As per the last five years, the cost of acquiring customers has increased more than 50%.
There is no hidden secret that marketing is becoming expensive and people are turning less trustworthy towards the brand.
Even though this business is looking for new ways to improve their approach. There are two ideal properties that marketing has and that includes improving ROI and reducing the customer acquisition cost.
To understand from the basics and how you can achieve a better customer acquisition without spending a lot. Here is the guide you can follow.
What Is Customer Acquisition?
Well, it’s a process that brings more customers or potential clients to the business.
With customer acquisition marketing, you aim to create a systematic strategy that can be sustainable and revolve around the latest changes as well as trends.
In this process, there are multiple versions on which the customer acquisition works. The key stages included :
- Awareness: when a customer discovers the brand and get interested
- Consideration: When they start the research to purchase
- Conversion: when they do the purchase
- Retention: when they visit again for the next purchase.
Crucial to remember that acquisition starts when you connect with your new customer and then its role in the retention strategy.
The two work for keeping the marketing program efficient and profitable.
This suits every kind of business regardless of the niche and size. Also, it helps the business to :
- Making money to meet their costs, reinvesting for better growth, and paying their employees on time.
- Showing the evidence for the outside parties like partners, influencers, and investors
Also understanding that the customer is not going to stick forever. It doesn’t matter how good your retention strategy, there will be a gap that you need to fill and keep moving.
What is Acquisition Marketing And Channels?
Acquisition marketing is useful and different as compared to any other marketing. With this, you implant different strategies for your new customers in marketing your product and services.
Thie marketing targets the customers who are aware and considering buying your products. Also unique as it requires collaboration between your customer service and success team.
To understand the channels, it’s broken into different types such as methods, platforms, strategies through which you get the new leads, readers, or fans
For choosing the best one, you are going to need to focus on the type of medicine, however strategy and resources.
Also, it can be divided into paid, free, inbound and outbound, etc.
Here are a few of the channels that you can consider :
Content marketing is an effective method that includes all kinds of business. In today’s industry, content is important for informing about the products, brand and holding their attention.
The marketers focus on creating something new, relevant, and exciting to snag their audience along with keeping them on the website.
It’s a highly recommended method for business and includes all types of audiences.
When you do blogging allows for exploring the business topics, sharing your expertise and information with more people.
It also helps in boosting the authority and brings more opportunities.
It’s one of the methods that are extremely complicated forms when it comes to producing content. There are lots of things included but it’s helpful for the long run.
It includes lots of works like writing scripts, editing, production, etc. It tends to be an expensive method so it’s better to use it for the best ideas.
The alternative for this method is creating the Slideshare, it’s also useful and informative.
There are two methods here, either you can choose the paid or choose organic. Both are useful and help in boosting brand awareness.
Social media helps get more attention as it’s much easier to attract people. You can target the huge range and get in touch with them too.
Similar to social media, search marketing also has organic and paid options.
The organic method is known as search engine optimization or SEO where paid one is pay per click or PPC.
In the organic method, you can complement content marketing by optimizing the content. Whereas paid per click can help in showing up more when people search for something related to your business.
How To Create Customer Acquisition Strategy?
To make the strategy for your customer acquisition. There are some practices that you can follow. Also, it’s helpful to keep your strategy on point and effective.
Well to start, here is what you need to follow :
Step 1: Start With Identifying Customers
The first one includes understanding your audience and what base you hold. Not just your current but also the one you are targeting.
For this, you are going to need to study competitors and analyze market research. With this, you can learn more about the ideal customer and setting the goals for marketing.
If you are considering how to start, here are few points to consider :
- What your customer will accomplish from your services and products?
- Why do they want to purchase your products?
- What benefits does your customer want?
- What are the struggles they face?
- What are the demographics of your customer?
- Who would be your ideal customer for the services and products?
- Where does your audience get the related information?
With this, you can expand your understanding of your audience and create profiles to target your audience better.
You can identify the customers who hold the highest value traits or behavior.
This will help know which channels are going to be best for the customer acquisition and how much you can invest for the results.
Step 2: Get Your Goals & Objectives Straight
When you understand who is your ideal customer, now you can focus on defining the goals and objectives.
With this, you can set the results that will help in planning your customer acquisition and guiding your all efforts.
