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Impactful ways to reduce your customer acquisition cost


ORAI's blog on Impactful ways to reduce your customer acquisition cost
Reduce your customer acquisition cost with Conversational AI

What is Customer acquisition cost?

Customer acquisition cost (also known as CAC) is the total cost of acquiring a customer to purchase your product or services. This includes everything, including the salaries of salespeople and marketers, as well as the cost of advertising campaigns over a certain period.

Customer acquisition costs can be a significant unit economic. They are often linked to customer lifetime value. Any company can use CAC to determine how much they spend on each customer acquisition.

How is customer acquisition cost calculated?

Calculate CAC using by dividing total costs to acquire customers (costs of sales and marketing) by the total customers acquired in each period.

Orai's blog image displaying the formula to calculate CAC
CAC Formula

Effective ways to reduce your customer acquisition cost by implementing conversational AI


  • Reach on customer preferred channels

You can engage with customers 24/7, at any stage in their buying journey. You have more control, more insight, and more agility with one AI platform. Your brand can use an Omnichannel approach to maintain a conversation on any channel without interruption. AI-powered chatbots can remember all customers, regardless of the platform they connect to businesses.


To know more: Omnichannel AI Chatbot: Why You Should Connect All Channels to a Single Bot


  • Live chat customer experience

Live chat is a fantastic way to impress customers with quick and helpful support. An AI WhatsApp chatbot can handle most of the customer support tasks. This allows your live support team to pay more attention and respond faster to unique or complex requests. AI-enabled live chat support can also boost your marketing and sales efforts through conversational engagement.

Empower your agents with an artificial intelligence chatbot and train them to improve customer satisfaction.

To know more: 5 Live Chat Support Tips for Higher Customer Satisfaction


  • Identify target audience

Marketing strategies and resources should be used for the right audience. You can find your target audience to help you craft a tone that resonates with customers. A target audience analysis is a way to guide your marketing efforts and ensure consistency in messaging. This allows you to build stronger relationships with your customers and provide them with exactly what they want.

Customers expect brands to offer them unique and personalized interactions in today's digital space. It can be difficult to provide customers with the information and content they desire or need.


  • Retargeting customers

Remarketing has proven remarkably successful in customer acquisition as well as upselling existing customers. Because it allows companies to create highly targeted campaigns for potential customers.

Retargeting can be a beneficial strategy. You need to gather as much information as you can about your customers to retarget them. It is important to understand your customers' preferences, behaviours, motivations, etc. This information will make it easier to target prospects and convince them that you are the right choice.

Chatbots can re-engage with thousands and send personalized messages to them, which can increase your chances of sales & customer conversions.


  • Increase average purchase value

An increase in your average order value can reduce customer acquisition costs and increase your ROI. Cross-selling and up-selling can help increase your average order value. Chatbots programmed with high-tech capabilities like NLP, NLU, AI, and machine learning will be able to use customer data to suggest cross-selling products and up-selling options. Customers can be enticed to try new high-value packages which will eventually lead to increased revenue. Customer behaviour can be analysed using the average order value (AOV). Understanding your AOV and the products that are most purchased can help you determine how to increase it for your customers.


  • Hyper-personalization

Hyper-personalization is the most advanced way brands can tailor their marketing to individual customers. This is achieved by using data, analytics, and AI to create custom and targeted experiences. Hyper-personalization leverages artificial intelligence (AI) and real-time data to deliver more relevant content, product, and service information to each user. This takes personalized marketing to the next level.

Reduce Customer Acquisition Cost with ORAI


CAC is useful for calculating marketing ROI. Automating customer engagements is easy. The key factor is to get users as efficiently and cost-effectively as possible. This means that you must achieve the lowest cost-per-acquisition (CAC).

ORAI can help you reduce your CAC with all the above-mentioned ways by shortening the sales cycles, delivering a better customer experience, improving conversion rates and automating end-to-end customer journeys.

Get a FREE DEMO of ORAI’s Conversational AI. Or click here for instant WhatsApp chat.


Swapnil Jain

CEO-ORAI Robotics

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