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Customer Acquisition The art of profitably getting new customers for your business

Customer Acquisition The art of profitably getting new customers for your business

Customer acquisition, it doesn’t really matter whether you’re a start up founder trying to get your first ten customers, or you’re a big multinational corporate CEO reaching your 10,000th customer. Customer acquisition is the one thing that will always be a goal for the business no matter how small or big it is. It’s a process that never stops being relevant for business owners.

Yet, customer acquisition isn’t a game of chance or luck like some business owners think. It’s a process that needed to be studied and planned carefully with applied good strategies and market studies, to be able to successfully grow your business consistently and profitably.

What is customer acquisition?

What is customer acquisition?

In simple words, we can say that customer acquisition is the process of finding potential customers and persuade them to buy from your business products on a repeatable and measurable basis; not a one shot customer.

Many business owners peruse just one or two methods thinking that this’s the way to achieve more customer acquisition in the market; while in fact customer acquisition is a process that happens in stage.

Marketers and entrepreneurs usually visualize the stages those stages as a customer acquisition funnel that they discuss in 3 main stages:

Awareness

The first and top stage in the customer acquisition funnel. In this stage, your target as business owner is to create awareness among those who you’re targeting as audience, it usually focuses on a wide range of audience who you feel they have interest in your selling products, but they don’t have the intent to buy yet.

 Consideration

Consideration

 This stage of the funnel is when a potential customer starts to take action, which he is interested to buy your product. Now he moves from the (awareness) of your product to the middle of the funnel (considering) buying your product. The actions customers take in this stage usually are (following your brand’s social media- signing up for an email list to follow your brand news and asking about your product).

Purchasing

This is the final stage of the funnel that a potential customer goes through before turning into a customer, in this stage normally potential customers take some serious intentions towards purchasing your product like (adding your product to their cart or signing up for a free trial). In this stage it’s the brand’s mission to turn potential customers to consistent loyal customers to the brand by many ways to make them actually do the purchase, digital marketing had made this job much easier for business owners, now they can track exactly the needs and cost of their customers.

Calculating customer acquisition cost (CAC)

Calculating customer acquisition cost (CAC)

As every business owner knows, customers don’t come for free; we can say that the cost of customers can be calculated based on the marketing effort and money you put to bring those customers into your circle of buyers.

Therefore; you need to know whether your customer acquisition efforts are working due the plan or not? Is it worth the efforts?

In order to know that, you will need to understand how to calculate your customer acquisition cost (CAC), which is the cost of marketing divided by the number of new customers acquired. When you calculate your (CAC), you’ll be able to know if your marketing strategy is profitable for you or not. Therefore; if you find out that it’s not profitable for you, you’ll need to go with another strategy to acquire customers.

In the following part of this article, we will introduce some customer acquisition strategies that proved to be successful and profitable for the business owners who took them into action.

Customer acquisition strategies

  • Paid advertising

Customer acquisition strategies

Paid online advertising is one of the most famous and common ways to acquire customers. Especially in the age of digital marketing; the biggest advantage when it comes to paid online ads and what makes ecommerce brands to turn to Facebook, google and other platforms is that, online paid ads provide measurement tools and many other options that allow you to make the most of your budget.

There are many platforms that offer the option of online ads, but it can be said that (Facebook Ads) and (Google Ads) are the biggest providers for paid traffic.

  • Advantages for paid online Ads
  • Fast growth
  • Targeting abilities
  • Potential pitfalls
  • Expensive
  • Learning curve

 

  • Negotiate influencer sponsorships 

Negotiate influencer sponsorships 

Paying someone with a large following list to promote you is one of the best approaches you can take if you have a good marketing budget. Influencers marketing had become a popular form of online advertising in the business market.

The most important thing in influencer marketing is finding the right influencers to promote your product. Influencers with active and engaged followers to make sure that your product will be seen as well as the way those influencers are going to present your product.