Also, make sure that you set your revenue expectation and for that, you are going to make the best of the acquisition strategy that affects the customer churn as well as the growth in the current customer base.
To measure if your marketing efforts are working or not, you can use CLV or customer lifetime value, CAC ( customer acquisition costs). MRR ( Monthly recurring revenue). With this, you can align the goals of your overall business together.
Step 3: Choose The Ideal Channel
To make your strategy effective, you should have an understanding of your customer and goals. But you are going to choose the channel based on content and results from your research.
A customer acquisition channel is a platform where your ideal audience connects with the brand for the first time. This platform can be anything including social media, paid ads, or organic search.
There are some popular options that you might consider for customer acquisition channels:
- Paid social
Step 4: Develop Your Strategy As Per The Channel
For the business, it’s common to start with every kind of channel. However, it can be problematic and a waste of money too.
When you are creating the marketings strategy for each channel, you are going to focus on :
- Choosing content that your audience interact with most
- Understanding your KPIs
- Understanding what your competitors are doing for this’
Depending on your strategy, you might find that your audience is not using all the channels. For example, if you may find more audience on Facebook or maybe you can better use videos for conveying your thoughts.
You can consider using platforms like Instagram and Youtube as they are one of the useful ones in today’s market
Step 5: Understand Your Customer Base For Communication
Without knowing the gaps that your customer acquisition process, you can’t be sure if it works or not. And your customer is the best one who can tell you that.
To get this information, first, you request them to share their feedback.
You can choose different ways to get better communication as it depends on your customer base.
You can consider options like email contact forms, surveys, customer interviews, blog posts, and social media posts.
Along with this, you can do the deal promotion, get feedback, and be available when they want to talk.
Make sure you have a communication plan that connects with your customer on a regular basis.
With this, you can do better identification and capitalization on what your customers expect from your services and products.
Step 6: Measure Your Strategy For Improving
Don’t plan your business if you are not considering utilizing the analytics. If you don’t know what is working or what is not, if your page is performing well or not, etc are valuable information for keeping your strategy successful.
When it comes to customer acquisition, there are several factors that can affect it. And because of this, it’s important to do analyzing and measuring your overall results.
When you do the analytics for customer acquisition, here are few things you get a clear idea of :
- Where your customer live
- Where they hear about your services or products
- Where they did their purchase
- Other important points
Also to start your tracking and monitoring of the metrics, here are some options you can consider choosing.
- Churn rate
- Customer lifetime value or LTV
- Customer acquisition costs or CAC
- New customer growth
- The ratio of lifetime value to customer acquisition costs or LTV: CAC
How To Measure Your Customer Acquisition?
It is important to understand the customer acquisition costs which is also known as CAC. This is the cost associated with your new customers and clients to bring to the business.
It includes the cost related to marketing, advertising, and events. However, it mostly depends on a specific campaign or window time.
CAC is crucial to understand the real value of the efforts in marketing. Also, you get to measure the ROI too.
The high-level cost comes with dividing the marketing cost which is associated with the campaign and numbers of customers.
The formula for CAC is :
CAC = MC/ CA
Here you can define,
- CAC is a Customer acquisition cost
- MC is a Marketing cost
- CA is a Customer acquired
To understand, you need to consider the CAC where you add marketing spend costs from your campaign to salaries.
The formula here is :
CAC = ( MC + W+ S+ OS +OH) / CA
Here you can define,
- CAC is a customer acquisition cost
- MC is marketing costs
- W is a wage for sales or marketing
- S is for software in marketing and sales
- OS is outsourced software
- OH is overhead for marketing & sales
- CA is customer acquired
How You Can Minimize The Customer Acquisition Cost?
When it comes to marketing, you can always do something better. With new ideas, you can reach more people, get a new audience, communicate better messages, and marketing the cost for acquisition.
For improving your CAC, there are lots of ways you can choose. Such as :
Improving Your Conversion Efforts On Website
To improve, you require enhancing the CTA, ensuring that your site is good for different devices and responsive.
Optimize your landing page and consider checking the shopping cart for making sure everything is working great.
It will be helpful when you use any customer acquisition methods as it will keep it perfect and effective.
Adjusting And Optimizing Your Strategy
Take some time to look at your acquisition strategy and get the blueprint. Make sure you lay out the strategy and look for the points where it’s costing you.
