Rising customer acquisition cost: How a Discord community is key to retention
There's a big change around customer acquisition. Bringing in new customers has always been a critical part of any business, but in an increasingly fragmented digital landscape it has become increasingly difficult and expensive.
While major platforms are tightening data privacy and cookies are on their way out, the sheer volume of new games, apps and products vying for consumers' attention is staggering. 16,000 games launch on Steam and 150,000 apps are added to iOS platforms each year, not to mention countless new things to look at every second on TikTok and Instagram. It's no secret brands face enormous competition to even get noticed, let alone keep customers on board.
That means, in every industry and vertical, customer attention and loyalty are like gold dust.
So when you acquire a customer, holding onto them becomes paramount.
Establishing a genuine connection with a fan and customer is crucial to foster loyalty and drive retention. One of the most effective ways to truly connect with people? Community.
The major challenges of customer acquisition
1. Privacy changes and the phase-out of cookies
At the same time as this explosion of products and distractions, major players like Apple are stepping on the hose of new customers while Facebook advertising costs are skyrocketing. Even with Google adjusting its phase-out of third-party cookies, the removal of tracking tools and tightening rules around data collection have made it increasingly difficult to identify and target potential customers with precision.
It's great that major players like Apple are pushing to protect user privacy, but marketers will miss the ability to gather data about users’ online behaviour, understand customer preferences and create highly targeted ads. In a 'low-cookie world', companies are left in the dark about who they're targeting.
When you can’t optimise your campaigns based on precise data, you end up wasting ad spend and seeing diminishing returns along with increased customer acquisition cost (CAC).
Left with more anonymous and generalised advertising, you may still reach people - but it's much harder to determine whether they are the right people. All-important superfans are out there with a passion for your brand and money to spend, but first you have to find them.
2. Market Saturation
With tens of thousands of new products being launched every year across major platforms, it’s getting harder to stand out from the noise. Consumers are constantly bombarded with ads, messages, and promotions, leading to ad fatigue and making it more difficult to capture their attention.
This oversaturation means that companies are competing fiercely not only for visibility but also for consumer interest and engagement. As more brands spend on ads, the cost of advertising rises, pushing up the overall CAC.
Why Discord is key to retention
Given these two major challenges, it's clear that retention is just as important as acquisition - if not more so. If you’ve spent an exorbitant amount to acquire a customer, losing them is a huge financial hit. You need to focus on strategies that ensure those customers stay engaged over time.
This is where online communities on platforms like Discord become a powerful asset. An engaged community helps customers feel connected to your brand, even between purchases, increasing their loyalty and making them more likely to stay with you for the long term.
Online communities in acquisition and retention
When you start a Discord server, you create a home for your fans who want to engage with your brand. Crucially, it isn't about constantly selling to your audience. It's about joining a conversation with them, from which tangible results will flow. Examples from the music and gaming industries show that a thriving community becomes a self-sustaining flywheel of marketing and monetisation ROI.
Here's some of the key benefits of a Discord community when it comes to customer retention:
You know who you're talking to
Unlike anonymous advertising, online communities give brands direct access to their customers. Just by signing up, a fan signals interest and intention to engage and purchase. You also capture their email addresses and other data, which means - unlike social media - you can keep in contact with them even if they drift away from the platform.
In-depth insights
When integrated with data analytics tools like Levellr's dashboard for Discord, online communities can provide brands with a treasure trove of key metrics and insights into customer behaviour. This data both proves ROI and empowers you to focus on the actions that drive the most value.
Engagement equals ROI
Communities help foster a sense of belonging and loyalty, which is crucial for retention. Even when they're not at the point of spending money, customers who feel part of a passionate and growing community stick around and become authentic advocates for your brand. The beauty of it is that members play an active role, talking amongst themselves, forging friendships and collaborations that keep everyone coming back.
Then, when they're ready to spend, or you have a new product to sell, they're already there.
Build your community
When you create a happy and healthy community around your brand, you can hold onto those customers you’ve worked so hard to acquire. Whatever your industry or vertical, Levellr's community management experts can guide you in proven engagement methods and smart retention strategies. By consistently engaging with your community and providing ongoing value, you can keep your customers invested in a lasting relationship with your brand.
Here at Levellr, we help clients like Fall Out Boy and Starbucks understand and engage with their superfans and loyal customers. To see how it works, check out our YouTube playlist of handy video guides or read more about how a Discord community can help you smash your brand goals.
Contact Levellr today to learn how a thriving community helps tackle rising customer acquisition costs and turns fans into superfans.