The cost of customer acquisition: how user-generated content changes the game.

In today's crowded digital environment, acquiring new customers is essential for a business. However, few businesses realise how costly this can be and how important it is to retain existing customers. Often, the focus is only on acquiring new customers, but the numbers are clear - retaining an existing customer is more efficient and cost-effective.

According to a study by Fred Reichheld, author of "The Loyalty Effect," a 5% increase in customer retention can increase a company's profits by 25% to 95%. The likelihood of selling a product to a new customer is only 5-20%, while for an existing customer the likelihood is as high as 60-70%. So in practice, the cost of acquiring a new customer is up to 5-7 times higher than the cost of retaining an existing customer. These figures suggest that retaining existing customers yields significantly better results and economic efficiency.

So how can a company achieve lower customer acquisition costs and increase profitability? This is where working with User-Generated Content (UGC) comes into play. Customer reviews, experiences and recommendations created by customers themselves are a powerful tool for building loyalty. UGC not only increases the credibility of your products and services, but also motivates customers to stay loyal.

The importance of UGC in CAC reduction:

1. Trust and customer reviews. Product reviews from real people increase the credibility of your products and services. This kind of content is authentic and customers consider it a reliable source of information, which significantly increases conversion rates.

2. Social proof: Positive customer reviews and experiences, shared in the form of UGC, can serve as a strong evidence base for your business. Potential customers are more willing to trust your products and brand when they see that other people are happy.

3. Social sharing. When customers share their positive experiences, your brand gets in front of new potential customers.

4. Increased organic traffic. Authentic content added to your brand is preferred by search engines, resulting in more site visits and more customers.

The Rewora platform leverages the power of UGC and artificial intelligence to manage reviews and discussions in the waiting room. This means your customers are creating content that other potential customers are interested in. This creates a trusted foundation for building lasting relationships. At the same time, keeping existing customers on the Rewora platform means that the cost of acquiring new ones is reduced, thereby increasing efficiency and profitability.

The result is not only a reduction in the cost of acquiring new customers, but also the building of a strong customer community and increased customer loyalty. Rewora makes content marketing an effective tool for increasing sales and improving the overall online shopping experience.

Investing in working with user-generated content on the Rewora platform becomes a strategy that increases your marketing cost efficiency, reduces CAC, and delivers long-term results.