How to Lower Your Customer Acquisition Costs in eCommerce


New customers are the name of the game; they drive your NetSuite eCommerce business forward. But how do you know you are getting the most out of each one? Read on to learn about customer acquisition costs and how to keep yours under control.

What is customer acquisition cost? 

Customer acquisition cost, or CAC, is a measurement used by marketing professionals to determine how much it costs to gain a new customer. In the simplest terms, CAC is determined by the cost of your marketing divided by the total number of new customers your marketing campaign acquires. 

The first way to keep your CAC from spiraling out of control is to understand that this method is a simplified version of the equation. There are lots of little hidden costs that go into determining your CAC, many of which are specific to your company. For example, the true equation might read, “Cost of marketing, times employee salary, times rent, times subscription fees, times cost of freelancers, etc., divided by new customers.” Be aware of the true scope of your acquisition costs. 

Lowering your CAC

Fortunately, there are some rudimentary ways that you can lower your CAC, all of which involve maximizing your return on investment (ROI). 

Increase the value of each order

This is also known as “up-selling.” You want to find ways to make customers spend more money with each order. That means either up-selling them to a higher-value product or getting them to purchase additional items with each sale. Your on-site marketing should reflect suggestions and customer assistance features.   

Optimize your LTV

LTV stands for “Customer’s Life Time Value.” Again, this revolves around maximizing your ROI. You don’t just want your customer to spend more with each purchase; you want to foster an ongoing relationship with them, turning them into repeat customers. Here are some tips on how to do that.

Focus on automated processes

An easy way to cut down your CAC is by removing factors from the equation. By implementing automated processes, such as email marketing campaigns, a contextualized homepage, personalized ads, and an abandoned cart save program, you can remove time and potential salary costs from the factors driving up your acquisition costs. 

Control your costs

You can also approach the problem from the other end. By employing the right business intelligence tools, you can analyze different factors affecting your costs, such as which marketing channel nets you the highest number of customers or what demographic is giving you the most business.

Control your CAC, raise your ROI

When it comes to your overall return on investment from your marketing measures, your CAC is in the driver’s seat. By employing the above strategies and analyzing your acquisition costs, you can maximize your ROI and your bottom line in the process.

Tavano Team can help you implement the tools necessary to analyze and reduce your CAC, among many other strategies to optimize your NetSuite-powered eCommerce business.

Don’t hesitate to contact us today to get started. 

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