Indian brands slash CAC by 30% using AI

Indian Brands Slash CAC by 30% using AI

In today’s highly competitive digital landscape, acquiring new customers at a cost-effective rate is a major challenge for many e-commerce brands. Customer Acquisition Cost (CAC) is a crucial metric that measures the cost of acquiring a new customer, and high CACs can be a major roadblock to growth. However, leading Indian D2C (Direct-to-Consumer) brands have discovered a game-changing solution to this problem – Artificial Intelligence (AI).

According to a recent report by Growth Jockey, top Indian brands have been able to slash their CAC by up to 30% by leveraging Intellsys predictive signals to identify high-intent users early in the funnel. By using AI to map micro-moments across the customer journey, these brands are able to make every ad dollar sharper, smarter, and more accountable.

The Problem with Blanket Campaigns

Traditionally, e-commerce brands have relied on blanket campaigns to reach a wide audience, hoping to capture the attention of potential customers. However, this approach is often inefficient and wasteful, resulting in high CACs and low conversion rates. With the rise of AI-powered marketing, brands are now able to target their ads to specific audience segments, increasing the likelihood of conversion.

The Power of Intellsys Predictive Signals

Intellsys predictive signals are a type of AI-powered technology that uses machine learning algorithms to analyze vast amounts of customer data, identifying patterns and behaviors that indicate high intent. By feeding this data into a predictive model, marketers can identify potential customers who are more likely to convert, and target them with personalized ads.

Real-World Examples of Indian Brands Cutting CAC

Several leading Indian D2C brands have already seen significant reductions in CAC by using Intellsys predictive signals. For example, a popular fashion brand used Intellsys to identify high-intent users who were actively searching for similar products online. By targeting these users with personalized ads, the brand was able to reduce its CAC by 25%.

Another example is a well-known healthcare brand, which used Intellsys to identify users who had been researching similar products online. By targeting these users with personalized ads, the brand was able to reduce its CAC by 30%.

How Indian Brands Are Using AI to Cut CAC

So, how are Indian brands using AI to cut CAC? Here are a few strategies that have been successful:

1. Identifying High-Intent Users: By using Intellsys predictive signals, brands are able to identify high-intent users early in the funnel, and target them with personalized ads.
2. Personalized Targeting: Brands are using AI to segment their audience and target them with personalized ads based on their interests, behaviors, and preferences.
3. Micro-Moment Marketing: Brands are using AI to map micro-moments across the customer journey, identifying moments of high intent and targeting users with personalized ads.
4. Automated Ad Optimization: Brands are using AI to automate ad optimization, adjusting bids and targeting parameters in real-time to maximize ROI.

The Benefits of Cutting CAC

Reducing CAC by 30% may seem like a minor achievement, but the benefits are significant. For example:

1. Increased Profitability: With a lower CAC, brands can increase their profitability by reducing their marketing spend.
2. Better ROI: By targeting high-intent users, brands can improve their ROI by increasing conversions and reducing waste.
3. Improved Customer Experience: By targeting users with personalized ads, brands can improve the customer experience by providing them with relevant and timely offers.

Conclusion

In conclusion, Indian brands are slashing their CAC by up to 30% by using Intellsys predictive signals to identify high-intent users early in the funnel. By using AI to map micro-moments across the customer journey, these brands are able to make every ad dollar sharper, smarter, and more accountable. As the digital landscape continues to evolve, we can expect to see even more innovative uses of AI in marketing, and a continued focus on cutting CAC to drive growth and profitability.

Source:

https://www.growthjockey.com/blogs/how-top-indian-brands-are-cutting-cac-by-30-with-intellsys