There will be some ways from where you can reduce the cost. Maybe you are adding too much investment in marketing or manpower.
It might be that special channels get more costly as time passes. Here you can minimize your cost by choosing any other channel depending on your budget.
Boosting Your Current Customer Value
Well, here you might need some upgrading or releasing new products. It helps you get more invested in what you are doing.
Also, the value of your customer increases when they do refer to some other person to use the brand Or doing any kind of act that can help your brand to promote.
Strategies For Efficient Customer Acquisition
The customer acquisition strategies are divided into online and offline options. You can consider any of them that suits your bill and requirement. Also, there are lots of important factors.
When you are choosing the strategy to use, here are a few listed from online and offline channels that you can consider.
The founders of startup businesses suggested that paid marketing is important as it offers much higher conversions.
When you are choosing the strategies for paid marketing, here is what you can consider :
Get Engagement Metrics To More Audience On Ads
The easy way here is to use the paid marketing campaigns that have better conversions. You can boost audience management by targeting it to your audience.
You can start with creating the post for the social media channels. To boost engagement, you can do engagement ads so you can get more likes and comments.
Key Points: The first point here is to understand the promotion and doing it properly in different communities.
Run ads so that can get you more leads and high engagement for better sales.
You can target countries where you can use CPC but low cost to get the initial engagement.
To understand this, you can use the content from social media, emails, and websites to those who previously liked similar content.
Remarketing ads works but for that, you need the advertising campaign. Here you need to collect leads from social media and funnels.
At this point, add the paid marketing for the remarketing.
Pro tip: You can do segment remarketing to your audience. For example, if someone is on checkout post, you can use discounts and trial offers as they might be more interested in that.
The next you can consider is the audience who looks like or similar to your current ones. Identify the customers who did purchase from you and now make them look like you.
With this, you can create the customer base which is potential, and with targeted ads, you can get more leads.
Banners, Stickers & Billboards
There are lots of businesses that are doing the promotion through billboards and banners. Its offline method for acquisition customers but also for creating better awareness and credibility regarding the brand.
Lots of businesses like resorts do offline marketing for helping the user’s trust and credibility.
Lots of eCommerce stores opt for this option for creating their campaigns This is a helpful way to keep in contact with the audience. Also, you can remind them about your products in case they missed out.
It’s a clever way that you can use for remarketing. With this, you can use customer acquisition strategies such as :
Giving Value To Your Readers
Even though it’s an outdated method, marketers still use it for a reason. Email marketing is effective even now.
Also, people do purchase if they get reminded of the right time and mood. That’s why it’s become important to offer them the real values and why they should subscribe to your email.
You can monitor their actions and use this email analytics to improve the results.
Increase Their Engagement With Unattended Emails
You can get the data about those emails that are still not attended by your customers. You can change it with another subject to increase the chance of getting it opened.
Well, the trick was introduced by Noah Kagan. He did the experiment by sending one email twice to the customers.
To his first email, the open rate was 70% where 30% didn’t check the email.
Well, he waited for a week then he sent the same thing again to those who didn’t click the email the first time.
By adding a new subject line, and sending it again reduces the chances of getting an email ignored. Also, you can keep it less spammy.
Offer Content That Solves Problems
The content you are offering to your audience should be problem-solving. Well, you can use it for information about your business or highlighting the tutorial information.
To understand how to create such content, you first need to identify what are the pain points of your targeted audience.
There are lots of stores that are using QR codes. It makes the visitors directly along with the websites.
If you are selling products, services, etc, you can promote the codes for offline marketing as well.
Do a lot Of Giveaways
You are going to need more than just words for convincing to purchase the products.
There are lots of people who don’t even sway even if you do influencer marketing or use word to mouth.
To win the customers and turn them into loyal ones, you are going to need more giveaways. You can offer more chances and experience the products.
You might need to add a little push and with this giveaway, you can do it perfectly.
Pro tip: the easiest way to implement customer acquisition strategies is to use giveaway campaigns on different social media.
Build Tools For Promoting Saas Products
With this, you can improve your lead generation, provide the tools that can help your targeted audience, and make their life easy.
You can get the value but also have better goodwill promotion simultaneously.
Integrate Your Products As Per Needs
If you have two products for example, and one is getting a good response unlike the next one. You can use capitalizing on both by integrating them.
