What is Customer Acquisition & Its Strategy?

Customer acquisition strategy

Customer acquisition isn’t merely about casting a wide net; it’s an intricate dance of understanding, engagement, and value proposition, whereas,  a customer acquisition strategy is a tool that helps brands acquire new customers and increase their brand awareness. It’s important because it has a significant impact on the growth of your business. 

If your company has been in business for more than a year, you know that growth is an important part of any healthy brand. If your business is small, growth can be vital to its survival. 

One of the best things about implementing a customer acquisition strategy is that it gives you more exposure as a brand. You can start reaching out to potential customers who were previously unaware of you or your products and services.

In this article, we will reveal the essence of customer acquisition and the blueprint for crafting an effective customer acquisition strategy that resonates, captivates, and ultimately wins the hearts and loyalty of your audience.

What is Customer Acquisition?

What is Customer Acquisition?

 

Customer acquisition refers to the process of gaining new customers or clients for a business. It involves various marketing and sales strategies aimed at attracting customers or companies who haven’t previously purchased from a specific brand or used its services. The goal is to convert these prospects into paying customers.

This process encompasses a range of activities, from identifying potential customers to engaging them through marketing campaigns, sales efforts, and other initiatives. It often involves understanding customer needs, creating targeted messages or offers, and guiding individuals through the sales funnel, ultimately leading them to make a purchase or commit to a service.

Customer acquisition is a vital aspect of business growth. The purpose of customer acquisition is to expand the customer base can drive revenue, increase market share, and establish a more robust brand presence in the marketplace.

4 Stages to Navigate the Customer Acquisition Funnel

 

Customer Acquisition Funnel

The customer acquisition funnel is often referred to as the sales or marketing funnel. It outlines the journey potential customers take from initial awareness of a product or service to becoming loyal, repeat customers. It’s divided into several key stages:

1. Awareness

This initial stage is about creating brand awareness and capturing the attention of potential customers. It involves increasing visibility through marketing efforts across various channels, such as social media, advertising, content marketing, and public relations.

Objective: To make the target audience aware of the brand’s existence, products, or services, and to generate interest.

2. Consideration

In this phase, prospects start to actively consider the brand’s offerings. They explore and evaluate options, researching and comparing products or services.

Objective: To provide valuable information, establish credibility, and persuade potential customers that the brand’s solution is the best fit for their needs.

3. Conversion

This stage marks the point where a prospect turns into a customer by making a purchase or taking a desired action, such as signing up for a service, making a transaction, or completing a form.

Objective: To seal the deal by providing an easy, seamless buying experience and reinforcing the value proposition to encourage conversion.

4. Retention

Once a customer is acquired, this phase focuses on nurturing the relationship to encourage loyalty and repeat business. It involves delivering exceptional customer service, personalized communication, and ongoing engagement.

Objective: To foster long-term relationships, encourage customer loyalty, and drive repeat purchases, leading to customer advocacy and potentially turning customers into brand ambassadors.

10 Most Popular Customer Acquisition Tools

Customer Acquisition tools

Tools are essential for customer acquisition in businesses. They make the processes easier to provide valuable insights into consumer behavior, optimize marketing efforts, and offer scalability. These tools efficiently acquire new customers. Also, contribute to understanding the target audience, refining strategies, staying competitive, and fostering long-term customer relationships, driving growth and sustainability in a dynamic market.

1. HubSpot Sales Hub

It is a comprehensive CRM platform offering tools for sales automation, email tracking, pipeline management, and analytics. It helps businesses streamline their sales processes, track interactions with prospects, and manage customer relationships effectively.

2. Content Square

It is an analytics and optimization platform that provides insights into user behavior on websites and apps. It offers data visualization, heatmaps, and behavioral analysis to help businesses understand user interactions, optimize content, and improve conversion rates.

3. Google Analytics

Google Analytics is a widely used web analytics service that tracks website traffic, user behavior, and other crucial metrics. It offers insights into audience demographics, acquisition channels, and user engagement, aiding businesses in making data-driven decisions to enhance their online presence.

