In a time when marketing is crucial for eCommerce business, it can be nearly useless without measuring its effects and results!
As marketing gets more detailed and more technical, and as consumers’ purchasing journeys get more complicated, marketers will find it hard to proceed with their marketing activities. Measuring and analyzing the results of your marketing activities and campaigns with the right marketing metrics help marketers know what works best for them and what doesn’t.
Moreover, there is no business that would want to spend more than their advertising budget. In that case, PPC helps you to limit your budget spent through Google Ads which allows your business to set a limit on your daily and monthly ad spend. After that, you can check and analyze exactly how your budget has been spent in Google Ads, hence, optimize your budget and marketing campaigns in the upcoming period.
One of the most important marketing metrics is the cost per acquisition.
In this article, you will learn why and how to reduce the cost per acquisition for Google ads campaigns to achieve the best results.
Table of Content:
- What is the Cost Per Acquisition (CPA)?
- 5 Reasons Why You Have To Reduce Your Cost Per Acquisition (CPA)
- 10 Effective Strategies To Reduce Cost Per Acquisition (CPA) In Your eCommerce
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Get The Lowest CPA with Convertedin’s Automated Marketing Systems
What is the Cost Per Acquisition (CPA)?
CPA is the cost of getting a prospect to complete an action that leads to a conversion. CPA should be less than the revenue the customer brings in over time. If so, then your marketing efforts are on the right track. Reducing your CPA is important to maximize your profit and gain new customers, and it helps your budget to be allocated in the right place.
Know exactly why and how to reduce your CPA in the parts below.
5 Reasons Why You Have To Reduce Your Cost Per Acquisition (CPA)
Your goal should be lowering your cost per acquisition so much and driving the highest possible ROI. Reducing CPA can result in increasing your return on investment (ROI). Here are some reasons why you have to reduce it:
- With no additional cost, reducing CPA will directly increase your eCommerce business ROI and revenue.
- Controlling and optimizing your costs and budget.
- It pushes you to increase the ROI of each purchase made by one of your customers.
- It helps you know exactly how much your eCommerce business should spend to gain new customers.
- It shows whether or not the activities you are doing in the fields of marketing, sales, and customer retention are running efficiently.
10 Effective Strategies To Reduce Cost Per Acquisition (CPA) In Your eCommerce
Here are some of the best tips and tricks that you can implement in your eCommerce business strategy to reduce your acquisition costs in your PPC marketing campaigns and increase your ROI.
1- Design A Simple & Appealing Landing Page
First impressions last! Your website landing page is the first thing a customer sees after pressing on the ad. Your landing page can have a great effect on your new potential customers. You can try doing A/B testing to analyze different strategies and apply the best for your audience.
2- Don’t Target Too Broadly, Be Specific
Getting more customers by targeting as many locations as possible is a myth. Targeting too broadly can let your ad reach uninterested people. Do your research and target your audience specifically in their precise locations.3- Create Video Campaigns
Video is one of the most appealing and efficient content types to drive engagement and ROI. 89% of marketers would agree that their video marketing efforts have delivered them good ROI. Also, research shows that 80% of marketers say video has increased traffic to their website and the average time visitors spend on their page.
4- Play on Your Customers’ Emotions
Research has proven that emotions drive our behavior, while logic justifies our actions after the fact. Did you know that humans associate the same personality traits with brands as they do with people?Telling your customers your product features can appeal to their logic. However, that doesn’t always guarantee results. On the other hand, appealing to their emotional part can help you achieve the results you dream of. Get creative and emotional with your copy as much as you can.
5- Use Retargeting
Retargeting helps you reach customers who have previously visited your site by showing them relevant ads on other sites they visit within the Google Display Network. This can happen through display ads which can help you convert your visitors into actual shoppers. Bearing in mind that only 2% of leads convert on their first visit to your site, using retargeting is crucial for your eCommerce.6- Use Smart Bidding
Smart Bidding is all about automated bidding strategies that use machine learning to optimize for conversions’ value in every auction—a feature known as “auction-time bidding" based on set targets.
7- Maintain Your Quality Score
Quality score is Google's way of giving advertisers a tool with which to improve their campaigns. It tells you how well your ad quality compares to other advertisers. It is a valuable tool for identifying ways to improve your ads, keywords, and landing pages.8- Optimize Your Paid Campaign Settings
Choosing your campaign’s settings can be deceiving. Certain campaign settings can eat up your budget if they are not aligned right with your goals. Make sure your PPC campaigns are targeting only your target audience’s location, languages, networks, interests, and devices. Make sure your PPC campaigns are not targeting all devices, languages, and locations in the world! This can help you optimize and save your budget.9- Be Creative with Your Ad Copy
Write your message in a simple form and make sure it aligns with goals and objectives. Understand your audience right so that you can communicate with them in the best way that can convert.
10- It’s All About Keywords
First thing you need to start using negative keywords in your ads. Moreover, you need to run a Google Experiment on your keywords to check and analyze their impact and try to lower your bids for keywords as much as possible.
Most importantly, stop using keywords that are irrelevant to your audience or keywords that fail to convert.
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Now you can automate all your marketing campaigns, including your Google ads campaigns to get the lowest CPA you need, increase your sales, drive more traffic to your website, convert more leads and acquire more potential and new customers. Target, convert, and retain customers with Convertedin. Build and customize personalized SMS and email marketing campaigns effortlessly to boost your revenue.
