Rising Customer Acquisition Costs and the Impact on Social Media Strategies
In an era where customer acquisition costs are skyrocketing, brands are grappling with the challenges of standing out in an oversaturated market. According to the State of Fashion 2023 Report by BoF and McKinsey & Co., the average amount spent to acquire each customer has more than tripled over the past decade, with advertisers shelling out about $29 per customer in 2022, compared to just $9 in 2013. To shed light on the complex landscape of social media success for fashion and beauty brands, Dash Hudson’s Chief Marketing Officer, Kate Kenner Archibald, recently shared valuable insights during a BoF Live discussion. Let’s explore some key takeaways.
- Understand how and where user behavior is changing: With video consumption on the rise, platforms like TikTok and YouTube have become major players in consumer attention. On average, individuals spend around 46 minutes per day on TikTok, 46 minutes on YouTube, and about 60 minutes combined on Facebook and Instagram (now referred to as Meta). Brands need to adapt their strategies to capture the demand for short-form video content on these platforms to remain relevant.
Fact: Dash Hudson data reveals that brands finding success on TikTok and Instagram Reels are posting short-form videos at a recommended cadence of four times per week on TikTok and three times per week on Instagram.
- Focus on creating regular content versus building brand desirability: The algorithmic nature of TikTok has shifted the focus from brand desirability to content relevance. Unlike traditional platforms, TikTok prioritizes serving content based on user preferences, making it essential for brands to ensure they have the right content on the right channels.
Fact: Dash Hudson’s analysis shows that brands with higher engagement rates post short-form videos more frequently, emphasizing the importance of consistent content creation.
- Boost omnichannel sales by increasing the entertainment value of content: Brands are discovering the power of entertainment-based content on platforms like TikTok. Dash Hudson partnered with NielsenIQ and found a significant correlation between entertainment-focused content and omni-channel sales growth. Brands leveraging entertainment as a content strategy grow 34 percent faster than those using traditional marketing approaches.
Fact: Dash Hudson’s study also revealed that brands with a higher entertainment score on Instagram experienced a 500 percent increase in Link-In-Bio clicks.
- Align the data you track to the questions you want answered: Metrics should be aligned with the goals and questions a brand wants to address. The focus has shifted from surface-level metrics like views and likes to more meaningful indicators of engagement, such as the number of questions asked, engagement percentages, and time spent on content.
Fact: In-depth data analysis is crucial for understanding performance and adapting content strategies to each platform’s nuances.
- Optimize audience reach with authentic content and collaborations: A successful social media strategy encompasses brand content, user-generated content (UGC), and influencer collaborations. Authenticity is key, as UGC reflects the brand’s responsiveness to its audience’s needs. Enabling creators and influencers with creative control fosters collaboration and engagement.
Fact: Brands should prioritize UGC to demonstrate active listening and engagement with their audience.
- Mix content and platform use for a holistic marketing strategy: Different platforms cater to diverse audiences and offer distinct engagement opportunities. Combining platforms like TikTok for engagement and Instagram for broader reach can create a holistic marketing strategy that reaches various consumer segments.
Fact: TikTok is still an early adopter channel, with brands experiencing a monthly follower growth rate of 12 percent on average, compared to 2 percent for YouTube and Instagram.
