Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers. The importance of customer acquisition varies according to the specific business situation of an organization. This process is specifically concerned with issues like acquiring customers at less cost, acquiring as many customers as possible, acquiring customers who are indigenous and business oriented, acquiring customers who utilize newer business channels etc. The whole process should concentrate on following considerations:
- Primarily it is important to determine and focus on psychology of customers, like how the customers feel and think and then selecting the product segment to be presented to them.
- Concentrating on how the customers are influenced by the surrounding environment like the business culture, technology, media etc.
- Analysis of customer behavior and tendency while buying specific range of product.
- Studying the customer’s limitation of knowledge processing power which influence the decision making power.
- Finally it’s very important to engage best strategies for effectively convincing new customers and improving marketing campaigns.
Customer acquisition techniques change with technological changes. There is always a need to optimize and upgrade the traditional ways of marketing channels available. Exploring new methods to entertain customers is important to remain in competition and have high acquisition rate.
It allows the business to:
- Cover the cost of its expenses, including the cost of labor.
- Increase its profits over time.
- Reinvest in its own growth.
- Show evidence of growth to partners, investors, influencers and other outside parties.
Acquiring a customer depends on how effectively the organization is able to build a comprehensive relationship with that customer. When suppliers have healthy relationship with customers, the revenue of the organization always increases as customers tend to buy more and more. There is possibility that a satisfied customer seek to buy special category of related products apart from the regular ones from that particular supplier. For instance if a satisfied and loyal customer has a home insurance policy from an insurance company then there are positive chances that he could also insure his property and car if he is fully satisfied with the services of that insurance company. This will definitely result in growth of business.
While acquiring, the nature of response provided to acquisition is the key aspect to create an impressive opinion in customer’s mindset. Hence, the suppliers should always have prompt, responsive and experienced executives to serve customers. For example, if a customer calls and asks about some critical features of any product and the executive fails to explain it or being non-responsive to most of his questions then the customer could probably divert his way to some other organization for better response which could definitely result in end of the deal and relationship with that customer.
Improving customer acquisition is the primary challenge which an organization faces. Hence it is important to identify critical approaches to enhance customer acquisition power. This includes acquiring more number of customers or more number of attractive customers at low cost. One of the best strategies to acquire new customers is performing promotional campaigns. These campaigns should be efficient and well targeted to customers. Encouragement of customer referrals can also attract new customers. It is always a cost-free advocacy by customers to provide referrals to supplier when they feel satisfied and encouraged and when they have a healthy relationship with customers. These referrals or customer’s reference of other customers act like a piece of cake for suppliers as there is no cost and struggle involved in this.
Identify the target customers
The first step in the customer acquisition process is to identify your target audience, the people who are most likely to purchase your products and services. Unless the product or service your business sells meets a universal need, the best way to promote your products and grow your business is by identifying one or two of the best market segments for your business.
Identify where your target audience is
To enhance your customer acquisition process, you need to know where to find your customers both online and offline. Once you identify the places your target audience frequents, you can then develop strategies to target them there. As an example, if your ideal audience frequents a particular social media site, you may want to consider advertising there.
If you’re unsure where your target audience spends time, consider polling your existing audience. You could also reach out to potential customers individually to learn more about them, their interests and what sites they spend the majority of their time on.
Start a blog
Blogging on your website is a highly effective customer acquisition method that allows you to discuss different topics, demonstrate how much you know about the industry and establish yourself as a source of authority. It also allows you to regularly engage your audience, providing them with a resource they can go to for information related to your niche. You could write for the blog yourself, task a member of your team with doing the writing or outsource to a freelancer.
Create video content
Video content is very popular online, which is why you should consider creating videos as part of your customer acquisition strategy. Create a mixture of educational and entertaining videos. Your educational videos should provide your target audience with valuable information about your industry, topics that are relevant to your industry and your products and services. Your other video content should focus on entertaining and engaging your target audience online.
Optimize your website for the search engines
Search marketing is also another important strategy that you should prioritize. Also referred to as search engine optimization (SEO), this strategy involves modifying your content to increase the likelihood that it will rank in the search engines. While this strategy takes longer to grow than some of the others, once you optimize your content, you can see a steady flow of clients into the business.
Build an email list
Email marketing is an effective way to maintain contact with customers as well as potential buyers who have expressed interest in your products and services. As you email your list, it’s important to monitor the behavior of your subscribers. For example, take note of the links that your subscribers are clicking on within your emails.
Also, pay attention to the emails that have the highest open rates or unsubscribe rates. This information can help you create better content that your audience is interested in, which can help you to increase customer acquisition and conversions.
Produce quality content frequently
Another effective customer acquisition strategy is to establish yourself as a trustworthy source of information in your industry or niche. One way you can accomplish this is by creating high-quality, useful content on a regular basis. Many companies use social media, blogs or even email newsletters to establish themselves as a reliable source of information and build trust for their brand.
Create gated content
Gated content is a different type of content marketing strategy that typically involves creating an in-depth and highly valuable piece of content that potential customers can access in exchange for personal information like their name and email address. Relevant, gated content is an important part of a customer acquisition strategy since it can help you grow your email list and generate more leads and, ultimately, sales.
Create a referral strategy
Referrals are a great way to increase the profitability of your business while keeping marketing costs low. For this reason, a referral program is a powerful method for acquiring new customers. The easiest way to encourage customers to refer your products and services to your family and friends is by offering some kind of incentive. Many businesses, for example, offer extra features or discounts to customers who successfully refer other people to their products and services.
Track your customer acquisition
Once you have different types of content in place, it’s important to monitor incoming leads to identify the acquisition channels for your new customers. Monitoring will make it possible for you to determine which channels are most effective for generating quality customers. It also helps you monitor word-of-mouth referrals and determine whether the feedback from customers is positive. This can guide your company decision-making to ensure any word-of-mouth referrals you receive are positive.