Customer acquisition is a critical driver of growth. But attracting and converting new customers requires a strategic, data-driven approach. Leveraging insights from data can help ensure you are reaching the right audience with the right message, rather than catching a wide net hoping to catch anyone.

Interested in using data to uncover and target high-value audiences? Let’s dive in.

The Importance of Data in Customer Acquisition

Smart use of data helps brands acquire customers more effectively and profitably. You can use data to:

• Identify audiences most likely to convert
• Find and fix issues in the shopping funnel
• Tweak messaging to win over first-time buyers
• Identify ROI-positive marketing channels
• Spot customer preferences and trends
• And more

However, to do all of this you need to be able to access your data and run the right kind of analysis. If your data is siloed and you don’t know which KPIs to focus on, you will be forced to keep guessing.

Data Sources for Customer Acquisition

To analyze and optimize your customer acquisition efforts, you’ll need to tap into all relevant data sources. Depending on your brand, this typically includes:

• Your website (eCommerce)
• Amazon
• In-store
• Retail partners
• Campaign data, like Meta and Google Ads

Bringing this data together is essential for you to see the full picture.

Struggling to consolidate your data? Daasity pulls your multichannel data into a single source of truth, making it easy to run advanced analyses and uncover insights.

KPIs for Customer Acquisition

These are the key metrics you’ll want to pay attention to when it comes to measuring and improving your customer acquisition efforts:

Conversion Rate

The conversion rate is the percentage of visitors to your website or landing page that complete a desired action (like making a purchase), out of the total number of visitors.

Why it's important: It measures how effective you are at turning visitors into actual customers.

Customer Acquisition Cost (CAC)

CAC is the total cost of acquiring a new customer. You calculate it by dividing acquisition expenses by the number of customers acquired in the period the money was spent.

Why it's important: It helps you assess the profitability of your marketing strategies and whether they are sustainable long-term.

Lifetime Value (LTV)

LTV is gross margin (net sales minus your SKU costs) per customer over their lifetime with your brand.

Why it's important: It helps you understand how valuable a customer is over an extended period, not just on the first purchase.

LTV:CAC Ratio

LTV:CAC ratio is the ratio of your brand's Customer Lifetime Value and your Customer Acquisition Cost.

Why it's important: It compares the relationship between the value a customer brings and what it costs to acquire them.

These KPIs can help you assess and fine-tune your strategies to ensure your campaigns are profitable and effective.

Ways to Improve Customer Acquisition Using Data

Data-driven strategies can significantly enhance your customer acquisition efforts. Here are several effective ways to leverage data to improve your acquisition strategies:

• A/B Testing
  Compare two versions of a webpage, email, or other marketing asset to determine which one performs better in terms of converting visitors into customers.

• Product Analysis
  Which products do customers tend to buy first? Which products do they buy together, and what are they likely to buy next? Analyze buying patterns to figure out which products to feature most prominently in your acquisition campaigns, and how to encourage customers to purchase multiple products.

• Identify Profitable Customer Segments and Channels
  You might think, say, young urban moms or eco-friendly Gen Zers are a high-performing target audience for your brand. After all, if the conversion rate is high then that’s good, right? Well, maybe. Consider LTV:CAC ratio to figure out which customers bring long-term value, and focus your campaigns around those.

• Optimize Your Channel Mix
  Similarly, you might think that a particular channel, like Instagram or Google Ads, works well for your brand. But do customers stick around long-term? Identify your most sticky channels and allocate more budget to them.

Customer Experience

Data on customer feedback and support interactions can highlight areas of friction. A smooth shopping experience is essential for turning first-time buyers into loyal customers.

Example of Successful Data-Driven Customer Acquisition

Nour Hammour teamed up with Daasity to build a single source of truth around their data, track and analyze cohorts, and spot weaknesses in their funnel. This gave the brand access to key metrics like LTV, LTR, lifetime gross sales, AOV, and retention rate by months since first purchase.

By leveraging custom cohort analysis and Daasity’s product affinity analysis, the brand knew what customers are likely to buy next, and could target them more effectively.

The brand also used Daasity’s site funnel analysis to spot a pain point in their shopping funnel and improve their conversion rate. Read the full story here.

Take charge of your data and supercharge your customer acquisition

Daasity is the only data and analytics platform purpose-built for consumer brands. Want to learn more about how we can help you drive growth? Get in touch today to request a personalized demo or start a free 14 day free trial with your Shopify store.