Have they abandoned the carts?
Posted: Wed Dec 18, 2024 6:16 am
CAC is, as the name suggests, the price and costs associated with acquiring new customers. For example, if you spend $1000 on advertising in a month and get 200 customers, then your CAC would be $5.
However, it's important to note that CAC by itself isn't particularly useful without taking into account average order values (AOV) and customer lifetime value (CLV).
If the average order is only $6, then a CAC of $5 would be pretty ineffective. However, if your average orders are around $20, that's pretty good.
Similarly, look at what your CLV is (you can find plenty of CLV calculators by bc data taiwan searching online). If it costs you $5 to acquire a customer and your AOV is only $6, that may look pretty bad.
But …if your existing customers buy your products on a cycle (e.g. subscription or cyclical products like pet food or shampoo), then the $5 CAC is justifiable, given that in a year you can have $72 in orders with a $5 CAC.
So, when you're driving traffic to your store and busy building your lists, always keep an eye on your CAC to make sure your eCommerce email marketing strategy is paying off.
Email Marketing Segmentation
Email Targeting and Segmentation
Getting subscribers is great, and if you've followed my advice from the previous section, you'll now have a growing audience to work with.
However, don't make the same mistake that many eCommerce merchants make:
Send the same message to all subscribers.
No.
If you sell phone cases, there is a difference in age, gender, and behavior between the grandma who bought the phone case with a cute kitten and the teenager who bought the sci-fi-themed case.
Why treat them the same?
That's where segmentation comes from.
Segmentation is the ability of your email marketing platform to divide your subscribers into as many different segments as you want.
Email Marketing Segmentation
You can put them in static segments, like city, gender, etc. Or you can put them in dynamic segments, like "Purchased in the last 30 days" or "Hasn't opened an email in the last 60 days."
In fact, you can get pretty specific with your segmentation. Here, I’ve decided to create a segment of customers who have spent at least $50 on average since the beginning of the year:
advanced email segmentation
#1 How to get started with customer segmentation
When it comes to segmentation, get as simple or as advanced as you think you need to get to get better conversions for your eCommerce email marketing campaigns.
Here are some important questions to ask yourself when segmenting your subscribers:
Have they bought from you or are they still buying from you?
Have they interacted with your newsletters?
Did you purchase anything in the last 30, 60 or 90 days?
Did they buy from you during a special sale (like Black Friday, Christmas, etc.)?
Are demographics (age, gender, location) important to improve sales?
How did you get their email address (purchase, pop-ups, Wheel of Fortune, Facebook giveaway)?
By answering these questions, you can set up different segments and send them relevant content.
However, it's important to note that CAC by itself isn't particularly useful without taking into account average order values (AOV) and customer lifetime value (CLV).
If the average order is only $6, then a CAC of $5 would be pretty ineffective. However, if your average orders are around $20, that's pretty good.
Similarly, look at what your CLV is (you can find plenty of CLV calculators by bc data taiwan searching online). If it costs you $5 to acquire a customer and your AOV is only $6, that may look pretty bad.
But …if your existing customers buy your products on a cycle (e.g. subscription or cyclical products like pet food or shampoo), then the $5 CAC is justifiable, given that in a year you can have $72 in orders with a $5 CAC.
So, when you're driving traffic to your store and busy building your lists, always keep an eye on your CAC to make sure your eCommerce email marketing strategy is paying off.
Email Marketing Segmentation
Email Targeting and Segmentation
Getting subscribers is great, and if you've followed my advice from the previous section, you'll now have a growing audience to work with.
However, don't make the same mistake that many eCommerce merchants make:
Send the same message to all subscribers.
No.
If you sell phone cases, there is a difference in age, gender, and behavior between the grandma who bought the phone case with a cute kitten and the teenager who bought the sci-fi-themed case.
Why treat them the same?
That's where segmentation comes from.
Segmentation is the ability of your email marketing platform to divide your subscribers into as many different segments as you want.
Email Marketing Segmentation
You can put them in static segments, like city, gender, etc. Or you can put them in dynamic segments, like "Purchased in the last 30 days" or "Hasn't opened an email in the last 60 days."
In fact, you can get pretty specific with your segmentation. Here, I’ve decided to create a segment of customers who have spent at least $50 on average since the beginning of the year:
advanced email segmentation
#1 How to get started with customer segmentation
When it comes to segmentation, get as simple or as advanced as you think you need to get to get better conversions for your eCommerce email marketing campaigns.
Here are some important questions to ask yourself when segmenting your subscribers:
Have they bought from you or are they still buying from you?
Have they interacted with your newsletters?
Did you purchase anything in the last 30, 60 or 90 days?
Did they buy from you during a special sale (like Black Friday, Christmas, etc.)?
Are demographics (age, gender, location) important to improve sales?
How did you get their email address (purchase, pop-ups, Wheel of Fortune, Facebook giveaway)?
By answering these questions, you can set up different segments and send them relevant content.