4. Drift

It is a conversational marketing platform that facilitates real-time messaging, chatbots, and personalized interactions with website visitors. It helps in engaging prospects, qualifying leads, and providing immediate assistance, thereby improving customer experience and conversion rates.

5. ReferralCandy

ReferralCandy is a referral marketing platform that incentivizes customers to refer friends or contacts to a business. It automates referral programs, tracks referrals, and rewards customers, leveraging word-of-mouth marketing to acquire new customers.

6. Unbounce

It is a landing page builder that enables marketers to create and optimize landing pages without coding skills. It offers A/B testing, customizable templates, and tools to improve conversions, making it easier to drive traffic and capture leads.

7. GetResponse

GetResponse is an all-in-one marketing platform that includes email marketing, automation, landing page creation, and webinar hosting. It helps businesses build and manage customer relationships through various marketing channels.

8. Outgrow

It is an interactive marketing platform that allows businesses to create quizzes, calculators, assessments, and other engaging content to generate leads. It helps in capturing audience attention and gathering valuable data for lead qualification.

9. Mailchimp

Mailchimp is a popular email marketing platform offering tools for designing, sending, and analyzing email campaigns. It helps businesses reach and engage their audience through personalized emails and automation.

10. Wunderkind

Wunderkind (formerly BounceX) is an AI-powered marketing platform focused on behavioral targeting and personalization. It assists in delivering tailored messages and experiences to website visitors, increasing engagement and conversions.

How to Measure Customer Acquisition?

Measuring customer acquisition involves tracking various metrics and analyzing data throughout the customer journey. Here are steps to measure customer acquisition effectively:

1. Define Key Metrics

Identify specific metrics aligned with your business goals. These may include:

  • Number of New Customers: The total count of new customers acquired in a given period.
  • Cost Per Acquisition (CPA): The average cost incurred to acquire a new customer.
  • Conversion Rate: The percentage of prospects who become paying customers.
  • Channel-Specific Metrics: Track metrics like click-through rates, conversion rates, or engagement metrics for each acquisition channel (e.g., social media, email, paid ads).

2. Set Up Tracking Systems

Implement tools like Google Analytics, CRM software, or marketing automation platforms to track customer acquisition metrics. Ensure these systems are properly configured to collect relevant data.

3. Attribution Analysis

It is crucial to understand which marketing channels or touchpoints contribute most to customer acquisition. You can use attribution models to attribute conversions to specific interactions or channels along the customer journey.

4. Calculate Customer Acquisition Cost (CAC)

Divide the total costs incurred on sales and marketing by the number of new customers acquired in a specific period to determine the cost per acquisition.

5. Lifetime Value (LTV)

You can measure the value a customer brings over their entire relationship with your business. Compare this against CAC to understand the profitability of acquiring customers.

6. Monitor Cohort Analysis

To measure customer acquisition, you can track the behavior and performance of groups of customers acquired during the same period.  It analyzes their engagement, retention rates, and purchasing patterns to understand the effectiveness of acquisition efforts.

7. Refinement and Testing

Continuously refine strategies based on data analysis. Test different acquisition channels, messaging, or campaigns to optimize performance.

8. Customer Feedback

Gather feedback from new customers about their acquisition experience. Use surveys or feedback forms to understand their journey, pain points, and satisfaction levels.

9. Regular Reporting

Create regular reports summarizing key customer acquisition metrics. This helps in evaluating performance, identifying trends, and making data-driven decisions to enhance acquisition strategies.

What is a Customer Acquisition Strategy?

Customer acquisition strategy is a formula that you can use to achieve your e-commerce goals. It’s not a magic bullet, but it will give you the tools to understand how to get more customers for your e-commerce business.

For new businesses or even those that have been around for a few years and are looking to build a sustainable business. There is no doubt that finding ways to acquire new customers quickly and cheaply is the key to survival. To do that, you need an effective customer acquisition strategy eCommerce.

A good customer acquisition strategy is constantly evolving. It’s based on data that can help you better understand your customers and potential customers, from their age and gender to how they like to spend their money.

