Fighting against increased Customer Acquisition Costs

In the relentless arena of digital marketing, combating the continuous surge in Customer Acquisition Costs (CACs) has become a paramount challenge for businesses. In this blog, we'll touch on the factors driving the escalation of CACs, the resultant pressure on marketing teams, and how Pockla emerges as a dual-force solution, designed for both acquisition and retention.

Content Saturation and Brand Optionality

Research from SimplicityDX shows that customer acquisition costs have increased by 222% over the last eight years. Prior to Covid-19, the majority of brands and retailers were advertising across a wide range of channels, both on and offline. However, when the pandemic hit, those businesses were restricted to online channels, which prompted many brands and retailers to reinvest all other marketing budgets into online advertising.

A by-product, in part, of this shift, is the issue of content saturation. Compounded by the sheer number of options available to consumers when making a purchase decision, the on-going increase in customer acquisition costs (CACs) looks set to continue. Quite simply, consumers are overloaded with both information and choices, which makes attracting their attention more expensive than ever for brands. 

This heightened competition not only strains marketing budgets at an acquisition level, but also elevates the importance of customer retention for brands to ensure customer lifetime values (LTVs) are sufficiently outweighing CACs. 

Growing Pressure on Marketing Teams

This relentless increase in CACs is putting immense pressure on marketing teams to optimise and innovate. Whilst traditional channels are increasingly being left behind in the face of increased competition and escalating advertising costs, the success of ‘content first’ marketing strategies - think Glossier or Charlotte Tilbury - is plain for all to see. Yet, ideating and creating high quality content on a continuous basis to execute a content first strategy is complex and expensive. Marketing teams must find ways to distribute an increased volume of higher quality content in order to balance sustainable acquisition costs with customer retention.

Pockla's AI tool for Acquisition and Retention 

Pockla’s AI solution is designed to address the twin challenges of customer acquisition and retention. A deep understanding of audience psychographics allows Pockla AI engine to answer the question “What is interesting to my audience right now?” for any consumer facing brand and deliver content ideas from the answers straight to the fingertips of marketers. 

Empowering Marketing Teams

In the face of rising CACs, Pockla empowers marketing teams with an AI tool that is fully integrated into the daily processes of a content team. Users can specify what, when and how often they would like to receive content ideas, and provide feedback to continuously improve their outputs. 

The on-going shift in the marketing world will create a new set of winners and losers, favoring businesses which find innovative, sustainable solutions for combating the escalation of customer acquisition costs. Pockla delivers AI-driven content ideation solutions that redefine customer engagement in the digital age. 

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