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5 Ways To  Reduce Customer Acquisition Cost For Your Wholesale Grocery Business

Getting new customers each day for your wholesale grocery business may be a challenge, but it’s worth the effort. 

However, it comes at a cost — your time, resources, and, above all, your dedication. 

Some of these costs are inevitable, but you can always focus on areas that may require fewer resources.

After all, customer acquisition is an ongoing journey. It requires adapting to changing preferences and fine-tuning your approach based on real-time insights.

Thus, for effective customer acquisition, you must look forward to reducing customer acquisition costs to make the most of your business.

So, how do you make it possible? Keep on reading to learn more.

What is Customer Acquisition Cost?

Customer acquisition cost simply means the total expenses that you incur to acquire a new customer. 

This is an important metric in retail and points out various opportunities for gaining new customers. It includes all the costs related to sales, marketing, and other activities that attract and convert potential buyers into paying customers.

Since customer acquisition is a continuous process, it demands consistent effort, innovative strategies, and a staunch commitment to delivering value.

How Do You Find Out Your CAC?

Now that you know what’s customer acquisition cost, here’s an easy and common formula to calculate it for your business:

CAC = Total Marketing and Sales Costs / Number of New Customers Acquired

This figure indicates if your marketing and sales efforts are working, i.e. if they’re bringing you any value. 

Lower customer acquisition costs mean higher profits. Thus, it’s important to ensure the money spent on getting new customers is less than the revenue generated by new customers.

Note: As a rule of thumb, spend just about 5% to 8% of your business budget on marketing.

Why Does Customer Acquisition Cost Matter?

CAC is more than just a metric; it can pinpoint specific areas of your business that will help you gain more customers. Here are some of the reasons why you must evaluate your customer acquisition cost.

1. Effectiveness of Marketing Channels

 CAC highlights the effectiveness of each marketing channel or campaign. Strategies that hit the mark, and the ones that could use a revamp — using customer acquisition costs, you can always know what’s working and improve what’s not.

2. Helping in Cost Reduction

Grasping your CAC is the first step in evaluating how to trim expenses and enhance your return on investment. It eventually helps in heightened efficiency and savings.

3. Navigating Sales Funnel Hurdles

A closer look at your CAC uncovers bottlenecks within your sales funnel. These are points where you might be shelling out more than necessary to introduce a customer to the next stage. By taking note of these hurdles, you can allocate resources precisely where they’re needed, optimising the entire journey.

Effective Strategies to Reduce CAC in Your Grocery Business

To reduce customer acquisition cost in your business, follow these steps.

1. Ace Your Targeted Marketing 

If you want to get more customers at less costs, focus entirely on customers who’re most likely to shop at your grocery store.

Thus, maximising your reach to your ideal customer base will help you eliminate extra costs. This is targeted marketing, which is like using a magnifying glass to find exactly what you’re looking for. 

For example, if you specialise in ready-to-eat snacks, direct your marketing efforts at individuals who love bingeing.

This might involve using social media ads or online search ads that pop up when someone searches for “best snacks” or “wholesale grocery online.

2. Improve Your Personalised Promotions

Imagine walking into a store and finding your favourite snack at a sweet discount. This is a tailored promotion. Tracking what customers buy and offering them deals on items they love. Not only does this save their time in finding what they like, but it also makes them feel valued.

If someone frequently buys a particular category or product, you could send them a coupon for their next purchase. This personal touch keeps customers coming back, reducing the need to spend as much on getting new ones.

3. Nurture Your Existing Customer Base

A simple logic behind customer retention is to keep customers satisfied so they don’t look at other options available. Happy and satisfied customers will always find themselves buying from you, thus becoming a constant source for revenue generation. 

This also adds to your integrity as a retailer. When you keep your existing customers delighted, you can then focus on acquiring new customers. Thus, customer retention is very much a prerequisite for customer acquisition. 

Consider loyalty programs or rewards for repeat purchases. Offering a discount to a past customer makes them more likely to choose your store over a competitor.

4. Boost Your Referral Programs

When we come across a great movie or a remarkable restaurant, we tend to rave about it. Referral programs work the same way.

Word of mouth has been an invaluable tool for marketing. Most importantly, it doesn’t involve a lot of costs like other methods do. While you focus on bettering your services, let your existing customers “spread the word” and bring in new buyers for you. 

While some customers may recommend you out of their high level of satisfaction, other customers may need a nudge. Encourage these buyers to refer their friends or family by offering them incentives.

For example, if a customer refers you to a friend, both of them could get a discount on their next shopping trip. A classic example of sharing is caring.

5. Utilise Analytics to Optimise Marketing Spend

Insights are the bread and butter of every wholesale grocery business. With efficient forecasting, you can predict demand for your products and scale your marketing efforts accordingly. 

Correct and relevant data also gives you a sneak peek at customer behaviour, so you can fine-tune your marketing strategies.

For instance, if an ad on social media is driving more foot traffic and purchases, you can increase its budget. This avoids spending money on approaches that aren’t delivering results.

6. Focus on Retargeting

Retargeting is like giving your potential customers a friendly reminder, ensuring your brand stays on their radar.

You know how sometimes you explore a website, almost make a purchase, but then change your mind? This applies to everyone. What if a subtle nudge could help them decide otherwise?

This is where retargeting comes into play. It’s like stirring up a conversation again, often showing your potential customers what they might have missed.

Those who visit your retail store website and spend time there already show interest in what you offer. With retargeting, you can make them reconsider and perhaps even seal the deal they were thinking about.

The best part about retargeting is that it’s super focused. It allows you to create tailor-made campaigns for those who’ve already shown an interest.

To get better at targeting, you need some information on your customers. These can be factors like what they like, how they do their grocery shopping NZ, and what motivates them.

With this knowledge, you’re all set to retarget like a pro and win them over.


Customer acquisition is an important factor for every wholesale grocery business, directly affecting growth in the long term.

However, the expenditures connected with attracting new consumers might, ironically, reduce your profits.

As a result, adopting techniques that minimise customer acquisition expenses while maintaining the quality of the customer experience are important. As renowned grocery wholesalers in NZ, we’ve got the largest range of best-selling products. Likewise, our prices are a great deal for quality, helping you raise your profits and customer acquisition. Explore our products and stock up the right way!

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