We all know acquiring new customers is a necessary cost, but if your customer acquisition cost (CAC) is too high, your profit margin will get smaller, and smaller, and smaller... well, you get the idea.
Calculating your CAC helps you understand how much you need to earn from each customer to have a profitable business. There are different ways to calculate your CAC, but before we do so, let's first define it.
Customer acquisition cost (CAC) is the cost to your business of earning a new customer. CAC includes all costs that contribute to getting your product into a customer’s hands. Costs such as sales costs, marketing costs, product costs, etc.
Instagram recently removed the swipe-up feature for Instagram stories and replaced it with new link stickers.
Users who have over 10,000 followers will see a new option in their sticker menu, which they can use to link any products. The linkable sticker may be released to all accounts following a trial period. **Crosses Fingers**
Instagram has surpassed 1 billion monthly active users worldwide, and over 500 million people use Instagram stories daily.
Because stories disappear after 24 hours, they can be more authentic than feed posts, making it easier to post more often. Keep people in the loop about product drops, limited releases, upcoming events, and offers you're running.
At Merchant Mastery, we often see startup merchants struggling to get traction with Facebook advertising. If your store is going to succeed, and sustainably scale, your online advertising is something you will need to master. And while SEO and publicity are great assets to have, they are highly unpredictable and will not produce the same, consistent, bang for the buck as interruptive advertising on social media platforms.
In case you missed it, Klaviyo introduced 4 MASSIVE product updates at its recent product event, to help merchants connect with customers better, with a key focus on ownership. Ownership of data, relationships, and the experiences they deliver.
Spoiler alert: There’s a lot of competition and the brands that are surviving are the ones that have a creative advantage. Brands using a lot of user-generated content (UGC) are performing relatively well. UGC gives an extra buffer to allow brands to still be profitable on the Facebook advertising side.