7 Best Strategies in Customer Acquisition
Successful businesses learn the best way to get faithful customers and find strategies to continue to get customers by doing customer acquisition or good customer acquisition strategies.
Expand your business requires effective marketing and networks. When you combine work ethos and willingness to try different strategies, your business will continue to get new customers and benefit your business now and in the future.
In this article, we discuss what customer acquisition, customer acquisition strategy, and how to calculate customer acquisition costs in your business.
What is customer acquisition?
Customer Acquisition or customer acquisition is the process of attracting new customers to your business products or services. Your business goals must have a sustainable and systematic strategy that will continue to grow with trends, shifts, and changes in business in the future.
Attract customers and develop relationships with customers bring growth and loyalty to your business.
7 Best Strategies in Customer Acquisition
Here are seven strategies that you can use to get new customers:
1. Determine your target audience
Determine your target audience by conducting market research about other businesses that offer similar products and services. Notice who their interesting business model and platform which they use have the number of followers and the largest active customers. This will give you a general description of the general characteristics, demographics, and behavior of your target audience.
After you get this information, develop a plan how you can withdraw your target audience to your business and consider whether there is a market niche that might be ignored by your competitors or not.
You can also try to analyze your current customers and think about characteristics, interests, and the reason they buy products or use services from you. Identifying these important things will give you a more comprehensive view of how you can get new customers.
2. Build awareness from your brand
In the digital era, the best way to get brand awareness is through the use of digital media. The presence of social media and partnerships with larger brands can help obtain brand awareness.
It is very helpful for interacting with your customers and your audience at the personal level and social media lets you do it. Another key for brand awareness is consistent with digital marketing and production of your content. This helps your customers see you as a reliable brand, build trust with you, and more likely to return.
3. Maximize reference
References or references and marketing by word of mouth are still a credible and decent customer acquisition method. This strategy can increase your chances of getting new customers through other customers who return.
To maximize references, you can provide excellent customer service, encourage social media sharing or offer referral incentives to current customers and referred customers.
For example, the business of the car salon service provides a 100 thousand discount to customers who spread the referral code and their one reference to register for the service.
Your customers will often be motivated to share great services if there is something in it for them or if something is offered by your business above their general expectations.
4. Offer a discount
Offering free items or goods with large discounts will help create more brand awareness and will allow prospective customers to try the product before they buy it.
This must be done in a way that asks the least amount of costs for your business. For example, some business offers free shipping or free items with the first customer purchase.
You can also provide free discounts or items to influencers on social media that will market your product for you instead of free products or services or large-scale discounts. Offer great service and wake up the value of your product or service and chances are you will get loyal customers.
5. Involve in your community
When you offer your product or service in your community and talk on a small local public program, you have the opportunity to connect and build yourself as experts and leaders in your industry.
Some events may not offer compensation to you, but you can get loyal followers of people in your community that will benefit you in your future success.
6. Testimonials from previous customers
The best way to get new customers is to collect testimonials from customers who are currently satisfied. For example, you can try asking for customer reviews about your products and services.
If they are very satisfied with your business, you can also ask if you can display their testimonials on your website.
It builds trust and credibility in your field and is likely to give new customers a good reason to buy your product or service for the first time and see its own quality.
7. Take advantage of existing networks
The best customers you will have are those who are currently on your network. Market your product to them and show your value.
Most likely they are people who want to support you and give mouth referrals without the expected incentives.
Referral or referral from personal contact is an important customer acquisition strategy that can be continued throughout your business when you develop new products and services.
How do I calculate the cost of customer acquisition?
Customer Acquisition Costs or Customer Acquisition Cost (CAC) are the costs you get when you bring new customers to your business. This includes marketing, advertising, and event costs.
CAC is generally calculated according to a particular time frame or campaign, and this is important because it allows you to measure the actual costs of your marketing efforts.
When you know which marketing efforts provide the best return on investment for your business, you can reduce expenses for other marketing efforts that you might try.
Before you calculate the cost of the customer’s acquisition, ask yourself these questions:
- How often do your customers make a purchase average? For example, there is a difference between the frequency of purchases in luxury car dealers and coffee shops. This can affect your CAC calculation.
- Does your company spend money on marketing businesses that are projected will produce results in the upcoming quarter? For example, if you invest in a Q4 campaign but pay it in Q2, most likely you will not get new customers at the end of Q2, which might have an impact on your CAC Q2 calculation.
Customer Acquisition Cost (CAC) is calculated by dividing marketing costs from a certain period or campaign with the number of customers obtained from the campaign.
Basic example of the CAC formula is CAC = MC / CA.
- CAC = Customer acquisition costs
- MC = Marketing Costs
- CA = customer obtained
If you want to get a deeper perspective on customer acquisition fees, then you need to enter any costs associated with marketing expenses.
A simple formula can be applied to certain campaigns, but complex formulas must be calculated with a certain period of time, such as the moon or fiscal year. This includes a campaign budget, marketing salary, and overhead costs.
Examples of deep formulas are: CAC = (MC + W + S + OS + OH) / CA.
- W = wages for sales and marketing representatives
- S = marketing and sales software
- OS = outsourcing service
- OH = Overhead costs for sales and marketing
That is the discussion of the strategy and tips in calculating customer acquisition in business that is very important you do to find out how much it costs you spend to get one customer.
But in reality, there are still many businesses that do not calculate customer acquisition costs in detail so that it causes bias in the marketing process and product pricing process.
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