The goal of customer acquisition is to convince people to buy your products or services. That’s it right?
Well, in basic terms yes. There is, however, more to it than you might expect. It is important to understand how people decide to buy (or not to buy).
The process begins with lead generation. Unless your target audience knows about your product or service, trusts it, and regards it, you are not generating revenue.
Then you have to convince those leads to convert on your offers to buy. What makes them tick? And how can you create a customer acquisition strategy that works?
We are going to explore these in the following blog. So without further ado, let’s dive in!
What Is a Customer Acquisition Strategy?
You can define customer acquisition strategy as the steps or processes you observe to persuade consumers to purchase your product or service.
Testing as many inbound strategies as possible (such as content marketing, webinars, and social media) as well as outbound strategies (such as cold outreach via email or LinkedIn and conferences) can help you figure out which strategies work best and then invest heavily in their implementation.
Therefore, both time and money need to be devoted to customer acquisition. If you don’t, you’ll probably miss out on many sales.
In other words, your customer acquisition strategy includes everything you do to bring consumers to the end of the purchase process. The process might involve many touch points, but you’re nurturing your leads so they’ll feel more comfortable giving you money.
Furthermore, your customer acquisition strategy takes into account consumer behavior. How do people interact with your website? Your emails? Your social channels? When you understand these behaviors, you can optimize your site to increase conversions.
Customer Acquisition Versus Customer Retention
Businesses and marketers face a major imbalance between customer acquisition and customer retention.
It’s not always a bad thing.
As an example, assume you are a seller of an informational product like an ebook or an online course. Since you only sell one product, customer retention is not important.
You might want to encourage past customers to buy copies of your informational product for their friends and family, but until you release a new product, you must focus more on customer acquisition.
Every business is different, so you have to find what works for you. It is always a good idea to start with just one product or service, regardless of the industry. Create the best product in the industry, then market the hell out of it.
Don’t branch out until you’re ready to grow. Entrepreneurs often scale before they’re ready to, which results in their business going bankrupt.
The Customer Acquisition Process
There are a lot of companies and marketers looking for ways to get more customers. They also have specific issues they must confront daily:
- What is the best customer acquisition strategy?
- In what ways does customer acquisition marketing work?
- What can you do to boost subscriber acquisition?
- What new business acquisition strategies and tactics are there?
In view of that brief summary above, customer acquisition is a pretty broad topic. Getting specific involves research and testing, not merely copying somebody else’s plan. Marketers are starting to discover the importance of doing this.
Customer Acquisition Example Process
Let’s take a look at an example of customer acquisition. What might it look like in action?
Imagine you’ve just built a digital marketing course, and you’d like other people to purchase it. So, you’ve launched a website, a few social media profiles, and an email marketing campaign.
Where do you go next?
Let’s start by answering some fundamental questions.
When you have the answers, you can begin to plan your strategy. If you want to increase customer acquisition, you might:
- If your previous emails have not been opened, send new emails to them.
- Invite bloggers and influencers to review your course for free.
- Make an exchange of guest posts, social media links, and other outreach with a fellow entrepreneur in your industry.
- Improve the content of your landing pages and product descriptions based on specific pain points and goals.
- Engage with your customers on social media, forums, and other online channels.
- Improve the copy of your landing page and sales page to emphasize the unique benefits your course offers over others.
The Best Customer Acquisition Techniques and Examples
I’ve been in the marketing business for a long time. My growth-hacking methods have always included customer acquisition as a major component.
Ideally, you want your business to grow fast and efficiently. If you want to achieve this, you need to attract more qualified prospects and convince them to become customers.
How? Prepare a hypothesis and test it, evaluate the results, and pivot if necessary. I have found it helpful, and I think it will help you, too.
Start defining your strategy
To begin, you must develop an initial customer acquisition strategy. Obviously it won’t be perfect – it might even not work – but everyone has to start somewhere.
Begin with what you know. Perhaps you conducted market research or sold another product. Perhaps you have a wealth of information about your target audience.
Your odds of acquiring customers will increase when you use that information.
Create an estimate for your customer acquisition cost
Customer acquisition cost refers to the money that you spend to acquire each customer who makes a purchase.
