Introduction
Think of your business as a garden that you want to grow and take care of. Like a garden needs new seeds to grow and thrive, your business needs new customers. It’s not just luck that brings in these new customers; it’s a skill called customer acquisition.
You’re in the right place if you want to know how to make a stranger into a happy, loyal customer. This article lists simple but effective things you can do today to help your business grow, such as tried-and-true ways to get new customers.
What is Customer Acquisition?
Customer Acquisition is simply:
“How companies find new customers and get them to buy their goods or services.”
It’s the process of turning a complete stranger into a happy customer, like sparking a great new friendship.
Why Customer Acquisition is Important?
Because your business needs new customers to stay alive. Every new customer matters because they help you:
- Make Your Business Bigger: More customers mean a bigger, more successful business.
- Get More Customers: Every new customer is a new way to make money.
- Stay in Business: You need to make new customers to stay in business.
- Beat the Competition: You are doing better than your competitors, as your customers are increasing day by day.
Without a clear plan for getting customers, your business will not be able to expand. Therefore, mastering your customer acquisition process is essential.
Customer Acquisition Funnel
Acquisition journey of a customer does not happen in a single leap; it happens over time (often defined as the Customer Acquisition Funnel). Think of it as a simple four-stage road map:
- Awareness: This is the first time they hear about your business or company. They are just becoming aware of your existence.
- Interest: They like what they hear and want to learn even more. They may check your website or possibly look up your product online.
- Decision: They are actively thinking about whether to purchase from you. They may compare your product’s price or features with your competitors.
- Action: This is the finish line! They have actually purchased your product or service. Finally, you acquired a new customer!
All this occurs over time and requires different customer acquisition strategies for each stage.
How Do You Get New Customers?
There are a variety of channels you’ll need to use to pull people in at the top of your desired funnel. You don’t have to use all the varieties at once, but it’s good to know what your options are.
Click, Connect, Convert: Essential Online Channels
These are online spaces where you can easily access a large audience:
- Online Ads: You can pay to have ads shown to specific people on websites, on Google, and on social media sites, including Facebook.
- Social Media: You can post interesting and valuable content on social media platforms like LinkedIn, Facebook, or Twitter etc. It will help others to become more familiar with your brand.
- Email Marketing: Get emails from people who have exhibited some level of interest in your business and send forgotten helpful emails, messages, promotions, sales, etc.
Finding Your Tribe (SEO, Content & Word-of-Mouth)
These are not specifically about direct selling to an audience but rather gaining trust and being the go-to place to be helpful:
- Website Content (Blogs & Videos): Create content about yourself in regard to answering questions your ideal customers are Googling. This positions you as the expert.
- SEO (Getting Google to Help You): Optimize your website so Google can effectively read and understand your website to help generate a higher ranking for the items your potential customers will search for.
Friends Tell Friends (Referrals): Encourage your loyal customers to recommend you to their friends and family. It’s the most effective method for acquiring new customers.
Smart Tips for Getting Customers
Here are some smart tips through which you can effectively attract new customers.
Tip #1: Know Your Ideal Customer!
Stop guessing and start knowing. Think about the target audience, who likes your product the most. Consider aspects like their age, their likes or dislikes, and any problems they may be trying to solve. When you actually know who you are communicating with, you can tailor your messages and advertisements more effectively to target that audience. A bit of research can make a big difference; don’t hesitate to ask someone what they need.
Tip #2: Give Something Amazing!
You have to provide something useful to your customers, like:
- Solve a problem: People buy solutions. Show them that you have a solution to their problem!
- Give before you ask: This could be as simple as a freebie, a useful piece of content provided to the recipient, or some advice/plan/taster. This creates trust, and people buy from those whom they trust.
- Long-term perspective: Build a long term relationship with the customer, not a sale.
Tip #3: Grow Wisely—Test, Learn, and Optimize!
Getting new customers is an ongoing process.
- Test Different Things: Try those things in which most people are interested, like different ads, headlines, and email messages.
- Review the Stats: Be sure to monitor how many people hit your site, clicked, or made it through to purchase on your website.
- Change what isn’t working: There is no reason why you should be throwing money and time continually out the window with online advertising that doesn’t work for you. And be willing to make changes or adjustments that are on the smaller side, which can often have an outsize effect.
The Price of a Customer: Diving Deep into CAC
One magical metric that can determine your ability to grow your business. If you dream about growing your business or company to unheard of levels, then you need to pay attention to something known as the Customer Acquisition Cost (CAC).
What is Customer Acquisition Cost (CAC)?
“CAC is the total money you spend to get ONE new customer.”
The Simple Math 🔢
The basic idea is simple:
For instance, if you spent
$100 on an ad, and that ad produced 10 new customers, your CAC would $10 ($100/10=$10).
Why CAC Matters
- Are you making a profit? If a customer costs you too much to acquire, you won’t make money from their purchase.
- Lower is Better: Obviously, the less you spend to attract a customer, the more money you keep in your business.
How to decrease your Customer Acquisition Cost (CAC)?
If you want to decrease your Customer Acquisition Cost (CAC), you need to reduce what you are spending to gain new customers. You can do this by the following strategies:
- Simplify the process on your website for customers to make it easier to use.
- Make sure your ads and messages are being sent to the appropriate audience.
Finally, keep your existing customers happy because they generally cost less to sell to again.
Your Actionable Takeaways:
Investing in customer acquisition will set the stage for tomorrow’s growth and success! Build a solid base of new customers today!
- Know Who Your Customers Are: In informing your customers, you should define your customers, their problems, age, and interests.
- Begin With Something Free: Share tips, a resource, or a free guide or e-book that you can share.
- Embrace the Funnel: You should understand the journey from Awareness to Action and align your efforts with each specific stage.
- Track Your Cost: Measure your CAC regularly to ensure your business moves in the right direction.
- Never Stop Testing: If a strategy is not working well, modify it to improve its effectiveness. Always use a “test, learn, and optimize approach.
You can easily convert clicks into clients with these insights and customer acquisition strategies. You have the power to attract, retain, and convert people effectively. Now go forth and grow!
“Acquiring a customer isn’t just a cost; it’s an investment in your future growth.”
Watch the Full Session Video Below
Your Next Steps: Beyond the Basics
Level Up Online: Structured Learning for Growth
Ready to transform how you find and attract your ideal customers? This curated collection of courses, books, and resources is your next step.
- HubSpot Academy: Digital Marketing Certification Course
- Google Skillshop: Google Ads Certifications
- Coursera: Google Digital Marketing & E-commerce Professional Certificate
- Stanford University: How to Get Users and Grow (Alex Schultz, Facebook VP of Growth)
Your InfoHub: Books & Blogs for Continuous Growth
- “Traction: How Any Startup Can Achieve Explosive Customer Growth” by Gabriel Weinberg & Justin Mares
- “This Is Marketing: You Can’t Be Seen Until You Learn to See” by Seth Godin
- “Contagious: Why Things Catch On” by Jonah Berger
- Ahrefs Blog
- Neil Patel’s Blog
- Shopify Blog (for e-commerce businesses)
Please reach out to us via email [email protected] if you have any questions or concerns.
