How Can SEO Help DTC Businesses Reduce Their Cost of Customer Acquisition?
Dec 29, 2021
10 min read
Selling D2C or DTC products or services on the foundation of SEO is far better than spending a fortune on ad campaigns. According to Statista, the average monthly spending of 46% of most visited eCommerce companies on advertisements is up to 1,000 U.S. dollars. The other 16% of companies spent between 20 and 150 thousand U.S. dollars per month from January 2019 to April 2020.
That shows businesses are spending huge bucks on gunshot ads for customer acquisition for a short period. Spending this much is not in the hands of small businesses, especially start-ups. So, why not tweak your SEO strategies to translate visitors into loyal customers.
SEO is the hero of digital marketing! If you get the hands-on search engine optimization, you'll better engage new customers and dominate over the SERPs (search engine result pages). If you're a newbie into this digital marketing ecosystem, you should learn the below SEO hacks to dig the gold mine while saving a lot of bucks that you might spend on ads. But before that, let's take a look at SEO to curate better device strategies to turn your website into a magnet.
What really is SEO?
SEO plays a significant role in the digital space, where you 24/7/365 compete to get that #1 ranking on SERPs. It's the hero that will help you dethrone your competitors and taste the gem of eCommerce supremacy.
As per Zerolimit, around 67.60% of clicks come from the first five organic results. That shows that having an online presence is not enough; you need to gamble with the marketing strategies to optimize your digital space.
In other words, you need to understand the customer's query and showcase yourself as the best solution to their problem to get the king's throne on SERPs. You can think of SEO as an acquisition channel to organically drive massive traffic that converts into your customers.
SEO is not about wildly stuffing keywords and creating lots of backlinks, but most of the so-called "Digital Marketing Agencies" think so. Instead, SEO is a ladder that will help you climb on SERPs only if you provide legit content to your customers.
But playing with SEO is not a game for everyone. Only experts can amplify your content and website to reach out to the big audience of Google without wasting too much money on ads. However, professionals always recommend understanding the working of SEO to kickstart your digital space or DTC SEO journey.
How do Google crawlers and algorithms work?
As per a study, about 90.33% of online content gets no Google traffic. Many factors play behind Google's algorithms to rank a website on SERPs. A website or blog with low-quality content or poor search engine optimization often fails to get placed on Google's website directory.
Some websites say that Google has more than 200 secret ranking factors that decide the ranking of websites. Falling to optimize your content and website according to the set criteria of Google's algorithm will not help you cater your services to a more significant business.
So, how to do SEO for your DTC business to reduce the customer acquisition cost (CACs)?
This question often arises in our mind; here is a complete guide to activating SEO strategy to get the eCommerce boom.
Become a legit source
A study reveals that 39% of visitors stop engaging with the websites if the content/layout is unattractive. That shows people like to spend more time on legit websites instead of random websites. Serving your customers with the best and proven solutions to their queries will help help you become an authority that will convert your prospect's customers into regular ones.
As you become a legit source, the new bloggers will take you as a source for their content, which means free and authority backlinks that will automatically improve your website image on Google's lens.
Care about your customers
Catering your services in the way you want will not help you. It would be best to think about what your customers want for massive customer acquisition. The more you care about your target audience, the more quickly you get closer to customer loyalty and top ranking on SERPs organically.
As we say, "customer is the king," so if you provide them with the best service, they will love to come back to you and also work as a free promotor for your DTC business. What can be better than this?
You can color the keywords often searched by users to showcase yourself as the "best solutions" for their frustrations. Use keyword research tools to know what's on your targeted customer's mind and fit those rich keywords in your content to keep yourself in the "good books of Google."
Conduct a competitive analysis
Google search console is not enough to get data insights other than your website's search data. For this, there are various tools available online. Once you get ideas of organic searches, you should check out what your competitor's searches look like.
Now, mold your website's content and product line-up to fit into the search engine optimization criteria. And get the advantage of ranking on the number one position organically.
Takeaway
SEO is the ultimate foundation of websites. If your foundation is correct, you can roll up massive revenue. But you can't do this job on your own. You need to join hands with the SEO experts to play with the search engines algorithms and rank in the #1 position. These professionals will butter up your website and make it ready to cater to your customers.