Essentially, it’s the amount you spend on advertising, marketing, and other activities divided by how many people you sell to.
Imagine that you spent $10,000 over the course of 30 days. Your company acquires 1,000 customers. So your cost per customer acquisition is $10.
However, that’s not the end of the story.
The cost of a product can range from $0.01 to $10 million or more. While those examples are obviously extreme, the point stands.
Based on our $10 customer acquisition cost, we need to look at how much you spend on average for your company.
For example, consider a $50 product. By spending $10 to acquire a new customer, you earn $40.
But what if you’re selling your product for $2? That means you’re going into debt of $8 per customer because of your customer acquisition costs. A situation like that is never good.
Identify your customer acquisition costs and track them over time. Ideally, you want it to decrease as much as possible relative to the average on your website.
Define your target audience
The conversion funnel looks different for every business. Consumers typically follow a similar path from brand awareness to purchase, although there can be subtle differences.
Identifying how to boost customer acquisition requires understanding your conversion funnel.
You can start with other people’s research. According to Invesp, for instance, SaaS companies would be able to more than double their paying customers by offering free trials with no credit card required.
By utilizing this knowledge, you can increase the odds of acquiring new customers right from the start.
However, it is also important to consider the consumer’s perspective.
For example, I want to buy a microwave. Probably I will shop at Amazon or another e-commerce store, read reviews, and buy the microwave that appears to be the best value for the price.
This conversion funnel is pretty short. In addition to that, it’s based on need – my microwave just broke, so I need to replace it in order to heat up leftovers from last night.
But let’s say I’m buying a car. The cost of a microwave may be $75 or so, but the cost of a car can be $30,000 or more. That’s a big difference.
In that conversion funnel, I read articles, visit dealership websites, and take test drives.
It is important to determine how people find your product as well as when and why they decide to purchase it.
Build your landing pages and optimize them
Start by creating your landing pages. Whenever possible, each page should have one call to action – an invitation to complete the desired action.
When it comes to customer acquisition, your landing pages should direct consumers to buy your product or service.
Running effective A/B tests on landing pages can result in significant improvements in customer acquisition. Without knowing what your audience expects, you won’t be able to anticipate their needs.
When you use tools such as Hello Bar, CrazyEgg, HubSpot’s A/B Testing Kit, Optimizely, Omniconvert, AB Tasty, Freshmarketer, Convert and others, you can make A/B testing far more accurate. You generate data while enhancing other aspects of the website’s design, layout, copy, and assets.
Start with your copy. You might change a single word in a headline on your latest landing page. Test the control against a variation.
Finally, test the design of the page itself. You can test a landing page with no navigation and a landing page with a navigation bar. Change an image, alter font size or shape, or rearrange elements to achieve the desired effect.
Test different calls to action and other elements
When it comes to selling your product or service, your calls to action (CTAs) are crucial. Customers might simply leave the page if they don’t see a compelling reason to stay.
This is something that shouldn’t be left to chance. Make sure you test your CTA until you have the right version.
The needs of your customers will change and evolve over time. So you don’t miss recent changes in wants and needs, you’ll need to test your calls to action continuously.
As an example, in an economic downturn, price becomes the primary factor in consumer decision-making. It takes time for consumer confidence to rebuild after a recession, which means consumers are looking for the lowest price.
In the event your customers base their purchasing decisions on price, you should highlight your low price, overcome objections, and possibly apply coupons and discount codes to encourage conversions.
Depending on how you present your offer, you can also give the illusion of savings. Here’s how HostGator designs its pricing table for its web hosting packages.
Notice the “Now 60% off!” language as well as the “We Recommend” badge. Despite the company’s recommendation of the most expensive option, they alleviate the pain point by offering a discount.
Be sure to test your CTA and the surrounding copy so that prospects will be more likely to say “yes.”
Improve email and website engagement
The power of segmented email lists is far greater than one big list. Why? Your list of subscribers is made up of different people at different stages of the sales pipeline.
Some of them are just learning about your brand, but they are aware of the desire to buy something you sell.
