Customer Acquisition: What it is and Why it Matters

If you have a business or thinking of starting one, you should be aware of the importance of customer acquisition. Customer acquisition is basically convincing people to shop from your business – in other words, having sustainable customers in your business. It is not rocket science to understand that you need to have customers to have a successful business that makes a profit. There are many ways of getting customers, and a business needs to be smart during this critical customer acquisition process to actually make a profit and have a brand that people trust.

Customer acquisition is significant for any given business. You might be just starting your business, and you may need to be acknowledged by your target audience to get your first order. This happens through customer acquisition. You may also have a business that is running for years, but people start not to shop from it – you once again need to apply the customer acquisition process. There are many methods and tools you can use for customer acquisition, and you can find a good way for your business.

What is Customer Acquisition?

The very first step of applying customer acquisition for your business would have a detailed understanding of what customer acquisition is. Customer acquisition is the name of the procedure used to attract new customers or clients to your business in a sustainable and affordable fashion. Through customer acquisition, you would be convincing customers to shop from your business to have the goods or services you provide. It might sound very much like marketing, but customer acquisition is something completely different from marketing. Marketing can be used for many reasons, but customer acquisition especially focuses on finding possible customers that would be interested in your product or service and those who would actually buy them.

Customer Acquisition
Customer Acquisition

Why Customer Acquisition is Important?

Another important detail to have a successful customer acquisition process is to internalize its importance for your business. Regardless of what state your business is, customer acquisition is very important for the following reasons:

  • Your business needs to have loyal customers that buy the goods and/or services from your business.
  • You need to create brand awareness; people need to know your business and the goods and services you offer.
  • Customers you acquired, and the possible customers for your customer acquisition process need to have trust in your business. People would not shop from businesses that they do not have trust in.
  • The customer acquisition process takes the consideration pool into account. Finding the correct consideration pool is crucial for your business’s success.
  • Customer acquisition is the best way of making a profit in most cases.
  • The chances of you improving your business through customer acquisition are more than in any given other method.
  • Your customer base in your business will be dependent on the process of customer acquisition.
  • The data shows that most of the income of any given business comes from a small percentage of acquired customers through customer acquisition.

The list can go like this. As you can see, there are many reasons why customer acquisition is a crucial process to promote and improve your business. Every business owner must be aware of the customer acquisition process and should know every single detail of the customer acquisition process to choose the best ones for their business.

What is customer acquisition cost?

If you are involved in the business world or in any sort of economic process, you should know that nothing you do in a business is free – there is always a cost for everything. Of course, customer acquisition is not free. What is meant here is not solely based on crazy advertisement costs. As mentioned many times earlier, customer acquisition is very important, but if you do it in a way that the cost of it is more than the profit, it would not be very helpful for your business. The goal of your business should always be growth in the long run, and you should act wisely in the customer acquisition process.

What is customer acquisition cost?
What is customer acquisition cost?

When cost is involved, there is always a certain amount of math. Customer acquisition cost is calculated by dividing the number of customers by money spent on sales and marketing. This means that you cannot just overlook the money you spend on during the customer acquisition process. The aim of a successful customer acquisition process is to maximizing the number of customers and minimizing the cost. In other words, your business’s goal should be to have the minimum amount of customer acquisition cost.

Key points of customer acquisition cost

Of course, it is not always the case where customer acquisition cost being minimum creates the optimal results. The customer acquisition cost of your business might be very low because you spent so little on it. However, it does not mean that you will make a profit out of it. You need to choose the wisest option where you pay the least where you attract the most customers. This one would increase the profit you made. You should also be careful of the following costs while thinking about customer acquisition cost:

  • The business’ marketing team’s costs
  • The money you paid to the agency
  • Retainer costs
  • Sales teams’ salaries

How to use customer acquisition process in your business?

Not all businesses are the same, so not all businesses can use the same methods for customer acquisition. Your business is unique; there is no other business that does exactly what you do. So, you should be knowledgeable about the customer acquisition methods to be able to choose the best option for your business. There are many customer acquisition methods, and you need to be wise to make a profit out of customer acquisition.

First things first, you need to be expertise in your business’ nature. What kind of business do you have? What are the things that your customers and target audience might be your possible new customers? Is the method you chose would bring you loyal customers that would stick with you for a long time? You need to know those aspects in detail about your business so that you can choose the best option for it.

Customer Acquisition Strategies

Now that you know about the details you need to take into consideration while choosing the customer acquisition method let’s take a look at what those methods are. You might find yourself in a situation where you think there are multiple customer acquisition methods suitable for your business. You can choose several if you think that it would be the best option for your business.

