Customer Acquisition Strategies and Winning Examples
Everything a brand and its marketing machine does, ultimately, is to entice and impress the customer. Understandably, customer acquisition is the prime focus of many companies and brands globally. Only when you have acquired customers can you invest in customer retention strategies that help you to foster brand advocates in the long run. Increasing your customer base is a tried and true means of growing your business exponentially.
What Is Customer Acquisition?
Customer acquisition is the process of gaining new customers and increasing your customer base. It sounds simpler than it actually is. Customer acquisition requires systematic and sustainable methodologies that center on managing leads and inquiries as well as working consistently on lead generation, all of which pursue increased patronage of your store or brand.
Customer Acquisition is a targeted marketing strategy focusing on potential customers who have been made aware of the brand and may be inclined to purchase from it, especially given the right incentive. Customer acquisition ideas result from the collaborative efforts of efficient customer service and a smart marketing team.
Customer acquisition programs are a tactical process. Before you initiate your customer acquisition strategy, you will need to ensure that you have your data and statistics in place. You must know who your target audience is, what their needs and wants are, and whether or not your product meets these requirements. You also need to ensure that your customer acquisition platform, such as your website, is ready and able to handle the incoming traffic. Additionally, you will need to have a good support team to cater to your customers and resolve issues, if any. But before any of that happening, it is imperative to analyze Customer Acquisition Program costs instead of initiating your acquisition strategy blindly and hoping for the best.
What is Customer Acquisition Cost?
Customer Acquisition Programs cost is the aggregate cost incurred by the company during and for the customer acquisition programs. According to Hubspot, “In the last six years, the cost of acquiring new customers has increased by 60%.”
Acquisition cost is calculated by adding the overall costs (marketing and sales) of a campaign and dividing that by the number of customers acquired through the said campaign.
In simple terms,
Customer Acquisition Cost = Marketing + Sales costs
Customer Acquisition Programs Cost is crucial to evaluate how much value acquired customers bring to your business. It determines whether or not acquiring the said customer has been profitable to the business.
Why is it Important?
- Boosting Sales – The most obvious advantage of customer acquisition is a substantial boost in sales and overall revenue. Customer acquisition boosts demand which subsequently boosts sales and consequently boosts revenue.
- Helps in Business Expansion and Growth – Unique and effective customer acquisition ideas and programs can empower businesses and help them with business expansion. New customers give their feedback, reviews and even promote the brand if they are satisfied with products and services. Well-planned and sustainable customer acquisition strategies will help you acquire new customers while retaining those that have been acquired. Newly acquired customers are then introduced to the extensive range of products and services offered by the brands, which further helps with brand expansion.
- Increases Brand Awareness – Smart customer acquisition programs will greatly improve brand awareness and the brand’s reach in the market. It empowers brands to penetrate untapped markets and grow the customer base.
Successful Customer Acquisition Case Studies
What better way to understand customer acquisition than through customer acquisition strategy examples? Listed below are 5 customer acquisition strategies adopted by well-known brands.
- Instagram – Instagram is now a household name, but when it launched in 2010, it was marketed as an exclusive community for iPhone users only. It gained traction as a privileged photo-sharing community for iOS users and now is available to the masses through its Android application.
- Netflix and Amazon Prime – Netflix and Amazon Prime launched with a try-it-for-free-and-then-subscribe acquisition strategy. This is an excellent customer acquisition case study that proves how successfully it was received in the market through their phenomenal statistics.
- LinkedIn – LinkedIn uses the power of customer engagement and brand loyalty for Customer Acquisition Programs. Frequent LinkedIn users are responsible for engaging non-frequent users and even acquire new clients through invites.
- Vodafone Broadband – Vodafone has a strong customer acquisition strategy in the telecom industry. When Vodafone decided to venture into home broadband, the market was overcrowded. In order to stand out from the rest of the service providers, Vodafone offered transparency in cost-breakup charges, instilling trust in new customers.
Effective Strategies to Acquire New Customers
- Customer Referrals – ”92% of people claim to trust recommendations from family or friends,” says a study by Neilsen. What better way to acquire more customers than penetrating the network of existing customers! Customer referrals motivate existing users to refer products and services to their circle of peers and family. Since the recommendation comes from a known and trusted person, new customers are more likely to try it out.
- Optimize Old Content – The worldwide web is crowded with content, ranking on the first few pages of the search engines and to gain traction, search engine optimization is crucial. To generate organic traffic on your website, revamp and update old content with high ranking keywords and link building. HubSpot is known to use this strategy on a regular basis to acquire new clients every month.
- Build an Online Community – Social media accounts of brands and companies use this medium as a customer acquisition platform. Facebook pages, groups, and even recognizable social media handles are more than just a stage to sell products and services. They create a sense of community for users. You can leverage this medium and convert them into effective customer acquisition programs by sharing engaging and value-driven content with potential customers.
- Get Influencers on Board – Social media platforms are dominated by influencers, so to leverage this platform, get relevant influencers on board. Influencers have high engagement value and give you access to their large customer base through brand and product endorsements.
- Setup Affiliate Programs – Affiliate marketing has proven to be an effective customer acquisition strategy. It has two branches: one is link building through bloggers and influencers and the other is affiliating or partnering with other brands. Affiliate marketing is a highly engaging strategy with high ROI.
Read an extensive study on customer acquisition and latest strategies to amplify your business
How Annex Cloud Can Assist You with Customer Acquisition
Customer acquisition is a complex marketing process that requires expertise and experience. Annex Cloud provides the most comprehensive set of customer acquisition and loyalty products for both B2B and B2C, including Influencer Management, User Generated Content (UGC), and Referral Marketing (RM). Annex Cloud will assist you with bespoke acquisition strategies that are best suited for your business.
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