mCommerce Insights

The Real Cost of Acquiring Customers in A Competitive Market


Customer Acquisition:

It's arguably the most necessary of all investments for the modern retailer, but one that remains something of a costly evil in the minds of so many in the eCommerce space. While there are dozens of tried and true methods for acquiring customers, the costs of these endeavors can make them prohibitive and ineffective, leading to skyrocketing CACs and bruised bottom lines.

If you're an eCommerce retailer and you've got an inkling that acquiring customers is becoming more expensive and more difficult, you're not alone. As major ad platforms that have been traditionally used for eCommerce customer acquisition become more effective and efficient than ever, megabrands invest more in them, effectively pushing smaller competitors into higher budgets or into finding alternate options. With so many competitors in the same industries seeking to target the same consumers, costs rise quickly. Let's see how steep the YOY increase has risen per channel:Screen Shot 2017-07-13 at 10.09.05 AM.pngWith costs up across the board, it's more difficult and expensive than ever to target the right users. Paired with Amazon's stifling ownership of many parts of the eCommerce market, acquisition can feel like a losing game for SMBs and enterprise retailers. However, it's not reasonable to assume we should abandon acquisition efforts either – the better solution is to get more out of every dollar spent on it. How?


While many of the costs associated with acquiring new customers are unavoidable, maximizing their value is a highly effective answer to the challenge. Read about our best practices for retaining customers through mobile in our whitepaper, The Loyalty Factor.  

Amanda Laviana

Written by Amanda Laviana

Marketing Communications Manager | Amanda is an experienced content marketer, with a background in advertising copywriting. She manages content across an array of platforms for Shopgate, including blogs, whitepapers, webinars, social media and video.


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