Find your Target Audience

The most important step of your customer acquisition journey would be getting to know your target audience. In the most basic terms, a target audience means who you are targeting your products or services for. If you are running a high technology service digital business, your target audience would not be a bunch of 60 year-olds. Once you get to know your target audience very well, you can use the methods to be in touch with them in the best way possible.

There are many algorithms present for you to encounter with your target audience. This way, you can find people who can be easily persuaded to shop from your digital business and become loyal and sustainable customers. The process of customer acquisition involves finding customers that would stick with your digital business for a long time, and not every person that sees your advertisement would be available for this position. So, you need to be wise while choosing your target audience.

Social Media

The power of social media cannot be overlooked by any means in today’s world. Everybody is somehow connected with social media. Even though a person does not use any kind of social media platform, the chances of them not knowing someone who uses it are close to zero. In the digital age, one of the best ways for customer acquisition is through social media. Up to this point, social media platforms are also aware of their own power, and they have some methods to utilize customer acquisition for digital business owners.

How to use social media as a customer acquisition tool?

One of the most convenient ways of using social media as a customer acquisition tool is simply by giving advertisements on social media. The greatest utilizer here is that your digital business would be offered to those who are interested in it. Big social media platforms such as Instagram and Facebook have great advertisement algorithms. Through social media, you can easily connect with people who would be interested in your products.

It is also crucial to use the right methods of advertising on social media platforms. One of the best ways of using social media as a customer acquisition method is by influencers. Influencers have thousands – sometimes millions – of the audience that loves them. People tend to be influenced by those who they like and trust. Through social media influencers, you can contribute brand trust to your digital business. Are there any better ways of acquisition customers rather than someone offering it to those who already love and trust them? Besides, you can reach more people than you want. Of course, you would want to target people who are more likely to buy your products. However, there are always outliers who do not seem that are likely to buy your products but buys them regardless. Influencers are great tools to connect with those people as well. Do not underestimate the power of social media by any means.

Referrals

Another great way for customer acquisition is through referral links. Not every influencer would be willing to promote your product. Besides, it can be pretty costly. You can offer referral programs where you give commission to people who promote your products. They can create referral links, and as more people buy from those links, both the people who promote your digital business and you will, of course, make a profit out of those new customers as a digital business.

Additionally, referrals are a great way to build trust in your products. Referral programs can be a great tool, especially if your digital business is new. People do not like to take risks, so someone else talking about the products of your digital business in a good way would definitely help a lot more than you think. This way, you can create brand awareness and start to build a new customer base that trusts and shops from you, which is the main idea behind customer acquisition.

Search Engine Optimization (SEO) Website and Customer Acquisition

Creating a website with search engine optimization is another great tool for the customer acquisition process. In the most basic terms, a search engine optimization website is creating a website full of contents that makes it easier and more available for people who are looking for the product or service you are offering to them. If you ever used a search engine, you should know that millions of results come to you in milliseconds. But how people pick from those results?

Search Engine Optimization (SEO) Website and Customer Acquisition
Search Engine Optimization (SEO) Website and Customer Acquisition

As you can guess, no one looks at every single result that comes up in a search engine. Instead, they are looking for the first several links provided to them by the search engine, or they are just looking for the heading. With the search engine optimization methods, your content and website can be present at the top of the list, which means that more people will have the opportunity to click on your website. Clicking to your digital business’ website would be the very first step of shopping from it, so you would not want to miss potential customers.

Another great thing about search engine optimization is that you will be welcoming people that are looking for the exact product or service you are selling. It can be very competitive out there in the digital business world, but you can be several steps ahead of others with search engine optimization tools. What matters here is to work smarter than just working harder.

Search Engine Optimization Tips

Search engine optimization is a whole topic on its own, but there are some basic things that may help you a lot for your digital business. It is very important to understand the value of search engine optimization. You can make search engine optimization a great tool for your customer acquisition journey, and it can provide you a lot of things. Here are some basic tips on search engine optimization that might help you for customer acquisition for your digital business:

  • Include keywords, especially on your heading. Try to include the keywords that people are most likely to search on search engines. For example, if your business is about jewelry, you must add the word “jewelry” on your headings.
  • Add “alt title.” Alt title is the name of a small description that takes place in pictures. If you post a picture on your website and it does not show on anyone’s device for whatever reason, the alt title would help you a lot.
  • Add transcription or closed captions for your images, videos, and auditory content. Those captions would help a lot for those who have hearing or a visual impairment, in addition to those who cannot see those content for any reason.

Content Marketing

Another great method for customer acquisition is through content marketing. Digital businesses best promoted in the digital world, this is for sure. You can create your business’ own Instagram or YouTube account for sharing content. It is a great way to communicate with other people that might want to purchase from your digital business. The content you create should be somehow relevant to what you sell, but it does not have to be completely dedicated to your products.