  • Advantages
  • Brand awareness:
  • Niche targeting
  • Potential Pitfalls
  • Tracking ROI
  • Upfront payments

 

  • Building an Email list

Building an Email list

Collecting email addresses can be considered one of the best approaches to generate leads for customer acquisition, as the results email marketing produces for the business are very profitable. There’re many ways to create an email list, and once your email list is built, you can start sending email campaign with targeted messages which can also be personalized to help you turn leads into customers.

Generating leads involves collecting information from potential customers in order to nurture them or retarget them with ads to eventually convert them into a customer.

  • Advantages
  • Recurring revenue
  • Customer data available
  • Potential pitfalls
  • Delivery rates
  • Low-quality emails

Email marketing is a very good customer acquisition strategy to go for when your business is launching a new product and also for businesses with multiple consumable products.

  • Start a referral program

Start a referral program

word-of-mouth referrals are one of the most influential forms of marketing for many reasons, the most important one is that because people trust the words of people they know more than ads of a company they don’t know. Thought, a personal recommendation can go a long way.

Creating a referral program will help you recruit your loyal customers into marketing tools. A referral program will work in rewarding your existing customers every time they get someone new to be a customer and purchase from your business.

  • Advantages
  • Low cost
  • Customer loyalty
  • Repeated purchase
  • Potential pitfalls
  • Low engagement with the program
  • Organization and tracking

Therefore; creating referral programs is a great customer acquisition strategy for businesses with existing and loyal customers.

  • Running traditional ads

Running traditional ads

Even though digital marketing has taken a big share from old school marketing; yet old school advertising is still fighting the big fight to stay among the important and powerful strategies of customer acquisition.

Old tradition advertising like printed flyers, billboards or even TV ads can still be good way for your business to diverse your marketing channels and reach new audience to widen your circle of customers.

Also the cost of traditional advertising is now much less than before with the technology enhancement that have been made in this industry.

  • Advantage
  • Decreasing cost
  • Consumer trust
  • Potential pitfalls
  • Tracking
  • Upfront investment

Traditional advertising is considered one of the best customer acquisition strategies for businesses with high-priced products and big budget, it’s also good for local businesses.

  • Search engine optimization 

Search engine optimization 

In the age of Internet that we are living, people are programmed to start their search for anything with a google click, and they normally don’t look past the first page of results. Therefore; creating specific website content to help your brand show in the first pages of google results is known as “Search engine optimization” (SEO).

Keywords research and a blog that has those findings in it or in your website content are the main keys for your website to go up in the ranking of google results.

  • Advantages
  • Creating a passive and organic traffic on your website
  • Creating Evergreen traffic without the need to pay for every visitor
  • Potential pitfalls
  • Slow growth of your website
  • The strong competition

(SEO) is the best customer acquisition strategy for content creators especially those with repeated and quality content, it’s also good for businesses who are willing to play the long game of slowly but surely.

  • Creating an online audience

Creating an online audience

Social media platforms have created such a great potential opportunity for individuals and business to create their online audience and turn them into potential customers. For example, Gym Shark company has a huge Instagram crowd that it’s now reaching more than 3 million followers. All those are potential customers for the sports-wear company.

There are many ways to build up an audience on social media, it all requires consistency content and engaging with the audience. That will create a crowd of customers for you that you can reach at any time when you want to make any announcement on any of your products.

  • Advantages
  • Organic traffic
  • Social proof
  • Potential pitfalls
  • Slow growth
  • Social media algorithm changes

Therefore; creating an online audience is suitable for content creators and business on budgets.

customer loyalty and purchases are important to the overall benefit of your business. But, attracting new customers through customer acquisition is one of the ways to grow your business beyond your current limits.

You can personalize the customer acquisitions strategies to fit your type of business or you can use them all and try what’s the best one for your business. You have to keep testing new channels and approaches to find out what works best for you.

Customer Acquisition The art of profitably getting new customers for your business