Customer acquisition is a critical aspect of building any service-based business. Acquiring new customers to buy your services and products provides measurable value by:
- Expanding your customer base and business reach
- Generating revenue growth through sales from converting acquired customers
- Demonstrating your company’s ability for growth to investors and community partners
However, if you are not taking a strategic approach to finding and gaining new customers efficiently and consistently, then your customer acquisition cost (CAC) will be higher than your ROI and your business will lose money. The CAC is the total cost of bringing 1 new customer to your business; factors include costs for marketing and advertising, events or promotions. According to ProfitWell, customer acquisition costs have risen by 50% over the past 5 years, and reducing those costs are a top marketing priority for many companies.
What this information proves is that having a customer acquisition process isn’t valuable by itself. Your goal should be to create a systematic approach to customer acquisition that utilizes marketing and customer service techniques to attract and engage quality customers who are already looking for your products and services. At the same time, your approach should be adaptable enough to respond to changing marketing and customer trends.
A strategic customer acquisition process will drive down your CAC and optimize ROI.
Use Performance-Driven Marketing t
Performance-driven marketing strategies can help streamline the acquisition process to attract, engage, and convert new customers to your business and services. Here are the top strategies you should be employing to ensure your customer acquisition efforts are bringing value to your overall marketing plan.
- Create a flexible strategy that utilizes multiple marketing channels. Today, customers are more wary of advertising and less likely to trust salespeople when they are considering purchasing a product or service. Don’t rely on 1 acquisition strategy to drive new customers to your business — invest in multiple media channels and constantly analyze your strategy plan to boost efficiency across all platforms, cut marketing spend on low-performing channels and seek new, cost-effective channels where you can find quality leads.
- Determine your target audience. You will waste valuable resources and marketing dollars by failing to determine your audience demographics and failing to focus your acquisition efforts on the potential customers who fall within your target audience.
- Use analytics to adjust your customer acquisition strategy for increased efficiency. Not all marketing channels will perform well for attracting and engaging new customers. Monitor and track every marketing campaign to determine where your new customers are engaging and converting. Don’t waste valuable marketing dollars on channels that aren’t performing — you will drive up customer acquisition costs and negatively impact your ROI.
- Use customer acquisition to build a foundation for customer retention. Customer acquisition is about more than just gaining new customers — it’s about gaining quality customers. Satisfied customers who return to purchase your products and services again are more cost-effective and have a more profitable lifecycle value. Additionally, referrals, testimonials and case studies from happy customers can help drive new customer acquisition.
NewGen Marketing Specializes in Efficient Acquisition Strategies
At NewGen Marketing, we identify and nurture quality leads using call centers, inbound marketing and outbound marketing strategies. We make sure all of your marketing dollars are being used as efficiently as possible to convert new customers and leads into sales. Because we use performance-driven strategies, your marketing dollars will be invested in the channels that are producing measurable results. Performance-driven marketing will drive down customer acquisition costs and optimize your ROI.
Contact NewGen Marketing today for a free consultation to discuss the performance-based strategies that will drive sales and increase your bottom line.