If you are also looking for a digital marketing agency for your DTC business, Saffron Edge is an ideal choice. We have a team of digital marketing experts who know the SEO hacks that will help you acquire a massive share of the eCommerce market without breaking your bank.
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11 Key growth metrics for SaaS businesses
Sustainable growth for SaaS companies depends on mastering the art of understanding the SaaS key metrics. Identifying and utilizing these indicators are most important for success. This blog will look at the most important SaaS performance metrics, including Customer Acquisition Cost (CAC), Activation Rate, Retention Rate, and Customer Lifetime Value (CLV). These metrics are interconnected with each other and are very useful when evaluating the health and progress of a SaaS business. How can you calculate each metric? What are their significance, and how do they influence one another? Recognizing the impact of these metrics is a basic but crucial step. In this discussion, we'll navigate the key metrics for SaaS companies that shape their growth trajectory. What are Saas metrics? SaaS or Software as a Service metrics refers to key performance indicators (KPIs) and measurements used to evaluate the performance, efficiency, and success of a SaaS (Software as a Service) business performance model. These key SaaS metrics help measure various aspects of a saas marketing in a startup, providing valuable insights into its growth, user satisfaction, and overall health. 11 SaaS Growth Metrics to Measure Your Success In the current state of the market, there are several metrics that analyze your SaaS business. Still, it’s essential to understand that not every metric is a good indicator of the growth of the SaaS. While it’s important to understand and utilize some of the best metrics to help you analyze and track your growth. Here are some of the most important key metrics you need for your SaaS growth: 1. Activation Rate The activation rate is a super significant number for businesses in a b2b saas marketing strategy– it helps us determine how many people use our product. It shows the percentage of users who start using the product as intended, not just signing up and forgetting about it. To calculate the activation rate, we look at how many people signed up and how many of them started using the product. The formula is: So, it's not just about getting people to sign up; it's about getting them to use and engage with the product. One way to increase the activation rate is by giving new users a personalized introduction to the product. This helps turn signups into active users who stick around. 2. Customer Acquisition Cost (CAC) When a business has to acquire Customer, the cost is Customer Acquisition Cost (CAC) is the expense of acquiring a single customer. It serves as a valuable metric for measuring the success of marketing strategies and determining the return on investment (ROI). To calculate CAC, you need to keep tabs on the number of new customers acquired over a specific period and ensure accurate sales and marketing expenditures tracking. Else we will lose the customers which we have gained. The formula is straightforward: For emerging businesses, CAC is an important factor in assessing the acquisition's value and making informed adjustments for the future. When considering the total amount spent on sales and marketing, various components need to be considered, including: PPC or Social Media Ads Salaries of team members Subscription costs for marketing tools Costs associated with content creation, such as blogs, design, and video Expenses related to agencies 3. Customer lifecycle value Customer Lifecycle Value (CLV) is like figuring out how much each customer is worth to your business over time. It lets you calculate the average amount a customer spends on your product during your relationship. To find CLV, you take how much money a customer gives you in a year, on average, and divide it by how long they usually stick around. The formula is: If you are just starting your business, CLV helps you with calculations and see if your plan will make money. It's a tool for established businesses to tweak their strategies, finding ways to get more from each customer while spending less to bring them in. 4. Average revenue per user The average revenue per user (ARPU) signifies the average revenue generated from each customer. This metric indicates a product's profitability and is calculated as: Calculating and understanding ARPU is fundamental for gaining insights into how well a product is performing in generating revenue from its user base. 5. Monthly recurring revenue Monthly Recurring Revenue (MRR) is like the money a SaaS business can rely on getting every month because they usually get paid through subscriptions. To find MRR, you just multiply the total number of paying customers by how much each customer brings in on average (ARPU). For businesses with subscriptions, keeping a close eye on the money coming in each month is super important. MRR helps them see how much income they can expect regularly. It is