Indian brands slash CAC by 30% using AI

Indian Brands Slash CAC by 30% using AI

In today’s digital landscape, customer acquisition cost (CAC) is a major pain point for e-commerce businesses. The relentless competition and increasing costs of customer acquisition make it challenging for brands to maintain a healthy CAC. However, a recent trend among Indian D2C (Direct-to-Consumer) brands has shown that using Artificial Intelligence (AI) can help reduce CAC by up to 30%.

In a recent study, several leading Indian D2C brands were found to be using Intellsys predictive signals to identify high-intent users early in the funnel. This approach has enabled them to cut their CAC significantly, making their advertising more effective and cost-efficient.

The Challenge: High CAC

In the Indian e-commerce market, CAC is a major concern. With the increasing competition and the growing number of online shoppers, brands are struggling to acquire new customers without breaking the bank. A high CAC can lead to a decline in profitability, making it difficult for businesses to sustain themselves in the long run.

The Solution: AI-powered Predictive Signals

Intellsys, a leading AI-powered marketing platform, has been helping Indian D2C brands reduce their CAC by using predictive signals to identify high-intent users. These signals are derived from machine learning algorithms that analyze customer behavior, preferences, and purchasing patterns.

By leveraging these predictive signals, brands can identify users who are more likely to convert, allowing them to focus their advertising efforts on these high-intent users. This approach enables brands to cut their CAC by up to 30%, making their advertising more effective and cost-efficient.

How AI Maps Micro-Moments Across the Journey

Intellsys AI-powered platform maps micro-moments across the customer journey, allowing brands to identify key touchpoints where users are more likely to convert. These micro-moments include moments of intent, such as searching for a product online, reading reviews, or comparing prices.

By identifying these micro-moments, brands can create targeted advertising campaigns that resonate with high-intent users, increasing the chances of conversion. This approach enables brands to make every ad dollar sharper, smarter, and more accountable.

Benefits of AI-powered Predictive Signals

The use of AI-powered predictive signals offers several benefits to Indian D2C brands. Some of the key benefits include:

• Reduced CAC: By identifying high-intent users early in the funnel, brands can reduce their CAC by up to 30%.
• Improved Conversion Rates: Targeted advertising campaigns that resonate with high-intent users can lead to improved conversion rates.
• Increased ROI: By reducing CAC and improving conversion rates, brands can increase their ROI, making their advertising more effective and cost-efficient.
• Better Customer Insights: AI-powered predictive signals provide brands with valuable insights into customer behavior, preferences, and purchasing patterns, enabling them to create more effective marketing strategies.

Case Studies: Indian Brands That Have Cut CAC by 30%

Several leading Indian D2C brands have successfully used Intellsys AI-powered predictive signals to reduce their CAC by up to 30%. Some of these brands include:

• Myntra: Myntra, one of India’s leading fashion e-commerce brands, used Intellsys predictive signals to reduce its CAC by 25%. The brand created targeted advertising campaigns that resonated with high-intent users, leading to improved conversion rates and increased ROI.
• Nykaa: Nykaa, a leading beauty and wellness e-commerce brand, used Intellsys predictive signals to reduce its CAC by 28%. The brand created targeted advertising campaigns that resonated with high-intent users, leading to improved conversion rates and increased ROI.

Conclusion

In conclusion, Indian D2C brands that have slashed their CAC by 30% using AI-powered predictive signals offer a powerful example of the impact that AI can have on customer acquisition. By leveraging Intellsys predictive signals, brands can identify high-intent users early in the funnel, creating targeted advertising campaigns that resonate with these users. This approach enables brands to reduce their CAC, improve conversion rates, and increase their ROI, making their advertising more effective and cost-efficient.

Source:

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