If you are here, probably you want to increase the number of customers that daily buy your product or services. Another option is that you may be here to identify possible strategies or mechanisms that will help you reduce your marketing costs without losing your growth potential.
Luckily, we are here to help you understand more about how to increase your brand awareness and revenue in a cost-effective way.
In a few words, customer acquisition refers to gaining new consumers. Sadly (but always true), your clients won’t stay around forever — no matter how good your retention strategy is — so you need a way to keep your business moving forward.
Customer acquisition covers each aspect of a new client journey, from lead generation to finally materializing its interest in a proper conversion (sell). This process is not always running smoothly as most of you may desire, some customers enter your website but never make a single purchase.
Because customers are the lifeblood of any business, there’s always a need for different strategies to continually bring new customers that indeed make purchases.
What is a customer acquisition strategy?
Customer acquisition strategies are a set of activities or mechanisms a company may take to gain new users or clients. Also known as customer acquisition management, the main goal of these strategies is to be able to repeat the actions that attract customers to your business naturally.
But wait, this is not the same goal as marketing?
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What is the purpose of customer acquisition strategies
Now that you know the difference between customer acquisition and marketing, other important reasons why these customer acquisition strategies are important, is because when you have them in place, they increase your brand awareness, sales, and recommendations.
Furthermore, when you acquire the right customer for your business - in a cost-effective way- they are likely to remain buying your product/service and they also will likely recommend your business, further increasing the total number of customers.
When the total number of clients arises, probably you will spread, driving your sales and ultimately your business. Finally, when your sales increase, more new products or services you can offer or new regions you can expand to.
Cost of customer Acquisition
To have an indicator that measures the efficiency to acquire new clients, different metrics are being used by marketers. Between these metrics, the Customer Acquisition Cost, also known as CAC, is widely used because it measures how much effort (time and money) a company has to put in to gain a new customer.
This metric is relevant because the last thing that a business wants to do is acquire new customers with more money that the new user is going to spend buying their products.
The CAC can be calculated as the total costs associated with acquisition (marketing and sales employees, advertising, operational cost) divided by the total number of new customers acquired within a specific time frame.
CAC= (Total marketing + sales cost) / Total number of new customers
How to increase your customer acquisition rate
There are different strategies that could be placed depending on your needs and your self-assessment. Not all methods work the same for all companies, a good customer acquisition strategy uses data to understand consumer behavior and identify optimal marketing opportunities to close deals with your ideal client.
Here we present you the most relevant ones:
This is a business-as-usual approach. For traditional companies, Ads produce results immediately, generating traffic, leads, and sales right after you launch. However, this tactic can get very expensive very fast if you don’t optimize your conversion funnel with the right practices.
Content Marketing in Social media
While traditional marketing is used in sectors such as food and car sales, disruptive businesses or companies that use new technologies have better results using social networks as their main channel of communication with new clients.
However, the best strategy, according to the new marketing trends, is not that you have to use other types of content and not only Ads.
Content marketing is a practice in which you share relevant information with your customer regarding the advantages of using your product or service to solve a customer’s need or pain. Furthermore, it is important to say that this strategy usually involves a mix of cross-channel marketing campaigns.
Content marketing is based on engagement and not big advertising budgets.
If you want to increase the conversion rate of leads into customers in the conversion funnel, do not forget that the more people that enter the funnel, the more they will end up buying the product in the end.
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Search Engine Optimization
SEO is also one of the main marketing trends in recent years. In a few words, SEO is a series of optimization practices for your websites and profiles so they are easily found by your potential customers when they use a search engine to respond to their needs.
We check our mail at least one time every day, for this reason, an email that invites the purchase through specific value information for each type of client you have can help increase your sales.
However, all of the above strategies have something in common, they are all about taking the customer’s needs first. This change has to be made to better understand your customer at all stages of the engagement and buying process.
Understanding also, how (and why) individuals interact with each channel differently.
When you adopt a customer-first approach, building personalized relationships with them, it’s easier and probably that they will convince themselves to buy your product or service.
Furthermore, this customer journey has to be supported by other strategies such as approach diversification, ideal client identification, and user acquisition channel definition to maximize your customer lifetime value.
Do you want to know an adequate customer acquisition strategy example?
Belfius, a Belgian bank, migrate a large portion of its process to a digital world to meet the evolving consumer preferences. In their own words, here are some of their results:
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As stated before, for businesses being able to connect with more customers, a digital migration of their customer acquisition strategies is required.
A digital acquisition marketing strategy is based on social media, SEO and Ads to target and attract specific customers at low CAC.
To do so, different messages have to be displayed in the different social networks to take advantage of each one of the main benefits of each social network.
For example, if you want to attract young people, a customer acquisition manager has to design his strategy based on Instagram and TikTok. Meanwhile, for an adult market, facebook may be the best social network to deploy Ads.
However, It is important to note that WhatsApp is ideal for banking and financial business due the high opening rate, which, according to Forbes magazine, is up to 98%, being a excellent choice to minimize your CAC.
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How can Truora help you with your customer acquisition process?
To help you to reduce friction in your onboarding process and provide a fix to different problems that make your leads leave without purchasing, Truora can provide services that allows your company:
- Simplify the collection and authentication of identity documents.
- Guarantees a digital, intuitive and completely mobile experience, in a easy and fast way via a WhatsApp chatbot
- Turn your onboarding into a 100% digital process and with no need of requesting physical signatures.
Among the different solutions available to reduce your acquisition cost you can find:
Now that you know the importance of optimizing your onboarding process to prevent loss of revenue and maximize the Lifetime Value of your customers, learn how to remain safe using WhatsApp
We invite you to download our free ebook!