Customer Acquisition Strategy for E-commerce
Customer acquisition is the process of attracting new customers to an e-commerce business. It is the growth engine — and the cost engine — of e-commerce. A profitable, scalable acquisition strategy requires understanding unit economics (CAC vs CLV), channel diversification, and the efficiency drivers for each channel.
Customer Acquisition Cost (CAC) and CLV
The fundamental acquisition equation: CAC must be substantially less than Customer Lifetime Value (CLV) to be economically viable. CAC = Total marketing spend ÷ new customers acquired in a period. CLV = Average order value × purchase frequency × gross margin × customer lifespan. Healthy ratio: CLV/CAC of 3:1 or higher for sustainable economics. Below 3:1 means the business may be growing but destroying value.
Acquisition Channels
- Paid search (Google Shopping, Google Ads): High intent; expensive and increasingly competitive. Essential but should not be the only channel.
- Paid social (Meta, TikTok): Broader reach, creative-led. Effective for discovery and demand generation. Post-iOS14 attribution challenges.
- Organic search (SEO): Highest long-term ROI; requires sustained investment. Lower marginal cost than paid once established.
- Email/CRM: Lowest CAC for repeat purchase; referral and win-back programmes acquire at low cost
- Influencer marketing: Effective for awareness and social proof, variable ROI