You can include how-to videos, tips about your products, and many other things in your content. Having followers on social media through content can be very easy if you consistently post and use the right methods, but it requires time and effort. If you are willing to put in the effort, you would definitely get the results that you have been looking for. Besides, content marketing is a great tool to constantly be in touch with people that can be your customers. Make sure that you are connecting them through likes, comments, and direct messages.

Add-value Marketing

You might be unfamiliar with add-value marketing since it is a relatively new marketing technique. However, it is definitely working and worth trying on your digital business. Add-value marketing is offering more than just your products and services to your customers and possible customers. Think about this, in physical businesses such as stores, and there is more than just the product. You are taking the environment and how employers treat you into account. Many people think that it is not possible to optimize your digital business in such a way, but it is not the case.

You can still offer more than you sell on your digital business. In fact, it is one of the best ways of customer acquisition. Why offer only your products while you can attract new customers to your digital business through add-value marketing?

How to make add-value marketing for customer acquisition?

There are many ways to include add-value marketing in your customer acquisition journey. Since you got the main theme, you can get inspired by the ideas about add-value marketing. The most common way of add-value marketing is adding a content section to your digital business. You can post blogs, pictures, and videos. This way, people will not only come to your digital business website for products, but they can come to read and watch stuff. It might sound irrelevant to you, but it is not.

Even though people are coming to your website to read posts or watch videos, they are still coming to your website! Increasing the clicking traffic would definitely help you. Besides, people committing to your digital business by any means is a good sign. People love to behave in line with their other actions. In other words, a person frequently visiting your content in your digital business would be much more likely to shop from your website—a win-win situation for your digital business.

E-mail Marketing

E-mail marketing might sound a little bit old-fashioned and cheesy to you, but you should never underestimate the value of e-mail marketing. In today’s world, most people check their e-mails on a daily basis. This gives your digital business a great advantage. You can take people’s e-mail information and inform them about discounts, campaigns, and special offers that your digital business has for them.

E-mail Marketing
E-mail Marketing

Keeping in touch with your customers and possible customers is a great way of customer acquisition. Even though they were not planning to purchase from your store, a simple e-mail can remind them of your great products or services. Besides, as mentioned in the add-value marketing section, people love to continue to things that they show the smallest commitment to. Following an e-mail, a subscription is a small commitment but increases your chances of being a loyal customer of yours greatly.

Strategic Advertisement

Another method in customer acquisition is strategic advertisements. Different methods of advertisements were discussed earlier for customer acquisition, but there is this one point that should be considered in every single of them. The customer acquisition process greatly benefits from advertisement but spending thousands of dollars on an advertisement would not solve your business problems and bring hundreds of new customers. It is crucial to work smarter instead of harder in those terms.

You should choose the method or methods that fit your business best. Not all businesses are the same, and it is clear that not all customer acquisition methods would be helpful for every business. You should be knowledgeable about your products, your services, and your target audience. Optimizing the methods of customer acquisition is definitely up to you, and you would not want to decrease your chances of getting new customers. Do not ruin your chances of having new lovely customers!

Overall Look to Customer Acquisition

Now that you know many things about customer acquisition, it would be best to wrap things up to have a last clear idea about customer acquisition. Customer acquisition is getting new sustainable and loyal customers for your digital business. There are many ways for customer acquisition, and they all work differently for different businesses. It is crucial to get to know customer acquisition methods in detail to choose the right option for your business. Let’s take a look at key takeaways of customer acquisition:

  • Do not underestimate the significance of social media. Social media is a great tool to communicate and promote your business.
  • Use search engine optimization for the best interest of your business.
  • Try add-value marketing to offer more than just what you sell. Customers love to be cared for and valued by businesses.
  • Include content marketing in your advertisement strategies.
  • Get to know your target audience and work for what they would like the most.

Customer acquisition can change your digital business for the better with the new customers it can provide to you. You would never know how beneficial and helpful it would be for your business.

FAQ

How can I find the best customer acquisition method for my digital business?

To find the best customer acquisition technique for your digital business, you need to have a good understanding of the nature of your digital business and your target audience.

What are the customer acquisition techniques?

There are many customer acquisition techniques. Some of the most preferred customer acquisition techniques are social media, e-mail marketing, add-value marketing, search engine marketing, and referrals.

What is the customer acquisition cost?

Customer acquisition cost is the cost of customer acquisition divided by the total number of customers you acquired through customer acquisition. It gives you an insight about the success of the customer acquisition process.

What is the aim of customer acquisition?

Customer acquisition cost is the cost of customer acquisition divided by the total number of customers you acquired through customer acquisition. It gives you an insight about the success of the customer acquisition process.

Are marketing and customer acquisition the same thing?

Marketing is not the same thing as customer acquisition. Marketing can be used for customer acquisition, but the main aim is different.

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