Customers have an endless number of choices when it comes to how to spend both their time and their money. With so many options available, customers tend to become extremely selective about where they spend their money. This is why brands need to optimize customer acquisition and customer retention.
Customer Acquisition: What is it?
Customer acquisition is a process used by brands to attract new customers. Brands need to develop a strategy that is sustainable as well as systematic. And these strategies should be able to evolve as trends evolve and change. Here is how a good customer acquisition strategy will be able to help you:
- Improving sales and revenue
- Outside stakeholders see you as more credible
- Developing brand awareness
- A KPI that can be used to measure success
- Acquisition costs are kept low
What are The Steps Involved in Customer Acquisition?
You can think of the process of customer acquisition as a sales funnel. As a consumer moves through this sales funnel, they will be able to:
- Gain brand awareness
- Add your brand’s service or product to their consideration pool
- Decide to purchase the product or the service
There are six steps involved in what we call the Customer BuyWay. Knowing this will help you develop your customer acquisition strategy.
- Awareness – This is when a potential lead first learns about a brand or makes contact with that brand.
- Interest – At this point, the lead considers whether they are interested in the brand or not. Leads can be turned into prospects with the help of infographics, landing pages, social media, videos etc.
- Consideration – The prospect at this point thinks that the product or service could be useful. They also consider if the brand is trustworthy. How-to tutorials, case studies and blogs can help your brand build your reputation.
- Intent – The prospect needs to be convinced that they would rather purchase the product or service from your brand, over a competitor.
- Evaluation – Your brand will be able to prove through customer reviews, testimonials, demos and case studies that you have the best product or service.
- Purchase – This is the last step, and at the bottom of the sales funnel. The customer at this point is ready to buy from you. You can use free trials, discounts, gifts and such to seal the deal.
Customer Acquisition and Customer Retention
Your customer acquisition strategy can help ensure that potential leads get turned into actual customers. When you improve customer acquisition, you ensure that customers turn to your brand over your competition’s.
But just acquiring customers isn’t enough, you should also be able to retain them. Keep in mind that it costs nearly five times as much to acquire new customers, as compared to retaining them. Increasing rates of customer retention can help you boost profits as well.
How Do You Improve Customer Retention?
After acquiring customers, you need to ensure that they become return customers and stay loyal to your brand. You can use these three ways of improving customer retention:
- Provide Personalized Offers – Target consumer groups that can align themselves with your brand identity. Offer exclusive discounts to them, combined with other sales. Choose consumer groups that have a lot of spending power.
- Enhance Customer Experience – Consider using digital verification so that you can send personalized offers to more customers. This will also provide you with opportunities associated with deeper engagement.
- Increase Demand Using Personalized Offers – There are certain times of the year that are considered the peak for shopping. Take for example end of the year holidays.
Your customer acquisition marketing will help ensure that you can attract prospective leads to your brand. But your customer retention strategies need to be on point as well, so you can ensure customers stay loyal to your brand. For this reason, considering your customer acquisition plan carefully is essential.
If you’re still curious about how best to acquire and retain customers, subscribe to the TopRight blog! Or connect with me on Twitter and on LinkedIn. You can learn more about how to bring simplicity, clarity, and alignment to your brand’s story, strategy, and systems in our best selling book: Marketing, Interrupted.