Customer acquisition is a process that entails various marketing methods aimed at bringing new customers. It helps convert leads, boost sales, and expand a business.
Why is customer acquisition important?
With the help of digital technologies, companies collect vast quantities of data about their prospects, both online, and offline and use different methods to obtain their attention. Brands meet the needs, wants, and expectations of people to win the interest and encourage them to become customers. As a result, businesses receive the love and trust of more people and get more loyal customers.
Companies use popular marketing channels such as social media, paid advertising, email marketing, referral programs, and SEO to obtain new people who will engage with their brand. They constantly use different marketing techniques to ensure the company’s growth, increase sales, and obtain profits. So let’s get to know the benefits of customer acquisition, they are as follows:
- increased sales;
- improve brand awareness;
- company’s growth;
- new investors, influencers, and partners involved;
- company empowered to systematically convert new customers;
- opportunity to expand business;
If you aim to grow your business, then customer acquisition is an essential step. Let’s review how to measure customer acquisition.
How to measure customer acquisition
You’ve probably heard about customer acquisition cost (CAC), a measure that defines how much a company needs to pay for bringing a new customer. This cost involves advertising, various events, marketing costs, bonuses, and commissions.
CAC is essential for your company since it allows you to calculate your ROI. Successful businesses always try to reduce this cost as it shows how healthy your sales, marketing, and customer service strategies are. Besides, reducing this value empowers your company to allocate resources efficiently and receive higher profit.
A marketing strategy that performs well doesn’t require big expenditures on advertising that often generate low-quality leads. This is because a company that provides people with valuable and informative blog posts can bring organic prospects. Additionally, your current customers can also help you in customer acquisition. If your clients are satisfied with your product or service, they will recommend your brand to their friends and colleagues.
Below you can find a formula to calculate CAC. Firstly, define the time frames that you’re evaluating for. Secondly, add together your total sales and marketing costs. Thirdly, divide the resulting amount by the number of the acquired customers during the specified time.
Now that you know how to calculate CAC, let’s proceed to the next step — developing a customer acquisition strategy.
How to develop your customer acquisition strategy
- Define your ideal customer
- Determine your goals
- Choose an appropriate acquisition channel
- Create a specific strategy for each channel
- Communicate with your audience
- Analyze and improve your strategy
Let’s dive into several steps if you want to acquire new customers.
- Define your ideal customer. To reach your target audience, it’s crucial to collect the personal information of your target groups. Give thought to creating your buyer persona to keep this information in order. Ask yourself questions that will help you know customers’ goals, problems, interests, etc.
- Determine your goals. Once you have your ideal customer profile, you can set your objectives. This will help you develop a customer acquisition plan and engage various marketing methods to achieve your main goal. Besides, define your revenue expectations to see whether your business meets them.
- Choose an appropriate acquisition channel. You can “meet” your new customers anywhere, on social media channels, or with the help of an organic search. Remember that you can find the most effective channels by using buyer personas. The first thing you can do is to find out where your personas spend their time and reach them using these channels. Secondly, run an experiment by developing a hypothesis about the most popular communication channels that bring the highest ROI. Once you measure their performance, you can decide where to run campaigns and how to allocate resources.
- Create a specific strategy for each channel. Pay attention to the content your customers interact with, their favorite social media channels, information your competitors post, etc. Keep in mind that there’s no point in getting to each channel since it will cost you a lot.
- Communicate with your audience. To improve the process of customer acquisition, you need to establish communication with clients. Surveys, interviews, social media, and blog posts are excellent forms of communication with your customers. With their help, you can find the gaps in the ways of winning new customers. Keep in touch with your clients to identify what they expect from you.
- Analyze and improve your strategy. Consider utilizing analytics to be aware of your company’s performance. Various factors can influence the customer acquisition process. So it’s essential to be aware of them. Analytics can help you find out where customers buy your products, where they live, how they know about your company, and even more.
With the right customer acquisition approach, you can engage high-value consumers who can be loyal to your brand and stimulate its growth. We’ve prepared the most effective techniques to help you in this process.