However, make sure the products should relate and solve the problems otherwise people won’t buy.
You can also connect with other businesses for improving your products and filling the gaps. With this, you can offer the product that your audience needs and also get more sales on your products.
Local Event Marketing
When it comes to marketing offline, local event marketing is one of the ways for acquiring more customers.
You can host your local community events to get more understanding about your area. You can also use it for using the product and services along with free credits and prizes.
Pro tip: You can use promo offers as it’s one of the good ideas. It’s also helpful for acquiring the user journey.
For getting new customers, affiliate marketing is another option you can consider. One of the best examples of this is Amazon.
The company did amazing growth based on its affiliate marketing. From this, there are lots of other companies who are using the same strategies to get more customers.
Organic Search Marketing
When it comes to organic, you are not spending money on marketing your product or services.
Here you post content on channels and through which you get traffic which boosts your ranking in search engines.
Well to get the organic customers, are few ways to consider
Paid Keywords For Ranking
The competition is way too tight and to beat that, you can use paid marketing for finding the right keywords.
Now you can do the search and find the organic keywords. With this, you can spend less on ads and get more conversions.
Republishing Or Repurposing Contents
Every content you post has its expiry date and that affects your ranking which means less traffic to your website.
To get the ranking, you can keep your content updated. You can do the repurposing by offering other formats.
For example, if you have written a post now you can use the information for slideshow, Infographic, or images. You can use different platforms to share the content.
Social Media Marketing
Social media marketing is the organic way that helps in gaining customers. Some of the methods that you can try for acquiring customers, here are mentioned.
Collaborating With Influencers
There are some big names on social media, these people can help you in gaining more customers and reaching a new audience.
The influencers are those people who have a large following on their social media platforms. They are willing to sponsor the products or content for using their fanbase.
Well, they will charge fees depending on the audience and the niche you work in.
Quora is an example you can consider, here you can get questions and answers about all kinds of topics.
Also using the platform for starting the profile and branding your promotion. You can answer the questions related to your niche and brand for boosting the reach to new customers.
Capitalizing On UGC
UGC is user-generated content that helps you in increasing your reach. Also, it’s a clever way for promoting the content.
However, it doesn’t guarantee customer acquisition but it does boost reach to the customer. Also, the person content you are sharing will do the sharing on their circle too.
How To Improve The Customer Acquisition Strategy?
Every business requires new customers for growth and success. So there are lots of important reasons how the new customer can help you in running your business.
With an ideal customer acquisition strategy, you can reach your ideal customers.
But to keep your customer acquisition strategy on point and to improve, here are four things to consider:
Your strategy should have the first and most important thing that can work for a longer period.
It means you are going to invest no matter if it’s human, money, or time, this should be the foreseeable future.
For example, if you are using a blog to acquire more customers. Make sure you are using the tools and resources for keeping it sure for the long run.
That’s why you need inbound marketing to keep your traffic sustainable.
Targeting The Customers
All consumers are not going to be the customers. Also using your customer acquisition, you can end up wasting the resources.
You need to point it to the people who are really your customers. Before you invest in methods, keep sure who you are targeting.
Start with defining your persona and take out those customers who are just occupying space and investment.
For example, if you are targeting the millennials that are looking for using the videos for their content marketing. Well youtube, there are 91% of adults fall between 18 to 29 age.
Your customer acquisition strategy should have the flexibility for marketing and sales. People and the market keep changing, and it requires a feeble approach to adjust according to that.
In today’s market, consumers are highly skeptical when it comes to brand claims.
According to the HubSpot Research Study, they have 81% of consumers trust their friends or family over what the company says.
Keep your customer acquisition strategy to be more pliable and respond to the latest trends to market.
Keep your strategy diverse and use a variety of methods for customer acquisition. Also, it helps you in giving you more reach to your new audience and more leads generation.
With this, you can also create a well-balanced risk and reward. Also, it increases your strategy in better effectiveness and on point.
Tips To Keep Your Customer Acquisition On Point
There is no doubt that your customer acquisition is hard. However, choosing the right way and strategy to keep them effective.
It’s helpful for purchasing the product and gets new business audiences.
To keep it more effective, here are few tips that you need to consider if you want to know what makes your customer acquisition successful.
