Every business wants to acquire new customers; no one can deny that every business loves to get new customers. But it can’t happen overnight. So it would be best if you work hard to acquire customers and retain them.
Therefore, it’s essential to know customer acquisition, its importance and how to build a smart customer acquisition strategy that will let you get new customers.
What Is Customer Acquisition?
Customer acquisition is a method through which you acquire new clients or customers for your business. Therefore, every company must develop a well-organized and sustainable customer acquisition strategy that goes well while considering industry trends. It doesn’t matter what your business’s size is, but if you want to make a profit it becomes imperative to incorporate customer acquisition in your business strategy.
Also, keep in mind that customer acquisition is different from lead generation and you should not mix them. Whenever we talk about the business world, we usually visualize the customer going through the funnel. When customers go through the funnel, customers:
- Get to know about your brand and involve in your offerings
- Add your products or services in their options list they’re making and
- Thinking of becoming a paying customer of your business
If we talk about Lead generation, it is also a part of the sales funnel. Customer acquisition, though, is the complete end-to-end process that covers all of these stages.
Since we have understood the meaning of customer acquisitions, it’s time to move ahead and look at its benefits.
Benefits of Customer Acquisition
1. It Increases Sales
The obvious reason behind getting new customers to any business is to boost sales of its products. Therefore, we all have noticed that adverts and promotional activities are going on to make more profit. If your business is not making a profit, then there is no meaning to run a non-profit organization, which is not an aim when you start a business.
Getting new customers lets the company make more sales, which further improves the profit margins. When you acquire new customers, they enter into a sales funnel with their purchasing power. That means if you were making fewer profits before their entry, your margins would go up after getting the new acquisition.
2. New Customers Let You Expand your Business
When you get new clients more than your expectations, in that case, instead of running away, considering expanding your business is a good idea. Also, it is one of the key benefits of acquisitions as it will let you take your company to a whole new level.
This process will include procuring new machines, extending the premises, bringing advanced, large capacity machines, etc. By doing so, you will have a bigger company than you started. Most businesses you view around begun small. However, due to the acquisition of customers, they had to expand to serve the demand.
3. Boosts Brand Awareness
Another reason behind why people advertise to acquire new clients is to improve brand awareness. For instance, if you sell your product in a particular geographical area, you need to make efforts to get into another region. Moreover, activities involved in product advertisement and promotion are: making new clients spread awareness in many areas, that leads to more profits.
Brand awareness further assists you in scaling up your business, boosts sales, and also improves brand perception among the target market. Moreover, it leads you to acquire audience data. To make this brand awareness initiative run, you have to get more clients through various promotional means.
4. Let You Maintain Business.
There is some point in time every business loses customers.. To save yourself from such a situation, you need to get new customers to maintain a balance between existing and absent. When your business is unable to get new customers, it ends up losing earnings and eventually starts making losses. Therefore the customer’s number will remain diminishing if your strategies fail to attract new buyers and engage the existing ones. So continually seeking new clients supports your business to remain in the game, even if some customers exit.
5. New Customers Support Your Business’s Growth
New customers not only let you make more profits and sales but also help you grow your business. And they do this through shopping, ideas, feedback, and reviews; they will help you in one or the other way and become a part of your business growth. Without new customers, your business may deteriorate or fail to proceed at all.
Customers will familiarize you with how your business is performing; they will pinpoint mistakes and come with important information from all kinds of competitors, developing or making your business run better. Most companies tend to launch new products because customers get them from other companies. If your business can attract new clients, it can further innovate and produce new products as per the new client’s recommendations.
7 Effective Customer Acquisition Strategies
1. Determine the right target customers for your business
This is the primary thing you need to add to your customer acquisition strategy is to determine the right users or target potential audience for your business. By targeting the right audience there are chances that your product will solve their problems and make them your loyal customers. All you have to determine who they are and concentrate on user acquisitions to get the best results.
But in case if you do not have any target audience in mind, it will restrict you from efficiently marketing your brand. Therefore, you leverage its power you need to focus on getting a niche market where you can develop your products or services.
Now the question is how to determine the right target customers for your business? One method to do this is to conduct extensive market research to establish who and how you should market your product to acquire new customers.
2. Pick the right channels
Once you determine your target audience, it’s time to choose the right channels for engaging and acquiring potential customers you’ve recognised through market research.
A customer acquisition channel let your customers meet your brand for the first time. You can do it through organic search, social media, or paid advertising. Then, by employing the right customer acquisition channels, you can draw new customers.
Here are some of the most common customer acquisition channels:
- SEO: Write down lengthy content posts that are optimized for search engines
- Paid social: Short but snappy ads with scintillating visuals
- Instagram: Posts that are visually appealing and short videos
- Facebook: one-to-one messaging, Live video streaming, advertising
- YouTube: Extensive, more accurate, and entertaining video content
- Referrals: Discount and loyalty rewards
3. Co-branding content and sharing leads
Co-branding is one of the most reliable ways to attract a new audience. In co-branding piece of content is supported by two brands who have jointly agreed to do so. The success in this approach is quite huge as your content gets seen by your customers and the customer-owned by the other brand. Further, you partner with a large customer-based brand; however, they are not your immediate competitor.
4. Different strategies for every channel
After analyzing different customer acquisition channels, you might need to get on al possible channels; however, that can limit your customer acquisition strategy.
While building a strategy for every channel, ascertain:
- What content does your target audience prefer to interact with?
- What are your contenders posting?
- What does your KPIs show you?
Based on your answers, decide what channel would be the best for your customers and your business. Therefore, try and research the most suitable strategies for every channel to make the most of your customer acquisition efforts.
5. Easily accessible website
Whenever a visitor visits your site for the first time, the first thing he will see is the accessibility of your website. How easy it is to go through the website and make a purchase. Hence, it would help if you kept things easy and straightforward to use.
For instance, you have an eCommerce website, so you have to make sure that there should be a one-page checkout process to make things easier for them. Also, you have to keep a check on the load time of the website. If you’re utilising a bulky web platform, odds are, you could have a more bounce rate as visitors choose it’s not worth waiting for a page to load.
Therefore, consider adding live chat software to your website. Several reputed brands like Amazon and eBay have a customer-facing live chat integration that enables them to get higher customer fulfilment, enhancing their revenue.
6. Publish content on external sites
One way to enhance the organic search ranking of your website is by linking blogging campaigns with referral tactics for an acquisition rate hike. In addition, consistently posting on highly authoritative sites will help you to spread the word out about your brand that will further enhance the volume of traffic you receive from external sites.
7. Marketing on social media
Social media empowers you to make some of the most productive acquisitions possible. In addition, it helps in building brand awareness. It also magnifies your content marketing efforts by sharing content where your target audience hangs out, like Twitter, Linkedin, Facebook, Instagram, etc.
However, social media marketing appears to be a hit or miss proposition. For example, 13% of marketers think that social media marketing is one of the most unsatisfactory forms of digital marketing available. But, 87% of marketers appear to be profiting from their social media marketing.
To obtain customers from social media, leverage the interests of your target audience in your content or product to spread the word about your brand further.
Customer acquisition is not a one day show; it requires consistency. You require careful planning and execution. You need to deliberate the best ways to drive and convert visitors into customers on your website.
You must pick the right channel to have a good product fit and then examine the content to attract the customers to convert quickly.
How referral programs can help you acquire more customers?
Referral programs let brands incentivize their loyal customers whenever they bring referrals. Referrals mean bringing new customers into the customer base and further converting them. Thus, a referral program is a cost-effective strategy to make the most of it. So, if you want to launch a referral program for your brand, schedule a free demo with us and get a customizable strategy for your business.