CXL - Combating rising CAC

TODAY'S HOST

Ognjen Boskovic, Growth Lead at CXL

Building a company is becoming cheaper.

Acquiring customers is becoming more expensive.

(you can build a nocode product for $0, while CAC has increased by 70% for SaaS companies in the last 6 years according to ProfitWell)

For the most of our history, the opposite was the case. Now, strategy needs to adjust to these new terms.

This is what product-led companies have done - turned their product into the most effective acquisition channel by incorporating growth loops, acquiring new users for close-to-zero dollars.

Do you have a high-level strategy to combat rising CAC?

Connect with Ognjen on LinkedIn.

YOUR WEEKLY DOSE OF MARKETING UPDATES

1. Get Featured in Growth Notes

Your last real competitive advantage is constant innovation through experimentation at speed.

Submit your experimentation case studies and we will share them with our audience...

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Case studies like the one you're about to submit help us educate more marketers on how to achieve speed through experimentation and win.

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Join us in building the greatest swipe file there is. We will feature the best ads across our different channels with credits to you:

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PS. You can also submit content pieces beyond ads, like landing pages, organic social content, etc.

Submit your ads here.

3. CXL Community

Too many brands try to win by casting a wide net. They try to create the perfect product that everyone wants, instead of pinpointing a unique customer base and speaking directly to them.

A solid messaging strategy ensures you grab your target audience's attention, and build interest in what you're selling.

It takes time, steady research, testing, and optimizing to craft the right messaging strategy. This playbook will help you exactly with that.

Get your playbook on how to build a messaging strategy.

4. The Serial Position Effect: Why Primacy and Order Matter in Psychology

You put tons of time into creating your product, experimenting with acquisition channels, and honing your messaging.

Yet here I am, about to tell you that consumers are often swayed by such subtle nudges as the order in which you present your products, or the “serial position effect.”

Read the full article.

5. CXL Talent Program

We help you hire experienced, CXL certified marketers outside US in less than 100 days. Salaries starting at $40k.

Learn more about CXL Talent Program here.

6. Testing Story 1

When we add a search bar in cart and focus on a gain or loss perspective… Will this lead to more add-to-cart and AOV?

1. Insight Stage:

Problem and insights: Users who search convert better, test risk aversion vs risk-seeking to motivate users to search, find the right time to push search to users.

2. Test Plan Stage:

Hypothesis: When we focus on loss aversion of forgetting an item in the cart and add a search bar, users are more likely to search which will result in more or similar transactions and a higher AOV.

3. Scorecard Stage:

Learning: Overall, adding a search bar in the cart led to more searches and add to carts. But less visitors finalized their purchase which led to a drop in transactions. The test performed the worst on mobile devices (significant drop in RPV and transactions).

Next steps: Don’t implement. The search bar was used but might have been distractive in the cart, plus it pushed the call-to-action to check out down.

Check out the whole story..