Customer acquisition is a critical part of your customer acquisition strategy. Its intention is to drive customers to your website, and from there, you can use inbound marketing to close the sale.

Four key factors of Customer Acquisition Strategy (CAS) can give your business a competitive edge in the market.

Four key factors of Customer Acquisition Strategy (

  1. Retention 
  2. Cross-sells and Upsells 
  3. Frequency 
  4. External Marketing and Sales

1. Retention – Retaining existing customers is a critical part of any CAS. This can be done by ensuring that you are meeting your customers’ needs. Providing excellent service will not only ensure repeat purchases but will also encourage recommendations and referrals.

2. Cross-sells and Upsells – Customers who have made more than one purchase from your store are more likely to spend more on their next visit than those who have only made a single purchase. 

You can encourage cross-selling by offering products that complement the initial purchase; or up-selling by offering higher-end or luxury versions of the product purchased.

3. Frequency – You should aim to make your store as accessible as possible for your customers and increase the frequency with which they visit it. 

This can be done by providing high-quality content that is interesting, relevant, and valuable to them, as well as direct communication with your customers to inform them about new products or services.

4. External marketing and sales – External marketing comprises all forms of marketing outside of your store – including public relations, social media, and targeted campaigns. By carrying out these activities, you will gain visibility and recognition in your market and ensure maximum impact on customers’ perception of how your brand stands out from the rest.

8 Best Customer Acquisition Strategies 

The customer acquisition strategy is the vehicle by which your business acquires new customers and grows. At any stage of your company, you should have a clear understanding of how you are bringing in new customers and growing your business.

There are many key factors for developing a customer acquisition strategy for your business. Let’s take a look at the 9 best customer acquisition strategies (CAS). 

  1. Identify Target Audience
  2. Utilize the Suitable Acquisition Channel
  3. Create and Promote Video Content
  4. Offer Free Trial 
  5. Focus on Creating Quality Content
  6. Focus on SEO
  7. Run an Affiliate Program
  8. Optimize Website for Better Experience

1. Identify Target Audience

Figure out who are your customers. Make a list of their characteristics and get to know what they like and dislike about your brand. Find out what needs your customers have and how can you fulfill them. This information is crucial as it will help you create not only a great product but also a great company culture. 

We have to make sure that we have the right target audience before we start figuring out what acquisition channels to utilize.

  • Identifying who you are targeting in your marketing and sales efforts will be more effective and can lead to better gains in growth in your business.
  • To figure out who you’re trying to sell to, first decide what you’re selling and try to picture your ideal customer or client. 

2. Utilize the Suitable Acquisition Channel

There are multiple channels out there that you can tap into, but some are more suitable for your business than others. The correct key to a suitable acquisition channel is understanding. You need to perceive what your options are, how they relate to each other, and which ones will give you the absolute best outcomes.

  • Online is a fantastic way to acquire customers at an economical price. If you are searching for an inexpensive, easy manner to acquire new customers, the internet is a fantastic place to start.
  • Online can be a lot more than simply a place to promote your business products and services. It’s also an excellent option for promoting brand awareness, as well as building up a household name.

3. Create and Promote Video Content

When it comes to lead generation and customer acquisition, video content has been proven to deliver results. For example, a survey by Brightcove found that 74% of B2B marketers are using video as a content marketing tactic. As you can see from the example below, we’ve had great success with our own campaigns.

  • Video content is one of the most popular things people share and watch today. According to a study by Cisco, by 2017, people will be consuming over 80% of their content through video.
  • In today’s digital marketing world, creating and promoting video content is one of the most important ways to reach your target audience.
  • Using video content is not only a solid B2C but also among very effective B2B marketing strategies a business can employ. 

4. Offer Free Trial 

Attracting new customers is not an easy job. It is always useful to have multiple options to acquire new customers and convert them into loyal customers. 

  • A free trial offer (just like this)is a great way to compel your potential customers to experience your product. 
  • It helps them know more about your product and also acts as a way to generate leads for your brand. Even if they don’t become a customer after their trial period, they will remember your brand because they’ve experienced it before. 
  • It’s always good to let them use the product first before asking them to purchase it. After all, that is what a free trial is all about.