At the bottom, though, they’re ready to take action. Those differences should be reflected in the types of emails you send.
Try segmenting your email list according to the information you have about each person on it.
Moreover, your activities need not be confined to funnel issues. It might be helpful to create a list for current customers you wish to return or those who are disengaged you wish to bring back on board.
After you’ve segmented your list, create e-mail sequences for each category. Make sure you strategically lead leads where you want them to go, whether it’s educating them with informational content or offering them a coupon for their next purchase.
Be sure to follow the same process when writing and designing your website.
An effective relationship building campaign can be very effective in converting visitors. Ensure your website has an inviting atmosphere with casual language, lots of visuals, and promises you can keep.
Instead of trying to sell your business, focus your copy on potential customers. So instead of telling prospects who you are, tell them what you can do for them.
Check out the Kajabi homepage:
Notice the headline: “Stop trading your time for money.”
It is customer-focused from start to finish. The same is true for the body copy beneath the headline.
Then we see, in the CTA, an obvious benefit: “Try Kajabi Free.”. It’s obvious and simple.
Copy like this helps build relationships and trust because it makes the visitor feel as if you care about his or her success, the resolution of a problem, or the acquisition of some desirable item.
The Importance of Refining Your Customer Acquisition Strategy
The above tips and techniques will help you improve customer acquisition, but what’s the ultimate goal? There isn’t one.
You must continually improve your customer acquisition process, unless you intend to shut down or sell your business. Only then can your business grow effectively.
First, you start with automation. You’ll start off ahead of the game if you can attract more people without having to exert any further effort.
Using a lead magnet, getting active on social media, sending out emails, and experimenting with different CTAs is completely doable without any assistance. The manual route, however, leaves plenty to be desired.
A number of tools, such as Crazy Egg, Google Analytics, HotJar, and VWO Testing, can assist you in making strategic decisions, then testing those decisions over and over again. Running one A/B test for a landing page, for instance, is great. Running ten A/B tests is much better.
Using the collected data, begin A/B testing. Work on perfecting every aspect of your sales and landing pages by finding out what your audience likes best.
Even the smallest changes can make a difference in your conversion rate. Don’t let an opportunity like that pass you by.
After you get used to testing and implementing, it’ll become second nature. You’ll become adept at making decisions based on actual data rather than merely emotions.
Consumer acquisition refers to the process of convincing consumers to purchase a product or service. Sounds easy, right?
Not so fast. In order to convince website visitors to actually make a purchase, a sound strategy is needed. Consider all the websites you visited yesterday. Did you buy something from all of them? Or even from one of them?
It is important to know how customer acquisition works in order to build a stable business. Start by deciding on your customer acquisition strategy, estimating your acquisition cost, identifying your target audience, and building landing pages so you can optimize them.
Don’t forget to test. Testing your strategy further helps you refine it.
Additionally, you will increase success in customer acquisition by improving engagement through emails and your website. Getting customers to say, “Yes,” is all about refining the process.
Increase Your Outreach With Damex Digital!
As with all things, learning Customer Acquisition strategies and using them to their fullest takes time. Precious time which you may not have due to other matters regarding your business, family or maybe you wish to use that time to produce more content, whatever the reason maybe.
The shortage of time has resulted in most people neglecting or completely abandoning the idea of developing a customer acquisition strategy and optimizing their content based on that strategy. The mistake they make is to think that they will attract customers as long as they put out their product in the market. They expect the customers to come to the.
That’s a huge mistake. Most people who do this either do not have a good sense of business or are just starting their business as such do not have the know-how’s.
Therefore, if you lack the time to develop a customer acquisition strategy from the ground up, by yourself, you should hire professionals to do it for you! Damex Digital is a professional digital marketing agency based in Smithers, Canada providing comprehensive solutions to all your digital marketing problems— including helping you out to develop customer acquisition strategies.
With us you get highly-skilled, professional customer acquisition strategy developers managing all aspects of your content roadmap and optimization. Leave the SEO and content optimization to us, while you take care of other matters pertaining to your business.
Get higher ROI, boost your conversion rates and increase your revenue with professional Customer Acquisition and Digital Marketing services by Damex Digital!