an easy way to track and compare revenues month after month and encourage subscription upgrades by highlighting advanced features, identify cross-selling opportunities for additional value, introduce customizable add-ons to meet specific user needs, implement referral programs for client advocacy and revenue growth, and prioritize customer success to enhance satisfaction, reduce churn, and expansion revenue 6. Annual recurring revenue Annual Recurring Revenue (ARR) builds upon the Monthly Recurring Revenue (MRR) concept and assesses year-over-year growth. While MRR is great for understanding monthly fluctuations, ARR provides a broader view, allowing you to evaluate your entire year. It can be calculated as: Comparing ARR from one year to the next gives you insights into your business's stability and overall performance. Since MRR can vary month by month, relying solely on it might not capture the whole picture. ARR offers a more comprehensive understanding of how your business is doing over the long term. It is a valuable tool for measuring performance. 7. Customer churn Churned customers can be calculated by the percentage of customers who discontinue their association with your company within a specified timeframe. While it's not the most enjoyable metric, businesses must address it especially using the saas marketing playbook. The churn rate can be calculated using the formula: The goal is to keep this rate as low as possible by consistently engaging users and delivering ongoing value. For instance, companies like Loom proactively manage churn by sending email tutorials showcasing new features to keep existing users involved and satisfied. 8. Revenue churn Revenue churn measures the reduction in revenue stemming from the loss of existing customers. It's calculated as: Many experts consider revenue churn a more updated metric than customer churn as it directly reflects the financial impact. To gain a comprehensive understanding of business churn, evaluating revenue churn and customer churn together is recommended. This dual analysis provides a broader view of how customer departures impact the customer base and the overall revenue. 9. Active trials Active trials are a valuable metric, especially for businesses employing a freemium business model. This metric is a solid indicator of the effectiveness of your marketing spend strategies, mainly when experimenting with different messages. The calculation for active trials is as follows: Active Trials = Sum of all active subscriptions during a period This increase in this number from one period to another suggests that your efforts yield positive results. Identifying what precisely contributes to this growth is crucial for ongoing business development. Not monitoring your active trials leaves you wondering about the success of your client acquisition venture. However, it's important to interpret active trials with caution. It's not just about creating accounts; you want to ensure that users actively engage with your product. Simply having an account doesn't necessarily equate to genuine product usage. 10. Customer Engagement Score A customer engagement score is a measure that shows how much a customer interacts with a business's product or events. The score depends on what actions count as engagement, which can vary. To figure out the score, you assign weights (how important an action is) to different engagement actions and multiply them by how often those actions happen: Customer Engagement Score = (w1*n1) + (w2 * n2) + … + (w# + n#) Here, 'w' is how much an action matters, and 'n' is how often it happens. For example, some businesses try to bring back users who could be more active by reaching out through emails. Pitch does this well with its email marketing strategy. A higher engagement score usually means customers are more involved and interested in what the business offers. 11. Trial conversion rate Converting free trials into paying subscriptions is a challenging task for SaaS marketing. To understand what is saas marketing, you need to monitor the conversion rate is a valuable strategy to stay proactive and work towards improvement. A target conversion rate of 25% is advisable for long-term success, and exceeding 30% is commendable; consider it a perfect job. Keeping a close eye on how many users transition from free trials to paid subscriptions provides insights that can guide efforts to enhance this crucial aspect of the business. Conclusion The list of SaaS growth metrics is vast and they align to the saas marketing funnel, but it’s wise to look for the best key metrics to lead your SaaS business to the top. The metrics we've discussed are like your guide, helping you track and take your business in the right direction. If you want more help figuring out which growth metrics are perfect for your business, connect with Saffron Edge. At Saffron Edge, a Saas website design agency, we can guide you in customizing a strategy that perfectly fits your needs and also on the development end, we can help you in providing the best website designs for your Saas business. Connect with us today; let us do the work! ...