5. Focus on Creating Quality Content

We all love to share content on social media, but how do we really know if it’s helping our business? Or that what we’re sharing is working or not?

Focus on Creating Quality Content

Creating an online presence for your business can be a very difficult task, especially if you don’t know what you’re doing. When it comes to creating quality content for your website I want to show you how it’s done. This can be done by just following these simple steps:

  1. Go to the Library and find some books on writing.
  2. Go to a place where there is internet access and find writing platforms like wikihow.com etc.
  3. Write some articles try not to make them too long or hard to readjust something that gets people interested in reading more so they stay longer on your website.
  4. Once you’ve finished writing your articles go to other websites and look up how you can get links back to your website.
  5. Once you have time to create a blog try not to rush it and make sure the quality of the content is high.
  6. Your last step is figuring out what kind of keyword you ranking for so you can target those keywords with the articles you wrote.

6. Focus on SEO

SEO stands for search engine optimization. SEO involves creating a content strategy that helps your site show up at the top of search engine results like Google, Bing, and Yahoo.

Businesses need to focus on SEO to make sure they are creating a good customer acquisition strategy.

These days, people go online and search for products they would like to buy. There are hundreds of sites that offer the same products but consumers usually choose the ones that show first in their search results.

How SEO can help you? 

  1. It helps you get more targeted visitors so you know that they are there looking for what you have to offer.
  2. It can help you in getting your website to the 1st page of the search engine results. 

7. Run an Affiliate Program

The affiliate program is one of the traditional methods for online marketing, helping companies attract new business by placing banners, buttons, and links on their websites. This way businesses can gain new customers, while users can make money by promoting products and making sales.

  • There is no product, service, or even a blog post for which no one would need marketing, but if you’re new in the game of creating a profitable business and aren’t having much success in attracting quality customers, you definitely will need to find some other channels.
  • Once you decide to move forward with setting up an affiliate program for your website, blog, or any other product or service, you will be immediately given the opportunity to increase your sales, while at the same time building a strong customer base.

8. Optimize the Website for a Better Experience

No matter what business you’re in, your website needs to be optimized. You may think that it’s working just fine, but if you want to improve your business, then you need to put in the effort to improve your website. When people are looking around your site, they can tell if you’ve taken the time to optimize. 

Here are some of the benefits of optimizing your site:

  1. It is way easier for people to find what they are looking for on your site.
  2. Optimized content is way easier for both the search engines and people to read through.
  3. You will have a better time using social media services like Facebook, Twitter, and Google+.
  4. Your bounce rate will go down, meaning more people will stick around and check out more than just one page on your site.
  5. No more confusion from duplicated content.

How Does a Smart Customer Acquisition Process Help Grow Faster?

The smart customer acquisition process plays a key role in the sustainable and long-term success of any e-commerce business, starting with the right acquisition strategy, through to effective use of resources and tools, and ending with clear KPIs (Key Performance Indicators) that allow you to monitor the results of your work.

Smart Customer Acquisition Process

A smart customer acquisition process gives you confidence in choosing the right channels and investing according to your particular business model.

  1. Display Advertising
  2. Social Media Marketing
  3. Search Marketing
  4. Content Marketing

1. Display Advertising 

Display advertising helps your brand grow by reaching the people most likely to purchase a product or service based on their online behavior. It’s no surprise that display has become the preferred brand-building investment across all industries. 

You have to advertise your products and services on the Internet because it is one of the easiest ways to reach new customers.

2. Social Media Marketing

Social Media Marketing is the new sensation in marketing. Everyone owns a smartphone and people are using it to surf the internet and search for things that they want, need, or any information. 

The Internet has changed the way businesses operate, and it should be considered in your marketing plan. The internet has changed the way companies do business. It should be considered as a part of your marketing plan.

  • Social media marketing is one of the best ways to connect directly with your customers and prospects. It’s an amazing tool that allows you to focus on creating content and engaging with your ideal customers.
  • If you are really keen on using the power of social media for your business or for your organization, there are several things that you should be doing to ensure success.

