Understanding your customer is key to reduce your digital marketing costs to drive sales and increasing the average order value. According to Hubspot, 42% of businesses do not know their customers. Understanding who your online customer is and what their motivations are provides the foundation for a successful and sustainable eCommerce strategy.
With the cost of acquisition in Australia and globally rising, paying Facebook, Google, or Tik Tok to target “everyone” is fast becoming an unsustainable and expensive digital marketing activity. The average cost to acquire a customer using online advertising is around $30. For most retailers with an average basket size of sub $100, this does not add up. Taking into account production costs, digital platform costs, and shipping, many retailers are losing money on their digital media spend. Knowing your customer reduces the cost of acquisition, increases the average basket size, and drives more in-store and online customers, who are more likely to buy.
At a time when customers are shopping around for the best deal, loyalty is at an all-time low. The costs of digital are escalating. Now is the time to focus on the customer and to review your customer to ensure you are still aligned. In order to reduce your digital marketing costs.
Read the full article on how to reduce your digital marketing costs at the retail world magazine, page 20.
Kelly Slessor, is an Ecommerce Coach and a digital marketing expert. Passionate about retail, hospitality and retail service providers. As the founder and CEO of Shop You, an AI powered personalised virtual shopping mall she has spent 20 years building retail technology that responds to customer needs, drives conversions and increases revenue. Over the past year she has worked with over 1000 retailers and hospitality providers. If you want discover more about digital growth and optimisation, work with me.