6 Cost Effective Customer Acquisition Strategies

Customer Acquisition is the process of acquiring new customers for your products or services. The strength of a business Customer Acquisition Strategy (CAS) is a major determinant of the growth rate of an organization. It highlights the resources and processes needed to educate prospects about why your product is worth their purchase. CAS isn’t just about getting lots of new leads into your company’s sales funnel, it’s about acquiring them in an efficient manner that is cost-effective for your company [1]- hence the crucial consideration of what your Customer Acquisition Cost (CAC).

According to Neil Patel, CAC is the cost of convincing a potential customer to buy a product or service. If it cost more to generate new customers than a company gains, its effort to grow revenue will remain futile.  In this article, we will explain some of the smart customer acquisition strategies that won’t break the bank or leave your company in red.

1. Leverage influencers

In today’s ecosystem, recommendations and referrals proven ways of effectively gaining awareness and customer conversion. Customers brought in by referrals (people they trust) are more likely to remain loyal and engaged because they have an instant connection with the company—a face to match with the brand. Many best practices and marketing tactics leverage relationships with key influencers and partners in their industry as one of the most efficient opportunity to scale up. Select and build relationships with influencers in your business niche, the ones who are likely to have some reasonable power of influence over your company’s target market. Influencer partnership programs are one of the fastest and cost-effective ways to boost a company’s referral base and promote word of mouth.

2. Enhance website for conversion.

In a highly competitive market, simply knowing ways to improve your website for conversion could single you out for more sales. In this case, everything counts, from ensuring clear “calls-to-action” are really calling customers to action, to ensuring your landing pages are fully optimized with relevant keywords, testing website responsiveness to devices,  ensuring chatboxes are fully integrated, down to using appropriate fonts, and having clean and clear copywriting – are all tactical approaches to marketing what you sell. According to new breed, driving website traffic is important, but the ultimate goal is to get your visitors to convert. Your website should include conversion pathways to provide your buyer personas ample opportunities to move through the funnel. 

3. Get employees to understand the “big picture”

Most companies are not aware of their first advocates, seated at desks in their offices – their employees. According to Neil Patel, employees MUST understand your user acquisition process and what their roles are in on-boarding new customers (both short and long term). For instance, your IT department should be geared-up to proactively fix bugs and other technical issues raised by a customer at the speed of light. So also, customer service reps must be promptly alert to attend to enquiries and complaints. Since employees are your company’s first voice, they must be motivated and developed such that they are actively involved and committed to achieve your customer acquisition goals.

4. Produce solution to an emerging “need”

Oftentimes, start-ups do not only have to create the brand but also the demand to get on potential customer’s radar. New products usually get swallowed up by consumers when market and consumer research have revealed it as a “need” but comprehensive solution isn’t available yet. Start-ups and existing companies leverage such scenarios by giving out information or actual solutions that solves those problems.

5. Actively use Social Media

According to oberlo, “the usage of social media around the world is ever-increasing. It’s without a doubt one of the most popular online activities that users engage in. Social media statistics from 2019 show that there are 3.2 billion social media users worldwide, and this number is only growing. That equates to about 42% of the current population”. And so, a lot of companies are now acknowledging social media as one of the most efficient and cost-effective way for brand awareness, prompt engagement and credibility. “If you can build your social presence by conveying a strong brand representation and likeability, these attributes could eventually contribute to customer acquisition as much as your product does”. [2]

6. Discover the channels that work for you

Streamlining your marketing channels will help manage expenses and focus on the channels that promises high conversion rates. A good way of discovering the right acquisition channels is thinking more about the potential audience for your product or service.  This will enable you refine and target your customer acquisition efforts more accurately. Now, there are a number of different frameworks that can help you identify the best channel to use for your customer acquisition strategies but for the most part, it takes a lot of experimenting to find the right channel. Once you’ve tested different channels, you will be able to compare individual successes relative to each other. [3]

Before going all the way to acquire new customers, is your business ready to take an influx of customers? What’s your current rate of customer satisfaction? Your answer to questions like these, will help develop a thoughtful CAS, give a direction and help you measure progress.  Are there more cost-effective CAS you’d like to share, write your thoughts in the comment section.

 

Anu Ogunlowo

Anu Ogunlowo, Content Marketer| Copy writer at ikOOba Technologies. Former SEO analyst at Konga, online shopping mall. Gained customer intelligence as a customer service agent and moved to a chosen career path. She is an expert and ever-improving digital marketer, content strategist, SEO and Social media analyst.

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