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Proven Ways to Reduce Your Product Return Rate
Product returns are a bane for a company that can hinder its revenue and growth. Fortunately, some effective magical tactics can make a difference. Let's see how you can implement these hacks in your strategies. A higher-than-usual product return rate is something you may sometimes encounter if you've been operating an eCommerce business for some time. Returning products may be a major concern for business owners, leading them to raise prices to recoup some of their lost money. But obviously, that can't be maintained indefinitely as a strategy. Your company needs a better method for handling product returns and improving the customer experience. Make Sure Every Product Listed Has High-Quality Images and Descriptions Product Images Too many online postings just include one fuzzy photo of the goods. You can cut down on returns if you dedicate time to reviewing your present e-commerce listings and ensuring each item has a high-quality image, a thorough description, and, if applicable, a video. At the very least, you need four photographs of each product, one from each of the four cardinal directions. Description For the best possible pre-purchase experience, you should emphasize the product's dimensions, weight, and material in the description. Always use the most up-to-date product descriptions to avoid refunds due to customer misunderstanding or inadvertent overselling. Use the resources offered by various e-commerce sites as a starting point for crafting the ideal product description. Or, it's better to leave this job to us; we have a team of copywriters, A + content writers, and editors who excelled in churning out the best content for your products that can attract customers to your products. Product Videos Including a short video about your product in a listing doesn't need a huge time commitment or financial investment. To cut down your returns, you should create a short, straightforward video providing a 360° view of the product. An explainer video on the product's usage may improve the purchase experience for customers and make it easier for them to utilize the product once they have it, especially for more complicated items. Implement Size Guides and Fitting Tools Review your current size recommendations to ensure they are accurate and user-friendly across all platforms. In this way, you may prevent your return rate from going up as a result of clients buying the wrong size. From virtual room planners that display how furniture will fit into specified measurements and places to a simple slider on the product indicating how it fits on most customers (i.e., fits as expected or fits larger than expected), there is a wide variety of fitting aids available to consumers today. In this regard, a customer-voted "overall size" bar chart will benefit you. Along with a size guide, this provides the shopper with a great visual of how the item will fit. Adding a size guide or equivalent feature to your product listings will reduce the number of returns you receive due to people buying the wrong size. Encourage Patrons to Provide Feedback and Provide Incentives for Doing So You need to establish a fundamental procedure to increase the number of reviews for your business's products or services. Give discounts wherever you can. You might use a free incentive program to encourage consumers to leave positive reviews and show appreciation. It's probably no surprise that 95% of customers read online reviews before making a purchase; this means that positive evaluations have the potential to boost revenue and decrease returns on e-commerce sites. You may then change your advertising, listing, or email strategies in response to the concerns and challenges that have been brought to light. Lead the Way in Providing Exceptional Service to Customers Make it simple for buyers to get in touch if they have any questions or problems with your goods. Therefore, customers won't become irritated, which increases the likelihood that they won't return it. You should also include live chat and instant messaging features to the standard contact channels apart from phone and email. This creates a direct line of communication between you and the client, facilitating the speedy resolution of any issues that may arise. Make Sure Every Order Is Correct Inadvertently delivering the incorrect product to a consumer is a problem that all businesses eventually confront. Considering that incorrect items are cited by 23% of customers as the cause for their return, focusing on better order fulfillment is a smart place to begin when trying to minimize the number of items sent back to you. Relying on pen and paper to keep track of orders and deliveries can cost you. Thus, implementing a system to manage orders, pick, pack, dispatch, and delivery is straightforward. You Should Give Packing Top Priority Packaging issues will vary greatly from product to product. When deciding on packaging for an item, it is best to keep in mind the item's final destination. Don't skimp on the bubble wrap and extra-sturdy boxes when shipping fragile goods; packages may get jostled, dumped, or piled on top of one another. Never ship an unmarked or unidentified product to a customer; clearly label the contents and any special handling or storage requirements. If your customers still receive damaged products, you may assume that the problem is with the courier and not your packaging. This provides you with the opportunity to assess the efficiency of your couriers. For example, if you see a pattern of high returns from a single courier, you should look for a replacement. Manage Your Stock You must keep track of all returns processed for future analysis. Try keeping track of returns for a month in an Excel spreadsheet, making sure to mark the return reason if you haven't done so before. After the month, you can look at the numbers and decide where to make improvements. The necessary adjustments are dependent on the specifics of the situation. A few examples of such concepts are: While preventing consumers from changing their minds is impossible, if this is a common cause for returns, you may need to reevaluate your advertising