What is cost per acquisition?
Cost Per Acquisition (CPA) is an essential metric that helps businesses measure how well their marketing campaigns perform compared to their competition. Essentially, CPA reflects how much a company had to pay in advertising, in order to convert a person into becoming their customer.
Campaigns that are well executed and designed will typically have a lower cost per acquisition, given that customers are interested in the product, and there is little friction in the conversion process. In this article, we’re going to compare what the CPC and CPA benchmarks are for the retail industry when performed via social advertising and Raange’s Text2Register technology can exceed that manifold.
What are the cost per acquisition avgs for Retail?
Acquisio has recently published an in-depth study on the benchmarks specific to particular industries that have been calculated by analyzing over 50.000 campaigns from 11.000 different advertisers from Canada, Australia, and the US.
The study has found that the standard CTR in the retail industry is 3.49% if done without machine learning optimization (ML) and 4.36% if done with ML.
The cost per acquisition in the retail industry was reasonably high, averaging at $41.47 without and $37.98 with ML.
Big social platform advertising costs
At Raange, we strongly believe in the power of first-party data, which can provide great benefits to businesses that are looking to expand their reach to a more significant number of customers. Our Text2Register technology allows businesses to convert new customers at a considerably lower cost than traditional social media platforms.
Here are the average advertising costs on various social media platforms:
- Facebook — $0.98/click
- Instagram — $3.55/click
- YouTube — $3.20/click
- LinkedIn — $5.25/click
- Twitter — $0.39/click
- Pinterest — $1.51/click
And this is what Raange has to offer
Customers that run campaigns via our Text2Register technology pay an average cost per click of $0.20, which is nearly 2X more affordable than the cheapest social media option.
Furthermore, the average CTR on Text2Register campaigns is 85%, which is 18 times more efficient than Machine Learning-enhanced campaigns we touched on above, subscriber conversion rates average at 90%.
When our Text2Register technology is paired with an incentive to purchase like a coupon, 80% of consumers that converted as a subscriber make a purchase within a 24 hour period.
Your cost per acquisition can be below $1.00 using our Text2Register technology – making it both considerably more efficient and cost-effective.
Another massive benefit of using our service is that you’ll have access to first-party data, which you can then use for your future marketing efforts. We’ve written a lot about the benefits of first-party data, and we firmly believe that businesses will significantly benefit from owning their own customer data.