals to them and what doesn’t by developing buyer personas.

 

2. Know Your Target Audience

An examination of your target market helps you focus your marketing efforts and assures more consistency in your messaging, allowing you to forge closer bonds with clients and meet their needs.

 

3. Align Your Advertisements Appropriately

When compared to leads obtained through material downloads, those obtained through demo requests have a considerably higher likelihood of becoming paying clients. However, customers who are only seeking project management advice or templates are not likely to respond positively to an advertisement for a free trial of a project management platform.

It would be more logical in this situation to provide a free template or guidance. Based on who is responding to each preceding ad, you can then build retargeting advertisements for offerings that are gradually lower in the funnel.

 

4. Strengthening Story Positions

Make the advertising fill the whole device screen to make sure the user is fully focused on your message. Additionally, be sure that people can easily identify your brand so that they know who you are and what you’re trying to convey.

 

5. Utilize Bidding Techniques

Your bid strategy is the final element of paid advertising that might affect the cost of acquiring new customers. Utilizing bid methods can significantly lower your CAC and raise your basic Cost per action(CPA) at least on Google and Bing.

It discovered that Target CPA bidding works well for campaigns that have accumulated enough conversion data to maintain typical prices for sponsored search advertising.

 

6. Make Good Content – The Main Key

Content is always the key to marketing success. The writing on your guides and materials, their landing pages, and the advertising text that advertises them (and other non-content offers). If you want to reduce your customer acquisition costs, then you can do all these things that will help you in CAC.

As we previously stated, many businesses have opted for the use of bot messengers or social media platforms’ messengers. One of the E-commerce website builder, which is QPe, that was launched last year, however, has gained a tremendous reputation in the industry for its work toward all sizes of businesses, particularly small businesses.

How Facebook messenger can help to reduce CAC

 

 

Keep reading this article to explore and find out best ways to reduce CAC (Customer Acquisition Cost) in 2023 or in coming years.

 

How you can reduce CAC BY USING MESSENGER-

 

• To attract new customers you can send prospects into Messenger with Click-to-Messenger Ads so that you can qualify them, take payments, and continue the discussion there. Suppose your out of station bot will continue the chat with your customer query and all the query related to online products selling.

 

• Re-engage your customers by staying in touch with your consumers & announcing new items and upgrades.

 

• Establishing a trusted relationship with your consumers in their favorite social networking platform will keep them coming back to you, so you may not need to urge them to download multiple apps for ecommerce business. Building a strong relationship with your clients is a requirement.

 

• Asking customer reviews is a very important factor and a chatbot sends questions, requests comments, and displays the answers. Positive ratings on review websites can help you build your Ecommerce business or brand, and visitor comments will help you improve your internal procedures.

 

So, now that you know how you can lower the CAC or Customer Acquisition Cost by using Facebook messenger, but still trying to figure out how to make these techniques accessible more easily, then keep on reading.

There are numerous E-commerce solution providers who can help you achieve and grow business goals with proper strategies and marketing plans; and to save you more time we will discuss about one platform equipped with all-in-one POS management system and business solutions made for E-commerce business.

 

Let’s see how QPe can help E-commerce businesses to reduce Customer Acquisition Cost

 

QPe helps all businesses to grow in each and every category. When a company comes to an ecommerce platform all they want is to gain popularity in the online world. For that Qpe is the best option for you because it does give a name in the online sector by doing a high amount of marketing for their brand.

QPe helps all types of businesses to reduce customer acquisition cost (CAC) by creating bot messenger equipped stores within every social media page which are made for their marketing and better visibility for their products. Customers can directly approach orders over in-app messenger store and business owners can receive orders and instantly accept them and do the further procedure.

The order procedure for you is automated by the Messenger bot connected shop. In front of billions of prospective clients, showcase your goods/brand on Facebook and Instagram. Users can create stores integrated with Facebook Messenger bot then Messenger bot will automatically display the catalogue to the customers and  allow them to add products to the cart and checkout from there itself; this will allow to save a lot of time.

With QPe, selling on Facebook and Instagram is easy and the QPe includes many features of AI sales channels allowing users to manage the dashboard with an all-in-one Point of Sale system. To know more visit QPe’s Facebook-Instagram page.

By using the QPe dashboard, merchants can easily manage their orders, customers, sales, marketing, payments, and delivery from their eCommerce store by syncing it with the Facebook and Instagram applications.

Customers might be able to explore and purchase things from Facebook automatically through the synchronized eCommerce shop without the need for personnel. Users can also import their Facebook and Instagram accounts/pages onto QPe, then start using the social media marketing tools for Facebook ads to promote company and attract new clients.

You can opt to work with specialized Facebook Ads and Instagram Ads experts for Facebook advertising and Instagram advertising, respectively, to increase your company’s visibility and revenue.

 

Integrate your store with social media platforms & sell right away!!

Growth is the best and most important part of everything, especially important in business, without growth your whole hard work to build a company will go into waste. It’s crucial to be flexible since ad platforms change frequently.

Customer acquisition may help you expand beyond your present clientele, even customer loyalty and repeatedly acquiring business services are crucial to the overall health of your company.

Continuously experimenting with new channels and strategies is the only way to know which ones will be effective for your company’s customer acquisition strategy. This will help you determine which strategies are most effective for your particular industry and will keep you from becoming overly dependent on any one source.