If there is one abbreviation in digital and social media marketing that provides a true, no nonsense, cut to the chase understanding of your business, it is the Cost Per Acquisition (CPA)
CPA is the cost of acquiring a customer/lead or prospect. While CPAs are essential in any business, The accountability and precision of the CPAs in the digital marketing environment enables you the business owner to get a precise dollar cost figure to acquire a customer.
If your product or service is in a competitive space. Allocating CPAs into feasibility studies, business plans and marketing budgets will thicken your profit margin, provide a more accurate sales forecasts and reduce wasted dollars.
for businesses that are new to social media marketing it is good to establish a BCPA(Baseline Cost Per Acquisition) first before arriving at a TCPA (true cost per acquisition)
Once you have a BCPA you should have open conversations with your customer, sales team, business development and marketing agencies to gain insights to answer the following
What was the expectancy of the user pre and post clicking the ad?
What was the user uptime on the website before purchase? (How long was the user on the website)
What was the user flow on the website? (What pages did the user navigate to and from)?
Which pages or elements did users spend more/less time on?
What was the drop out/bounce rate on the website?
The insights that the data provide will help optimize targeted ads as well as website design and copy. Reducing Cost per clicks and increasing your Click Through Rates. This optimization will increase your conversation rates, reduce drop outs and lower the BCPA to provide a more accurate TCPA
USER STAGES (Funneling)
A typical user will navigate through the following stages
(Will provide more detailed insight on this in a future blog)
COMPONENTS REQUIRED FOR REDUCING CPA
Paid ads alone are not sufficient enough in converting users into sales at a low CPA. You will need to gain a thorough understanding of the following to provide a comprehensive user experience online.
A Good understanding of user insights on social media
A Good understanding of the platform and its usage
A Great website UX (User Experience)
Strong Social Media Presence
Good Ad design and production
Good Value proposition in ad (Strong Sentiment/USP)
Accurate Ad targeting on platforms
For the sake of brevity we shall look at three categories mentioned above
UX on Website- The user experience on a website must be congruent with the consumer expectancy of the sentiment provided in the ads. If the sentiment or claims made in the ads do not match the elements on landing pages of the website the user may become apprehensive, hesitant and disinterested.
Insights to understand UX of your website
Drop Outs/Bounce Rates on landing pages.
If there is a 50% or more Drop/Bounce on your landing page/homepage, you should seek to optimize the landing pages and increase the UX on website. One way to accomplish that is to plug a heat map and monitor user activity
The heatmap shows the areas of the website users focus their concentration on . While there are many heatmap providers and plugs I recommend www.crazyegg.com for the comprehensiveness and ease of use
Strong Social Media Presence (Social Proof)
Users depend heavily on social proofing to influence their decision making process. According to Oberlog.com
Having a strong social media presence is no longer an addition to the marketing efforts, it is a necessity.
UNDERSTANDING ADS AND PLATFORMS
“The quality of a lead depends on the value of the sentiment offered to the market”
The higher the sentiment the higher quality of the lead and vice versa.
Platforms like google, facebook, instagram twitter and LinkedIn etc offer businesses data insights and analytics to help you engage with your customers better and Reach more potential customers.
CHALLENGES IN REGULATED INDUSTRIES
Here is a list of categories you should avoid targeting. As they may result in lowered organic impressions of your posts and eventually be de-platformed
Alleged or Actual Commission of A Crime
Health (Includes healthcare related services, labs, clinics, and pharmaceuticals)
Genetic and/or biometric data
Negative financial status or condition
Political affiliation or beliefs
Racial or Ethnic origin
Religious or philosophical affiliations
Trade union membership
*the policy does vary from country to country for example advertisers targeting the US may target based on trade union membership and political affiliation or belief
Industries like healthcare require a deeper understanding of your customer due to tight regulations on advertising, HIPAA compliance and the frequent data breaches and privacy violations that follow suit.
For instance “Healthcare” is not a targeted-able keyword. Platforms like Google, Facebook, Instagram and Twitter have disabled this keyword from being purchased or targeted due to its influence on medical professionals. This keyword is only available through organic content (content that is user generated)
Attempting to target sectors like healthcare will result in low impressions on posts, page bans and blacklistings on search engines.
Although, having a deeper understanding of your target audience and platforms will enable you to push through these barriers with compliant ads and creatives.
VIOLATIONS OF DATA PRIVACY
As data breaches and privacy violations rise, Individual privacy remains at the forefront of concern in cyber-crime. (Stay tuned for a detailed blog on Data and Privacy Violations)
Authorities, Search Engines and Social Media Platforms collectively strive to identify and penalize those who violate individual privacy with very clear laws and acts. Sadly, there are tons of companies that still offer email, contact number lists for as low as $100 and companies are ready to buy.
CAN SPAM VIOLATION ACT 2003
An Email list purchased or sold with the intention of sending unsolicited emails is a criminal offense. If reported this could lead you to pay upwards of a $42,000 fine and a blacklisting of your website.
Knowing the general rules will help you establish a clear framework to approach the digital and social media ad space. Couple that with strong consumer & platform insights, sticky creatives & sentiments and you can be sure to see the demand of your product or service rise at the lowest possible Cost Per Acquisition.