Increasing your customer base is the quickest way to grow. Therefore, customer acquisition is considered to be the most obvious way to achieve your revenue goals. Let’s start with an inspiring customer acquisition story.
Arguably, Instagram is the most popular social media platform in 2021 with having 1.074 billion active users worldwide. However, they were not always super famous from their very early days. They also had to start from scratch. So, how did they do it?
First, they figured out their potential user category and their preferences. Moving to the next step, they developed a community for interested users. Simultaneously, they were improving their algorithm and personalizing their platform leveraging customer insights. Eventually, they built successful user engagements and communities. Once their wings caught fire, people started spending time on their platform, businesses bought their brand and in exchange, they were given entertainment and mass engagement.
Customer acquisition
Customer acquisition is the method of procuring new clients or customers to your brand. This method intends to create a sustainable and systematic strategy to get new customers that can evolve with time.
How to acquire new customers?
Brands can obtain new customers through several strategies, incorporating offline and online marketing tactics by leveraging various digital channels.
Some of which could include:
- Display advertising
- Affiliate marketing
- Content marketing
- Social media marketing
- Email marketing
- Search marketing
Once you get the hang of customer acquisition, we can quickly move to the methods for implementation.
Know your target audience
Before leveraging customer acquisition strategies, it is important to figure out the target audience for your product or service. What age group likes your offerings? Who visits your website more often? What do they search for? Who read your blogs? Who likes your posts on social media? Understand what kinds of people are more attached to your brand. Once you have understood your market space, you can whittle out the irrelevant sections for your brand to show up and focus on the targeted one.
It has an ulterior motive behind just knowing your potential customers. You gain valuable customer insights which can help to enhance your products or services.
Pick the right acquisition channel
Building upon the above discussion, knowing your ideal customers is not enough. Picking up the appropriate channel for each prospect is equally important. Now talking about the ulterior motive of understanding the targeted audience i.e. gaining insights, by which you can figure out their preferred channel of engagement.
First, set priorities and clear goals for your campaign. Even the sketchy one will make it easier for you to understand whether your tactics will work out or not. Once you have experimented with different channels, compare respective success rates. By now, you will know where your potential customers want to communicate and finally, go for the acquisition.
Do giveaways
Today’s consumers are very clear about what are their needs. They are high on information and hyperactive. They will not just be swayed by your promises to spend their money on your offerings.
To acquire these prospects as loyal customers, brands should contemplate doing giveaways. Proffering them an opportunity to experience your products or service, first hand, will push them to consider you as an option. The best way to implement such tactics is to run giveaway campaigns through digital channels.
Run referral programs
Referral programs are a tried and tested method. It is the foundation of any customer acquisition strategy, particularly with fledgling brands. Basically, it is about offering something extra to your existing customers to refer your products or services to others. The offering may be in the form of incentives or add-ons or discounts, etc. Additionally, you can offer discounts to the referred ones as an extra nudge to buy your products or services.
Increase website and email engagement
This customer acquisition tactic may be as old as the internet but it is the most effective one. It allows the brand to be in front of the prospects to promote their offerings and the easiest method to get new customers. Besides, sending customized emails to leads is a way to keep in touch with them and update them about your offerings.
Customer acquisition funnel
A customer acquisition funnel consists of six stages, but to make it easier for you we lump these into three simple ones.
- Top of the Funnel (TOFU)
- Middle of the Funnel (MOFU)
- Bottom of the Funnel (BOFU)
TOFU
TOFU is defined as the prospects who are in the interest and awareness stage. They are simply known as leads. Your brand is mostly unknown to them or they are discovering you. Lately, they may have realized a need that your brand could serve the purpose with the product or service. However, they are unaware of your existence.
TOFO customer acquisition efforts put your brand directly in front of the prospects. By leveraging different tactics and mechanisms, you can move them down to the next stage of the funnel.
MOFU
Prospects are in the MOFU recognized as the consideration and intent stage. By now, they know your brand and start to think seriously about your offerings. It’s just that, they are struggling to decide whether it is worthwhile to invest in your product or services. These are the ones who may have subscribed to your newsletters and are frequent visitors to your website.
BOFU
Prospects are in BOFU considered as the evaluation and purchase stage. Now, they are ready for the purchase and comparing with different brands.
The purchase will rely on the brand value, price, quality, add-ons, and excellent customer service. Prospects like to be absolutely sure before committing to your product or service. They are likely to ask hundreds of questions and therefore, exceptional customer service can prove to be a deal-breaker. Finally, once they purchase from you, they become your customers.
Conclusion
There is a popular saying in English: “Make new friends but always keep the old. One is silver and another is gold.”
The same applies to developing a customer base for your brand. Customer acquisition is all about procuring consumers that stick around. Apply strategies to get customers on board, but never take them for granted once they are committed to your brand. It’s a relationship of trust where you have to make the efforts, always. Once you start doing that, they will become your brand advocates.
Pratik Salia is an experienced professional with a demonstrated history of working in startups & conglomerates. He is skilled in Operations, E-commerce, Customer Experience, ABM Marketing, B2B Marketing, B2B Brand Positioning, Customer Relationship Management (CRM), Market Research, and Management.
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