Published by: Fera Team

As competition heats up and people become less receptive to messaging, the cost of acquiring new customers has steadily risen.

That’s why most businesses have started revising and optimizing their acquisition strategies for better profits.

But how can you do that? Do you need to be an expert? Should you have a degree?

No! It’s super easy, and anyone can do it.

This article will discuss 5 of the most effective strategies to reduce customer acquisition costs in eCommerce.

From optimizing your site to using discount codes, these tactics can help you save money and increase customer loyalty.

You can maximize your profits and grow your business with the right strategies.

Without wasting any more valuable time, let’s jump - shall we?

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What Is Customer Acquisition Cost?

Customer acquisition cost (CAC) is the money you spend to acquire a new customer.

This statistic will help you measure the return on your investment and effectively scale it in the long term.

How to Calculate Your Customer Acquisition Cost?

How to Calculate Your Customer Acquisition Cost

In order to calculate your overall Customer Acquisition Cost, all you need to do is add all of the marketing and sales expenses and divide them by the number of shoppers you got in that specific period of time.

Total sales and marketing expenses Γ· New shoppers aquired = Customer Acquisition Cost (CAC)

For example, let’s say that in the Q2 period of the year, you spent around $1,000 on marketing, and you only acquired 10 new customers.

Your customer acquisition cost is $100 or in other words, one customer will cost you $100.

What Is The Average Customer Acquisition Cost By Industry?

The average customer acquisition cost can inherently vary from one industry to another.

According to a recent study performed by Startup Talky, here are the average CACs by industry:

  • Travel: $7
  • Retail: $10
  • Consumer Goods: $22
  • Manufacturing: $83
  • Transportation: $98
  • Marketing Agency: $141
  • Financial: $175
  • Technology (Hardware): $182
  • Real Estate: $213
  • Banking/Insurance: $303
  • Telecom: $315
  • Technology (Software): $395

How To Reduce Customer Acquisition Cost in eCommerce?

Focus On The Right Audience

Focus On The Right Audience

When you’re doing your marketing, make sure that your business is focused on the right audience.

Break down your shopper personas and try to understand your niche. Even though this takes a lot of time and resources, it will pay off in the end.

You can share more personalized content with your target audience by getting a better picture of them.

This will help you focus your resources on potential customers with the highest likelihood of making a purchase.

Retarget Customers

Retargeting people that already visited your website from an initial outreach is one of the most effective ways to reduce acquisition costs.

As you might know, most customers can be easily disturbed by anything.

Sometimes, they are close to making a purchase but just get a phone call or an important message, so they immediately leave and forget entirely about the purchase.

A simple nudge at the perfect moment might encourage them to return and complete the initial purchase.

To retarget your visitors, try to gather as much data as possible.

You need to know their preference, behavior, and more. This information will be way more straightforward to retarget prospects and convince them.

Retargeting can generate a brand search lift of up to 1,046% - as stated in this study.

Use Social Networks

Use Social Networks

Social media has always been a popular way for businesses to reach and acquire potential shoppers.

You can take advantage of this by targeting consumers with certain ads based on their demographic, interests, and behavior.

So, now you understand why it’s essential to understand your audience first.

Another great way to acquire shoppers through social media is by offering promotions on Instagram or YouTube.

You will be capable of creating giveaways or discounts specifically designed for followers of your page.

This is a great way to drum up interest in your brand while offering value in return for their precious time and attention.

Implement Referral Programs

Implement Referral Programs

A functional referral program is a quick and affordable way to gather new shoppers and reduce your CAC.


Well, this specific technique relies on existing customers to do the promotion rather than having to invest a truckload of money in advertising.

Before you decide to implement a specific referral program, make sure that you properly research existing programs in your industry and look into integrating them into your system.

To ensure shoppers will start using your referral program, offering incentives such as discounts or free products in exchange for referring people is crucial.

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There are two ways that you can optimize your link shares - taking advantage of SEO or leveraging influencer marketing.

Search Engine Optimization

Search engine optimization, also known as SEO, is a fantastic way to improve visibility and enhance link-sharing opportunities.

Just focus on creating content that has targeted keywords that search engines like Google can easily recognize. Not only will this increase your rankings, but it will also drive qualified leads that are more likely to convert.

Influencer Marketing

Influencer marketing allows you to reach new audiences easier than ever.

Influencers have established relationships and credible reputations, so their followers trust them immensely and are more likely to support their recommendations.

To perform this successfully, you must identify an influencer whose audience aligns with your particular services or products.

Tracking Your Performance

Tracking Your Performance

Last but not least, you must track your performance to see how everything is going, so it’s essential to know how to calculate your average CPA (cost per acquisition).

This allows you to see how much they spend on acquiring each customer and help them make informed decisions moving forward.

This way, you can focus your resources on areas where they are getting the most bang for their buck.

Another great way to track your CPA is by using A/B testing.

By comparing different versions of content, such as promotional material, or website pages, you can make better-informed decisions regarding which type of content will yield higher conversion rates.

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As mentioned above, the eCommerce industry is fast-paced and filled with competition, making it easier to thrive with successful strategies.

To start reducing your customer acquisition costs, you must be incredibly strategic with your approach and make sure you’re targeting the right people, using social media networks, implementing referral programs, optimizing link shares, and tracking your performance.

By following all of these techniques, you can reduce costs and maximize your profits, which can lead to long-term success for your business.

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