Everyone pays for user acquisition – Cash App
Think about this, one of Cash App’s user growth and engagement strategy is to give a random user $100 every week on their socials.
To enter you must have an account and share your $cashtag in the comments, that’s it.
On one Instagram post, I counted over 6,000 comments entering the giveaway. Which means 6,000 comments x 1% conversion rate = 600 new users from a $100 giveaway.
If they spent $100 for the giveaway + another $500 for the post art = $600 / 600 new users = a $1 new user acquisition cost. Not bad right?
Well, it gets better, because if you used Adwords to acquire the same users you would pay…
$2.50 per click (for banking keywords) x 1,200 clicks (for a VERY generous 20% conversion rate) = $3,000 total acquisition cost for those same 600 users, and you haven’t even started engaging your existing users either!
Remember, everyone pays for users. Even if you don’t “spend” any money on Ads, you still pay a marketing team, have a monthly fee for your custom email, and pay an electricity bill.
All users cost something, the question is, how efficient can you be by thinking outside of the box?