12 Customer Acquisition Techniques
- Video marketing
- Subscription forms
- Co-branded products
- Giveaways and contests
- Informative blog posts
- Influencer marketing
- Referral programs
- Optimized landing pages
- Paid ads
- Web push notifications
In today’s world, many great marketing methods help win new clients. So let’s walk you through the most valuable techniques which will attract new customers.
According to Wyzowl, 86% of people would like to see more videos from brands. Videos tend to bring many benefits to companies since they are visually appealing and encourage people to engage with the brand. Moreover, videos build trust, increase social shares, boost conversions and sales, influence buyer decisions, and even more.
For example, Wix provides their potential customers with design tutorials on creating a strip-based website.
To generate leads and legally collect subscribers’ personal information such as name and email address, brands often use subscription forms. They can be located on a website or blog and enable users to fill in the form with their personal information. By doing this, they can receive the brand's latest updates in newsletters. When subscribers agree to obtain emails from your company it means that they are interested in your products or service.
By registering with SendPulse, you have a great opportunity to create any type of subscription form for free. Besides, our service allows you to make multi-channel forms. They enable users to subscribe to your company by using email or messenger.
Below you can see a subscription form example designed with the SendPulse builder.
This process involves cooperation between two companies that aims at creating a product or a piece of content and promoting it through various marketing channels. It can be presented in the form of an article, video, new product, app, and more. Co-branding helps companies reach new audiences, generate leads, and boost brand recognition.
For instance, the partnership between Airbnb and Flipboard. As you know, Airbnb is a room-sharing app. Flipboard is an app that gathers content from different social platforms and blogs. These two companies cooperated to create a product called Trips. It enables Airbnb users to connect with hosts with the same interests. In this way, the two brands can reach new clients all around the world.
Giveaways and contests
To increase your social media presence, boost engagement metrics, consider conducting giveaways. By tailoring a great giveaway or contest, you have the opportunity to reach a wider audience and obtain new clients in the future. Use your leading social media platforms to conduct a giveaway and set the rules which include tags, comments, shares, and likes to make your brand more recognizable.
Let’s take a giveaway from Forever21, for example. The brand used Instagram for its contest. To win the brand’s items, users had to follow the rules mentioned in the post.
Informative blog posts
Content marketing is one of the easiest ways to obtain new customers. Although it can be a challenge to come up with high-quality articles, this allows your leads to make informed decisions. As a result, you’ll gain their trust and loyalty. Besides, valuable, engaging, interesting, and informative blog posts help drive conversions.
Let’s take SendPulse, for example. The service has a blog that contains articles on various relevant marketing topics. It allows customers to study a specific topic, find out more about this service and make a deliberate decision.
This type of marketing is growing faster even than digital ads. Influencers can help you quickly attract new buyers since a large percentage of people listen to recommendations on social networks. Besides, people start to engage when they see their opinion leaders in commercials, on a brand's website, etc. Once you choose the channel, decide on the influencers who can generate leads. Here you can find a step-by-step guide on how to create your influencer marketing strategy.
For example, the partnership of Puma with Selena Gomez. The singer often promotes the brand’s products on her Instagram account. With the help of this opinion leader’s multimillion audience, Puma can easily bring new clients.
This is one of the most critical techniques that helps in acquiring new customers. The strategy entails optimizing the website to rank better in the search results. Since users tend to visit the top five websites on the search engine results page, it’s essential to optimize your pages both for users and search robots.
SEO helps your company obtain organic traffic and acquire new customers. Use industry-related keywords, backlinks from authority websites and ensure that your web page is mobile-friendly. Read our article to find out the main principles of a great SEO strategy and useful SEO tools.
Running a referral program is the basics of any customer acquisition strategy. Offer your current customers discounts, or special reward to encourage them to refer your products to their family, friends, or colleagues.
Let’s take GREATS, for example. This brand designs sneakers and provides their customers with a special discount if they bring their friends.