1. Keep Your Content Useful
Content is the key to nurturing leads and getting a more committed relationship. Also for the B2B sales, it’s the more ideal companion to keep your content marketing.
Also for the sales process, the content is important. The business needs more ways to connect with the audience and content is what holds their interest.
No matter what channels or methods you choose, to get new customers, you have to keep your content game on point.
2. Measure The Broad Array In Marketing Media
The media to approach the customers to keep changing, you can consider different ones and do the shift as per your liking.
To understand which is working, the only thing you can do here is to test it. Investing in only one or two strategies might be your biggest mistake.
3. Choose Omni Channel Customers Acquisition
Well, the ideal way and best to consider is investing in the Omnichannel customer acquisition strategy. Here you look for strategies that can not just connect with your online but offline important points too.
To make sure that you are staying out of the competition, you are going to need the customer data and use it more efficiently. Keep collecting the Information from the channels that are relevant to your business.
Using it also helps you in effecting on different stages throughout the buyer’s journey.
4. Get Your Target Market Straight
Even though the point is now extremely common but identifying your target market is the most important part,
When you are not aware of whom you are targeting or what your niche, how are you supposed to do the planning for customer acquisition marketing strategies? Also, you are going to make it more engaging so it can pull more people.
5. Focus On Lifetime Value Or LTV
It’s one of the most important metrics that you need for having a successful customer acquisition strategy.
With the lifetime value of the user, you will get to know the revenue that the acquired one has for the period.
Also, LTV is considered as an ingredient that is most important for cost acquisition. To make sure you are using it best, focus on the two most important aspects that include engagement and communication.
6. Target Audience Assessment & Identification
It’s important to keep your strategy, also important to do the assessing and identifying the audience you are targeting.
You can consider this if you haven’t done proper identifying and assessing of your audience, no matter what you do after that it will waste the effort, money, and resources.
You might end up sending the wrong message or use the wrong tactics
The basic components are doing the research and determining the product and services that are needed. You are going to need customer data based on demographic information etc.
You can divide the characteristics and desires of your target audience. Also, it will be helpful to guide your effort.
7. Cover The Basics First
The basic means the customer services, not just good but excellent. No matter what your social media, offer referral sources or do more than that if word of mouth is not great. It will be not for the going for long term growth.
The correct way is to cover your basics. Focus on customer service. Also, there is nothing more effective for increasing customer value than providing it to the existing client base.
8. Understand The Importance Of Numbers
When it’s about customer acquisition, it can be expensive and difficult. That’s why you need the plan more in detail to get more successful results.
Also, it’s important to understand the role of numbers in planning.
For startups to the business that is established, understanding the numbers can give you much more clarity in investments and choosing the methods.
It gives detailed data to compare and to focus on which is working well.
9. Building Trust Is Crucial
To make your customer acquisition, people go with the suggestion when they trust someone instead of someone who are new to them and with selling purpose
Trust is a crucial factor when it comes to sales and marketing. Also, it’s a slow process but it’s worth the time and once you have it, you get the loyalty for your brand too.
10. Focus On Satisfying Customers
To keep your customer acquisition successful for the business, the key ingredient that you need to focus on is keeping your customer satisfied.
There is no better marketing than making your customers satisfied with your services. Also, its effectiveness as more people are looking for such companies who can give them what they are looking for.
To keep your strategies and planning on point, this is the important part. Also, it helps you in boosting your reach and you can get more customers for your brand.
You can initiate people sharing their thoughts with others which boost their trust. You can build more loyal customers and since the others are recommending you, it leaves no doubts on why they should not purchase from you.
Frequently Asked Questions ( FAQs)
With this, you get the idea of the cost that is involved in your product marketing, accessibility, and research.
Also, it helps the company to do a better calculation about how much their customers play an important role.It’s also important for doing calculations related to the resulting ROI of customer acquisition.
There are basic four lessons that you can consider. It includes building the engagement and limiting on who much you will spend.Next includes educating your prospects and developing the relationship of partnership.
There are basic four lessons that you can consider. It includes building the engagement and limiting on who much you will spend.Next includes educating your prospects and developing the relationship of partnership.
It refers to the process which helps the business to bring more customers. Including the idea of targeting new people, you also convince them to do the purchase and try your brand.Also, it boosts brand awareness and helps in keeping the sales better for the business.