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How rising CAC impact e-commerce marketing strategy

The growing popularity of online shopping has intensified competition between e-commerce players, leading to increased customer acquisition costs (CAC). According to a recent survey, a majority of retailers say that the rising costs of attracting customers are a threat to their sales goals. Additional expenses compel brands to optimize their marketing strategy and find new ways to stay competitive. Let’s explore how skyrocketing customer acquisition costs impact retailers’ marketing strategy and what technologies they can use to help them deal with the problem.

Why customer acquisition costs are rapidly rising

Over the past few years, customer acquisition costs have drastically increased, which affected e-commerce profitability for brands and retailers. New research by SimplicityDX revealed that today merchants lose $29 for every new customer acquired, while in 2013 they lost on average $9, indicating a 222% CAC rise in the last eight years. Among the major factors driving rising CAC is the ability of consumers to reduce ad tracking on mobile devices. On top of that, in 2023, Google will no longer support third-party cookies on its Chrome browser. As Chrome accounts for 65% of browser use globally, the move signals a new era in digital marketing.

How rising CAC influences digital marketing strategy

In times of rising customer acquisition costs, e-commerce players have to rethink their marketing strategies and focus more on customer retention. According to Bluecore’s 2022 Retail E-Commerce Benchmark Report, existing retail customers are much more likely to convert than non-buyers, and the likelihood that they will keep coming back for more purchases grows with every successive purchase made. However, maintaining existing buyers is impossible without customer experience improvement.

One of the most effective ways to enhance user experience is to implement immersive technologies like 3D product images, Augmented Reality and virtual try-on into online shopping journeys. Unlike video and photo, such content is fully interactive. It increases customer engagement and conversion rate, provides more information about the product and bridges the gap between online and offline shopping. Retailers that incorporate immersive content in their online catalogs include Gap, Timberland, H&M, Inditex, Lacoste, Sephora, Warby Parker, IKEA, and more.

How immersive content elevates online shopping experience

Firstly, immersive content has the power to improve consumers’ perception of the product. 59% of customers consider visual information to be the deciding factor in making a purchase. In terms of importance for the buyer, it ranks even higher than both product description and price. Yet, flat photos and videos, no matter how good, don’t allow consumers to explore items from all necessary angles and estimate their quality and materials in tiny detail. That’s why shoppers often doubt if the desired product is worth buying. To blur the line between offline and online shopping, retailers provide their customers with interactive 3D product images.

A great example of how a brand can use 3D product images to improve the perception of their items is Claris Virot’s online store. Claris Virot focuses on designing bags, purses, belts and footwear, most of which are made of python, lizard, and croco leather. It’s essential that the brand gives online shoppers the chance to study their unique products in every detail. The brand used the Cappasity solution to digitize items in an interactive 3D View format and embedded 3D Views into its online store.

commented Jean-Christophe Ankaoua, President of Lion-Snakes (Marque Claris Virot).

Thanks to Cappasity 3D Views, Claris Virot’s customers can rotate the items and zoom in to examine fabrics, textures, colors, zips, pockets, and straps. This enables them to explore a product as they would in real life, truly seeing the quality and details so they can purchase with confidence. The key metrics obtained after performing the Cappasity customer development prove the point: the perception of the product improves by 23% and customers become 29% more deliberate about making a purchase.

Secondly, immersive content makes online shopping more engaging for consumers, resulting in longer time on product page and higher conversion rates. For example, after embedding Cappasity 3D Views into its online store, a direct-to-consumer footwear brand SHOES 53045 noticed higher customer engagement and an increase in average time on a product page. Aurelia Ammour, Co-Founder and CEO of SHOES 53045, mentioned,

The time spent by a customer in a shopping environment has a direct impact on purchases. According to Google Benchmarking, in 2019, the average time on a product page for e-commerce websites was 38 seconds. Yet, according to research, purchase probability is at its highest when a person spends around 50 seconds on a product page. Cappasity’s research revealed that 3D Views increase the time a consumer spends on a product page by 15–40 seconds thanks to additional interaction time with 3D content. As a result, time on a product page increases by at least 40% and reaches the desired 50–60 sec, leading to the highest possible purchase probability.

To implement immersive technology into your online store, feel free to contact our team at

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