Profitable Customer Acquisition and Retention for Ecommerce and Marketing Leaders in 2022 – Internet Retailing

It’s no secret to business owners and marketing professionals that customer acquisition costs are rising. Industry estimates suggest that customer acquisition costs have increased by 60% over the past five years.

This trend is attributed to the increasingly strict privacy rules established across the world, Apple’s iOS 14.5 update allowing iPhone users to opt out of tracking from apps such as Facebook and Instagram, and the imminent disappearance of third-party cookies.

“We are now faced with the death of the cookie, which means huge changes in audience tracking and data collection. How do you understand your audience’s wishes and preferences now, do you personalize offers and are you adding value to the relationship so that it’s more meaningful than transactional?” said Clare Lawson, CEO of Ogilvy and speaker at Technology for Marketing 2022.

For e-commerce and marketing teams, this reduces the luxury of relying on third-party data to target the right users or convert high-quality leads with their ads; without speaking about collapsing trust for consumer advertising that began long before Apple’s 2021 iOS update.

“Brands have naturally opted for short-term survival tactics during the pandemic, but now they must shift to building long-term growth,” Clare added.

Coupled with the “cost of acquisition crisis” and post-pandemic recovery, businesses are also facing challenges this year that impact both marketing budgets and consumer decisions, including the fragmentation of the supply chain, inflation and the words on everyone’s lips: cost of – life crisis.

“There are all the indicators that we are heading towards recession. And as companies prepare for the impact, they invariably accelerate the process. It is a unique context in which we can all operate. But, just like at the height of the pandemic, e-commerce brands will have the opportunity to effectively engage customers,” said Karl Lillrud, TEDx and eCommerce Expo 2022 keynote speaker.

Recommended session: Digital commerce and the future of e-commerce as we know it

Achieve profitable customer acquisition and retention

Despite the difficult performance of paid social networks, 78% of businesses surveyed by CommerceNext will still prioritize this channel for acquisition over the next year, followed by paid search and influencer marketing.

To get the most out of your paid social spend, eCommerce and marketing teams may want to diversify the once proven Facebook and Instagram into other channels where costs may be lower like Snapchat, Pinterest, Spotify and the TikTok of increasingly popular.

Or if you’re looking for an even cheaper alternative to paid advertising, content marketing tailored to specific consumer interests can help build a strong brand identity, build authority, improve your organic search traffic, and deliver new opportunities to acquire visitors from organic social media.

Once you’ve successfully captured a potential customer’s attention via social media, the next step to making your acquisition budgets work harder and better is to create a positive customer experience.

Recommended session: Panel: Are influencers the new retailers?

Keep it personal

“Retailers are creating detailed customer personas and profiles that enable intelligently personalized experiences. Personalization is a powerful tool to accelerate customer journeys. The brands that will emerge stronger over the next twelve months are those that create compelling experiences to foster long-term relationships with customers,” said Karl.

Personalization at the acquisition stage can take many different forms. Consider offering discount codes, tailored product recommendations, personalized web pages based on the channel your potential customers are using, and transparent checkout options to avoid cart abandonment.

“Brands need to tailor their offering and messaging to what people want, which will drive repeat purchases and deliver long-term value. A fashion brand might be able to offer a 10% discount in exchange for an email address, but that doesn’t drive long-term value,” Clare said.

Without third-party data, acquisition-stage personalization through strategies such as geo-targeting becomes more difficult. It is therefore essential to convert paid traffic visitors into subscribers of your channels. Ideally, your marketing will take an omnichannel approach, leveraging various media such as your website, email, loyalty programs, social communities, mobile apps, SMS services, or even an existing physical store integrating your commerce channels. electronic.

First-party data can then be collected and analyzed using A/B testing and click-through rates, to launch custom retention strategies. The marketing automation tools available in many of your existing CRM platforms can also be implemented to cut costs by reducing menial tasks and freeing up staff workload.

Recommended session: Panel discussion: The future of CRM

Build trust to retain customers

It’s important to remember that your consumers value their personal data as much as companies view it as “new oil”. The Empathy.co team found that over 80% of people in the UK said they were worried about their data being tracked and sold to advertisers.

“Now is the time to restore privacy to the importance it deserves, and for retailers to win back the trust and loyalty of their customers with technologies based on privacy and openness,” said Lara Menéndez. , Product Director at Empathy.co and speaker at eCommerce Expo 2022.

If consumer data is misused, you will lose their trust and repeat custom, wasting your acquisition spend and making it more profitable to prioritize data privacy.

“Building trust is a real challenge, both in the technology industry and in the retail sector. The key is to keep innovating on search technology while maintaining consumer confidence. However, we see this as more than a challenge, we must embrace the fundamental truth: that individuals have a right to privacy,” Lara added.

To build that trust and maintain retention, brands need to communicate their measures to protect consumer data in a transparent and accessible way.

“Tech and digital industries have failed to understand human nature. They forget that ultimately they have to offer online experiences to human beings, with their feelings and their particularities. The data doesn’t always work there. The challenge is to put the data at the service of the person, and not the other way around,” said Lara.

Lose the fear that data alone can drive positive outcomes by allowing businesses to approach their communications with consumers with more empathy and to be future-proof in the face of changing privacy regulations that challenge purely data-driven marketing strategies.

Recommended session: Carrefour’s digital transformation through research and discovery: owning the stack and defending privacy

Turn Loyalty into Advocacy

This human approach to building consumer loyalty also extends to communicating a brand’s purpose and values.

“The cost of living crisis will affect consumer decisions and price sensitivity will be highest for functional purchases. But for discretionary purchases, the brand focus will become more important,” Clare said.

Ogilvy’s CEO advised against self-promotional stunts and insincere communications like “greenwashing” or a simple sustainability pledge in an email.

“People are looking to shop and are ready to have an active relationship with brands that share their concerns and purpose. Brands need to tailor their offering and messaging to what people want, which will drive repeat purchases and deliver long-term value,” Clare added.

With this approach, your loyal customers can become your best brand ambassadors by encouraging them to provide user-generated content – ​​a highly profitable customer acquisition tool.

For more information on profitable customer acquisition and retention, eCommerce Expo and Technology for Marketing is the place for you. Join over 10,000 retailers and brands at ExCeL London on September 28-29, 2022 – one ticket gives you access to both shows!

Register your free ticket for the eCommerce Expo

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