Acquiring a new customer can cost five to seven times more than retaining an old one. However, to get an established customer, you first need to acquire them.
It’s also not enough to offer a fantastic product or service. You need to strategically attract and retain a loyal customer base to ensure sustainable growth.
With customer acquisition getting more costly, here are 8 top strategies to boost your growth.
What is Customer Acquisition?
Customer acquisition refers to the process of attracting and converting potential customers into customers for your business. It involves identifying your target audience, reaching out to them through various channels, and convincing them to make a purchase. The goal is to create a seamless journey from the initial contact to the final transaction.
8 Customer Acquisition Strategies to Boost Growth
1. Know Your Target Audience
Before diving into customer acquisition strategies, it’s crucial to have a deep understanding of your target audience.
- What are their demographics such as age, geography, and household makeup?
- What are their interests and hobbies?
- What are their needs, preferences, and pain points?
- What platforms do they frequent?
By gathering data and creating detailed buyer personas, you can tailor your marketing efforts to resonate with your ideal customers.
2. Choose Your Channel Mix
With consumers shopping across multiple channels, brands have followed suit to provide different platforms and ways for consumers to research, engage, and purchase at the time of their choosing.
Top 5 Channels That Are Used the Most for Customer Acquisition Include:
- Websites – 89%
- Emails – 81%
- Social media sites – 72%
- Direct mail – 66%
- SEO/PPC – 65%
3. Email Marketing
Email marketing remains one of the most effective customer acquisition tools. In fact, it is so effective, that email generates $36 for every $1 spent, meaning email marketing ROI is a whopping 3600%! And 18% of companies achieve email marketing ROI greater than $70 per $1 invested.
- Use opt-in forms on your website, social media, and other touchpoints to collect email addresses.
- One of the most important factors for email acquisition success is to segment your email list based on factors like demographics, behaviors, purchase history, and interests. This allows you to send targeted and personalized content that will be most apt to resonate with your target audience.
- Personalize, personalize, personalize! Include your recipient’s first name and tailor the content to their preferences for a more personalized experience.
4. Social Media Engagement and Advertising
Social media platforms provide a golden opportunity to connect with potential customers on a personal level. Consumers are also increasingly making purchases on social media platforms or are influenced by social to later make a purchase.
According to research, 76% of consumers have purchased a product they saw in a brand’s social media post, with 11% buying it immediately, and 44% later buying online.
- When building your strategy, determine what you want to achieve with your social media ads. Whether it’s brand awareness, website traffic, lead generation, or sales, having clear objectives will guide your strategy.
- Focus on the social media platforms where your target audience is most active. Each platform has a unique user base and features, so choose the ones that align with your goals and audience.
- Consider incorporating video ads or short clips to convey your message effectively.
- Include social proof elements, such as user reviews, testimonials, or statistics, to build credibility and trust with your audience.
5. Direct Mail
Direct mail can be a powerful strategy for customer acquisition, complementing digital marketing efforts and providing a tangible touchpoint with potential customers.
Research conducted by Epsilon found that consumers spend over 108% more time reading direct mail compared to digital marketing materials, and 47% of consumers have made a purchase as a result of direct mail within the past year.
- Include special offers, discounts, or promotions to incentivize recipients to take action. Limited-time offers create a sense of urgency, encouraging quicker responses.
- Provide various ways for recipients to respond, such as a website URL, phone number, email address, or even a QR code. This accommodates different preferences and makes it easy for recipients to engage.
- Incorporate tracking elements like personalized URLs (PURLs) or unique promo codes. This allows you to measure the effectiveness of your campaign and track responses accurately.
6. Search Engine Optimization (SEO)
Optimizing your website for search engines to improve its visibility in search results. Ranking higher for relevant keywords can drive organic traffic and increase your chances of attracting potential customers.
- Identify relevant keywords and phrases that your target audience is likely to search for. Use tools like Google Keyword Planner, SEMrush, or Ahrefs to find keywords with a good balance of search volume and competition.
- Create high-quality, informative, and engaging content that provides value to your audience. Content that solves problems, answers questions, or educates readers tends to perform well in search rankings.
- If you have a local business, optimize for local searches by setting up and verifying your Google My Business listing. Include accurate contact information, business hours, and customer reviews.
7. Leverage Data for Deeper Insights
Data-driven decision-making is essential for refining your target audience and customer acquisition strategies.
Be sure you are taking full advantage of the audience in your database (1st party data) and supplementing with other types of data sets such as third-party data for a more comprehensive understanding of your audience and what will drive them to purchase.
Use analytics tools to track the performance of your campaigns, understand user behavior on your website, and identify areas for improvement. Regularly analyze the data to tweak your approach and optimize your results.
8. Target New Movers
Moving to a new home signifies a fresh start, making it an ideal time for individuals and families to establish new habits and loyalties. This means the move is also a prime opportunity for businesses to connect with a receptive audience actively purchasing products and services, and who are seeking to establish relationships and brand loyalties with new companies.
According to research by Porch Group Media, 90% of new movers are open to trying new brands for items and services. Whether it’s a local restaurant, furniture store, gym, or utility provider, new mover marketing can clearly yield impressive results.
Why Target New Movers?
- High Intent: New movers have an immediate need for various services, from setting up Wi-Fi to stocking up their pantry. Their intent to purchase is often high, making it a prime time for businesses to capture their attention.
- Lower Competition: Compared to broader marketing efforts, new mover marketing can have significantly lower competition. By targeting this niche audience, businesses can achieve better visibility and engagement.
- First-Mover Advantage: Being among the first brands to reach out to new movers establishes an early connection that can translate into long-term loyalty. In fact, 85% of new movers use the first business that contacts them.
Customer acquisition is crucial for the growth and sustainability of any business. The key lies in adapting your approach and continuously fine-tuning your strategies to meet evolving customer needs. Effective customer acquisition strategies are investments that pay off by fueling your business’s journey toward greater growth.
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