Consumer acquisition cost as an efficiency indicator of the company’s digital strategy

Abstract

The aim of the article. The goal of the article is to analyze the current state and trends in the development of the e-commerce market in conditions of growing digitalization and to consider the consumer acquisition cost indicator as an efficiency indicator of the company's digital strategy and to optimize engagement channels based on the obtained results.

Analysis results. At first, the pandemic was a turning point in the field of e-commerce, provoking a surge in the online shopping popularity and the need for businesses to modernize their operations to meet online requirements. The second impetus was the online shopping intensification by Ukraine population after the full-scale invasion of russia, as the need for basic purchases increased due to relocation and movement to safer regions, and almost everything could be purchased online. According to statistics, about 71% of retailers believe that digital transformation is an integral part of e-commerce technology. The rapid development and digitization of humanity has caused changes in the consumers purchasing behavior and the traditional marketing tools and methodologies transformation into new, more effective ones. Further projected growth of the e-commerce market will require businesses to build an effective digital strategy to effectively interact with consumers and meet their needs, creating product value and increasing brand awareness. Since there have been changes in traditional marketing tools in the digital direction, the methodology for evaluating the effectiveness of digital marketing strategies has also changed. Therefore, it is advisable to consider the indicator of the customers acquisition cost as an indicator of the company's digital strategy effectiveness for further channels of attraction optimization and other parameters of promotion and attracting customers online. In today's unstable conditions, it is important to keep customers and return those with whom you have already had experience of cooperation. It is advisable to stimulate repeat purchases with the help of relevant e-mails, notifications through messengers and loyalty programs. The main reasons for abandoned carts by customers are negative reviews, lack of or complicated return policies, and slow site or application performance.

Conclusions and directions for further research. Businesses should focus on effective promotion channels that have low CAC and attract many new customers by increasing their budget. When choosing such a main promotion channel, it is necessary to take into account not only the number of transitions, but also the number of conversions on the company's website. It is worth abandoning channels that show a mediocre result, because a large number of channels does not guarantee a wider reach of customers, on the contrary, such actions increase the cost of attracting a customer and are ineffective.

Keywords: digitization, e-commerce market, digital marketing, digital strategy, social networks, customer acquisition cost.

DOI: 10.15276/mdt.7.4.2023.6

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