3. Search Marketing

Search marketing is one of the best customer acquisition strategies for startups. It is crucial in order to build up a customer base. The more customers you have the easier it will be to grow with your startup. 

  • Customers from search engines are willing to invest more in your niche. If you do not make an active step in reaching out to these people, they might never reach your products or services. 
  • Potential customers are not only the people who type directly into the search bar but also those who use “related searches” and see what kind of products and services are good

4. Content Marketing

Content marketing involves using online outlets such as blogs and social media platforms to give potential customers insight into your business and your products. This can be supplemented by offering subscriber-only discounts, competitions, and other incentives to make sure that you keep those visitors coming back for more.

  • As the digital era is growing, more companies and so many small businesses are increasing their content marketing activities to reach their potential customer faster. 
  • Content marketing is your next customer acquisition process. It’s an innovative and effective method of making sure that you reach the right people with the right messages to persuade them that your brand is one that they need to know about.

How to Enhance Your Customer Acquisition Strategy?

Any company that desires to succeed in today’s business world has a customer acquisition strategy. However, the actual tactics used tend to vary from industry to industry. 

Enhance Your Customer Acquisition Strategy

For example, product or service providers can utilize free trials and price promotions while service businesses often rely on building personal relationships with potential clients. 

Regardless, acquiring new customers involves a combination of creativity, ingenuity, strategy, and hard work; some things are just not as easy as they seem. 

Let’s take a look at some of the effective ways to enhance customer acquisition strategy. 

  1. Flexibility 
  2. Sustainability 
  3. Target Market 
  4. Diversify Approach 

1. Flexibility 

There is no doubt that customers are the lifeblood of your business and it’s critical to have a strategy to acquire them. While there are many strategies for customer acquisition (SEO, Display, Social, SEM) one of the most overlooked and effective is flexibility. 

The flexibility to change your marketing message and trick or treat various channels. You should plan on using several channels, but you don’t know which ones will give you the best return. 

You want to reach as many prospects as possible without burning cash. If you are stuck on one channel and it’s not working you are wasting time, energy, and money.

The basic framework is this:

  • Figure out what you want to do with your marketing
  • Create a marketing message that gets people’s attention
  • Create an ad that delivers your message
  • Run an ad on a channel that delivers the best ROI
  • Monitor and focus on the most successful channels

2. Sustainability 

When businesses get started, the focus is often narrowed to revenue and marketing. While successfully acquiring new customers is important, it’s equally crucial to consider sustainability when doing so. The expansion of most businesses relies on the acquisition of new customers through marketing.

3. Target Market 

Social media has flooded the market with individuals and companies fighting to gain more market share. But why is it important to target a specific market of new customers?

The main focus of any company should be on how to reach its desired demographic as quickly as possible. I will use myself as an example. I am a student at university and I prefer to shop with small businesses in my local community. 

This demographic is a huge target market that has not been targeted by many small companies or startups.

When searching for your target market you must ask yourself who are you trying to reach? Literally, think about it.

4. Diversify approach 

Once you’ve brainstormed a solid list of customer acquisition strategy examples, the next step is to decide which ones will work for your business. Generally, you’ll need to mix and match different types of customer acquisition strategies to break through the noise and stand out from the crowd.

How an AI chatbot can help acquire more customers?

Chatbots are the new technological frontier in customer service and they are already starting to be used by companies to meet more consumer demand.

Similar to how companies have used multiple channels (email, social media, and telephone) to communicate with their customers, chatbots give companies another way to interact with their consumers.

What makes REVE Chat so exciting is that it helps companies talk directly with their customers. This chatbot can quickly help acquire new customers, resolve issues, and upsell higher-margin items. With these added features, REVE Chat can create more lifetime value for e-commerce stores and brands. Sign Up now and enjoy a 14-day free trial.

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Juwel Rana
Author’s Bio

Juwel is a Sr. Content Writer at REVE Chat. He specializes in writing about customer service and customer engagement. He is passionate about helping businesses create a better customer experience.

He strongly believes that businesses will be able to understand their customers better and ultimately create more meaningful relationships with them.

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