Optimized landing pages
To obtain more customers, make sure that you have a great landing page that contains an appealing and convenient design, concise copy, clear benefits of your products, images, and a CTA button that facilitates conversions.
Improving the elements of your landing page allows you to increase conversion rates. Your website should be mobile-friendly since many users search for information from their smartphones.
There are several tips to consider when creating a landing page: make it simple, add your contact information, be consistent, and keep important information above the fold. It will help you boost your conversion rates. Our blog contains an article that will help you dive deep into landing page design, where you can find best practices and grab some inspiration from examples.
Paid advertising can be a great fit for many businesses. These ads provide your company with instant visibility in search results, the opportunity to reach a wider audience and acquire new customers. With paid advertising, you can control who sees your ads on social media by setting targeting parameters.
Web push notifications
These instant messages open you a great opportunity to reach your largest audience — site visitors. You can set them for onboarding to inform leads about the value of registering with your website, tell them about your news, interesting events, new products, features, releases, and share various offers, etc.
SendPulse provides you with the opportunity to choose a contact list, personalize and design web push notifications, send them to the necessary leads and obtain conversions. Below you can see how to create a web push notification by simply using our service.
Here is a detailed guide on how to create and send push notifications.
Although you might have heard that chatbots are primarily used for messaging applications, some companies use them for landing pages. Chatbots help visitors gather information about a particular product fast, serve as a support service, and guide them through a large quantity of information, etc.
For example, Kayak chatbot for Facebook Messenger. A new customer can easily find hotels, flights, and things to do. Within seconds, this chatbot searches many travel websites to find the information you’re looking for.
By using SendPulse, you can easily build travel industry chatbots for Telegram and Facebook messengers for free. For example, if you have a tour agency, you can keep customers updated about the available tours, inform them about COVID restrictions in different countries, and more.
Below you can see a travel chatbot flow for Telegram created with our service.
Besides travel and tourism companies, chatbots can also be used in the healthcare industry, eCommerce business, online service providers, etc. They help improve customer service, increase engagement, automate the process, and collect information. Find out how to create a chatbot for Telegram with SendPulse.
Let’s walk you through several examples which vary from one company to another.
Customer Acquisition Examples
- Pepe Jeans London
Remember that to engage new people, you’ll need a multi-channel strategy that will ensure effective messaging with your potential clients. Let’s see how world brands manage to do it through various marketing channels.
The service uses PPC ads to encourage customers to use their website and order an essay. As you can see, this ad appears when a user searches for websites that offer the service of skilled writers.
Twitter is one of the great ways of attracting customers since people are extremely engaged in social media. Hundreds of millions of Twitter users each month enable companies to effectively promote their business. This example allows you to see how HubSpot tries to engage new viewers to their virtual customer experience conference called “CX Spotlight 2021”. By mentioning digital industry leaders and free participation the company invites new participants.
Pepe Jeans London
Influencer marketing is another great way to win the trust of new clients. The team of the famous jeans brand decided to cooperate with a world-known singer Dua Lipa. This opinion leader with more than sixty million followers on Instagram helps Pepe Jeans London build brand engagement.
As you can see, ASOS uses Instagram ads for its promotion. Since the brand is aimed primarily at young and stylish people, using this platform is a great idea for attracting new customers. It involves a call-to-action button to drive traffic to their website and boost conversions.
This survey platform provider uses pre-roll ads to promote its service and does it through the popular platform — YouTube. It describes the benefits of the website and encourages users to visit the platform and obtain real-time insights from real customers.
To win new customers, boost ROI, and ensure the company’s growth, be ready to implement various approaches. Research to find out the most appropriate marketing channels and methods that will allow you to attract more people to your business.
- This article covers the definition of the term, acquisition channels, and how to measure customer acquisition.
- In this article, you can find customer acquisition examples.
- This article offers to find out the importance of customer acquisition and its benefits.
- This article defines the term and explains why customer acquisition is important for sustainable growth.
Last Updated: 05.03.2021