User Acquisition (UA) is the process of attracting new visitors or users to an ecommerce platform.
User Acquisition, commonly referred to as UA in the online space, is a critical part of digital marketing that embodies the strategies and approaches undertaken by an ecommerce entity to attract, onboard, and convert new users or visitors. The focus isn't solely on increasing traffic, but broadening the user base with individuals who are likely to engage meaningfully with the platform, and potentially become loyal customers.
The formula for calculating user acquisition is simple:
User Acquisition (UA) = Number of New Users / The total cost of the campaigns which attracted those users.
For instance, if an ecommerce entity spent $1,000 on a marketing campaign that attracted 100 new customers, their UA cost would be $10 ($1,000/100).
UA serves as the lifeblood of any ecommerce platform. Without a continual influx of new users, the business can stagnate, and profits may dwindle. It introduces the brand to more audiences, broadens market reach, enhances brand reputation, and drives in potential leads that could result in successful conversions, thereby leading to revenue growth.
Improving UA involves several strategies including: SEO optimization for better organic reach, social media marketing, influencer collaborations, referral and loyalty programs, personalized email marketing, and conducting A/B testing to understand what strategies work best.
Numerous factors can impact UA, including:
UA doesn't operate in isolation but has strong ties to other ecommerce metrics. For example, it influences the Cost per Acquisition (CPA), which is the total cost of acquiring a new customer, including the cost involved in nurturing that user to make a purchase. High UA can grow Customer Lifetime Value (CLV) by delivering a constant stream of new users who have the potential to become long-term consumers. Moreover, improving UA can result in better Return on Investment (ROI) from advertising spends.
User Retention Rate is a measure of how long customers remain actively engaged with an ecommerce business. It is an impo...
A Unique Value Proposition (UVP) is a clear statement, often not more than 100 characters, that conveys unique benefits ...
Units per Transaction (UPT) is an ecommerce metric that measures the average number of items purchased in a single trans...
Universal links connect users to both your website and iOS application from a single URL.
Unique Livestream Viewers are distinct individuals who watch an online live event on a specific platform.
Uninstalls refers to the number of times customers uninstall an ecommerce app from their devices.