and customer base. Loyal customers are less inclined to return their purchases. Examine your whole supply chain, especially the delivery unit, to ensure your customers receive the right products. Take Action Against Repeat Offenders Companies have gained notoriety for going after customers who return many things at once, taking advantage of more liberal return policies to effectively "rent" goods. People who are serial returners might cost businesses thousands of dollars since they use the product just once, like wearing a piece of clothing, before returning it. According to studies, 30% of consumers knowingly overbuy things so they may return them for a full refund, and 19% of consumers order many variations of the same item so they can make a decision after they have all of their options. Some of your customers may be "problem returners," which is something to keep in mind if the volume of returns is causing concern. The acquired data must be examined for distinct patterns in order to make this determination. If you suspect any serial returner, you should monitor their purchase patterns so you may warn them or perhaps temporarily disable their account. Become the Go-to Email Expert in Your Field Make use of MailChimp or a similar service to set in motion a predetermined series of automated emails to be sent to customers once they have placed an order. Provide detailed instructions on how and when customers may contact you to make changes to or cancel their order before the goods are sent. Links to your various communication channels, including live chat and instant messaging, should be prominently displayed so customers can easily modify their orders without having to call. Customers sometimes forget exactly what they purchased when they reach the payment page; these emails are a fantastic way to remind them and discourage returns due to incorrect color or style selections. Lengthen Your Returns Policy Policy return periods often last no more than 30 days. Double or quadruple this if you want fewer returns at your online shop. Increasing the number of days a customer has to return a product reduces the sense of urgency associated with returns. Most returns are motivated by this sense of urgency; therefore, reducing it increases the likelihood that consumers would keep the goods they were originally planning to return (or simply forget about them). This will cut down on the number of returns you get and, in some cases, may even improve your return reasons. Final Thoughts Some products will inevitably come back. However, by adhering to the procedures described in this article, you can reduce the number of returns you get. Expenses associated with returns have a significant impact on annual revenue for firms. These payoffs were often avoidable. Insights into where issues are occurring can be gleaned by investigating customer returns and their causes. Fixing such issues will make your clients happy. When customers don't have to send products back, you save money on shipping, repairs, and more. It improves interactions with customers and fosters confidence in your company. Know more about how to overcome your product return problem from our experts. We will advise you on the best possible routes. Contact us now! ...
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How Can SEO Help DTC Brands Prepare For The Future Of Retail
As the world is going digital each day, people are already in awe of all the benefits related to Digital marketing. Talking about the key features that make it worth it for the business owners, everyone would agree that Search engine optimization (SEO) has created a difference for them. After witnessing the wrath of the covid-19 wave, even those established business owners who were already making good profits with the traditional ways have shifted to the online landscape. That’s why they need more advanced SEO services has been on an all-time high. This demand is undoubtedly justified because SEO proves to be a massively beneficial tool for these DTC businesses. It improves the visibility of a website, but it also proves to be a cost-effective tool for business owners. Let’s discuss some key reasons that probably make SEO the most sought-after digital marketing tool of the new age. Source: Unsplash Organic search matters Gone were the days when paid marketing tools or fake ads would get customers to your doorstep. As technology evolves day by day, Google is also streamlining its efforts to provide maximum to its customers. And that’s why organic search is the new tool that can broadcast your brand in the best way possible. The ranking of a website improves if more and more users visit it. And just for the information, Google owns a large portion of the internet compared to its competitors. So if your website is organically welcoming more and more visitors, Google will try to improve the ranking. And that’s where SEO tools will help.Search engines contribute a pivotal amount in improving the ranking of any website, and that’s why SEO tools are a much-needed asset for any DTC business owner. Source: Unsplash SEO is excellent for your Brand’s reputation The key objective is to create a good, profitable website for a business's services or products. SEO plays an essential role in establishing it. An informative website that provides a clean and effective user experience to the customers is ideal for building credibility and trust. To achieve all of that, one has to create digital strategies that are spot on. But a lot more needs to be considered when it comes to improving the online reputation. Some key aspects like: Organic natural links User’s behavior on the website The signals provided by the machines Content of the page On-page optimization elements These factors also play a significant role in establishing a reputation, ensuring top results and profits. SEO helps the consumer Search engine optimization provides a blueprint to a business owner about the customers' critical requirements. The stats associated with SEO, be it an elaborated report or word form, signal users’ intent, and behavior. One can achieve it in a variety of ways like: Search query data Google analytics SERP stats Artificial intelligence insights All these collectively support a business owner in seeking a clear vision about what a customer needs. Keeping a check over these reports regularly and making viable changes in the strategy based on these reports can help a business owner in plenty of ways. User experience matters Have you ever walked into a store or shop that doesn’t seem to be welcoming from the outside? Well, we indeed doubt that. The reputation of a brand depends upon the way they market it. A well-lit shop with an attractive paint job will likely have more customers than a usual store. The same concept gets followed in the digital marketing landscape. User experience is an important aspect to be considered and needs the same amount of importance. To achieve the right amount of organic rankings and that boost in visibility, one should focus primarily on improving the user experience factor of their website. Google empowers the customers with some insanely helpful tools to find out about the customer’s experience. Local SEO is also helpful With the new boost in the digital marketing world, the contribution of Local SEO strategy cannot be ignored at any cost. Local SEO proves to play a pivotal role in the growth of small and medium-sized businesses. Source: Unsplash The key objective of Local SEO is to improve and optimize the local digital objects and properties of a website that helps a customer find out things easily. We are certainly familiar with the fact that people would always prefer a local brand rather than a global one. That’s why doing Local SEO and optimization that focuses on towns, spaces, regions, cities of a local area allows a brand to attract more and more customers from a local level. SEO strategy comes with backlinks and local citation strategies that help optimize the website's content. The key features that can help in elevating the local SEO part of a website are: Improving Google My Business listing. Preparing for an efficient Knowledge plan. Updating the social media profile A lot of customers out there also rely on Google reviews. So the best way to increase the brand's reputation and boost profits is through Local SEO. Sales can improve with the help of SEO Research also plays a key role when it comes to focusing on the right strategy to increase sales. As the whole industry is aware that market trends keep on changing with each passing day, a business owner should also emphasize improving the research part of the website as well. Taking the help of the right kind of SEO tactics, pitching the customers with good deals, unique products, and rapid deliveries are some of the key features that can attract many customers to your end. It improves the billing cycle for a business owner, which easily reflects on the profits. If a brand wants to achieve that ground-breaking success in a field, it should increase its visibility. SEO practices keep on evolving The fun fact about Search engine optimization is that it keeps on evolving. As technology is growing with each passing day, the strategy to improve the rankings of websites should also be improved. Internet is a vast pool of knowledge where everyone can access almost everything. So your competitors can also implement the same strategy that you’ve applied on your website and increase their rankings over Google. That’s why SEO tools need to be viably applied over the website and require constant monitoring by the authorities. These things associated with a website play a significant role in Google rankings. SEO improves your Internet understanding The new digital world of websites and emailers is simpler on the outside but supremely complex from the inside. Amidst this ever-changing and ever-evolving environment associated with the World Wide Web, a business owner should know the simple working of the internet.SEO tools come to the rescue to enable the customers with the same. Essential SEO tools, SEO tactics, and performance analytics are critical factors that help a website owner understand the fundamental principles of the internet. Knowing everything related to the internet, local SEO, business comparisons, etc., proves to be an asset for building the future of DTC brands. Using SEO is a cost-effective approach If you view SEO as a marketing cost or a marketing tool, you should think again. Search engine optimization provides that brand reputation to your website that it deserves, along with helping you reach those business milestones that used to be your dream. So rather than considering it as a marketing tool, you should take it as a business investment. Implementing the right strategy on your website would yield fruitful DTC benefits in the future. The investment that a business owner invests turns out to be negligible regarding the benefits that a business gets with it. SEO supports public relations Everyone associated with the digital marketing industry has witnessed the potential of public relations. A company should have a progressive strategy to improve the SEO and PR practices to increase the visibility of its brand. A user usually trusts that brand with the right kind of popularity on the internet. A celebrity face or celebrity-featuring ads can also help, but key SEO tactics prove to be a critical aspect of the brand’s awareness. SEO is a long-term thing If you’re a business owner and want to implement an SEO strategy in your business, you should be well-versed with one thing: Search engine optimization is a long-term strategy. Implementing the right kind of SEO strategy is a viable thing, but it takes a certain amount of time for the changes to be reflected. The website visibility over the internet improves with time and exemplary efforts. Positive Google reviews, constant orders, effective public strategy are some of the key features that can help in improving the awareness about the brand and its visibility over the internet. If a business owner wants to broadcast his DTC brand to the world in the best way possible out there, they need the right kind of SEO strategy. Saffron Edge is a renowned name in the SEO fraternity in exhibiting a brand’s positive image over the internet. So what are you waiting for? Click here to elevate your brand’s visibility today. ...
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