You've probably heard the term Customer Acquisition before, and wondered what exactly it means. What does the process involve, and how can you make use of it? In this article, we break it all down:
Customer acquisition is the process by which you bring new clients or customers to your business. Regardless of the size or age of your business, customer acquisition strategy is essential to your business. The objective of this process is to create a sustainable and systematic acquisition strategy that also adapts to new trends, and hence evolves over time.
Although the whole process of customer acquisition may sound very similar to lead generation, the difference is really big:
A "lead" is someone who has given you their information for you to follow up and to possibly convert into a customer. An acquired customer/user has chosen to sign up/commit to your service or bought the first product of yours.
Encouraging Innovation
Many organizations make the mistake of thinking that they know exactly what their customers need without any true analysis. Although they might be right in many cases, there are always hidden niches and markets. Customer analytics can help with just that - providing you with insights into what exactly your customers are looking for in your service or product. Not only will they be able to find out any problems with your current product or service but will also identify the needs of emerging customers. All of this insight can be extremely helpful as it allows an organization to be more innovative in their approach towards customers, and design new services and products that cater to their specific niche. This will ultimately lead to acquiring new customers and increase of the revenue.
Revenue Impact Prediction
The great thing about utilizing a certain customer acquisition strategy is that it allows marketers or business owners to predict revenue impact. They can easily understand the budget needed and, therefore can increase or decrease their marketing budgets for funding certain campaigns. Fact is, this approach would not have been possible in the absence of customer acquisition strategy as decision makers are only focused on profitability and driving revenue, and need a clear demonstration of what they'll be funding. With customer analytics, marketers or business owners are now able to justify how increasing certain marketing spending can drive results.
Customer Acquisition Cost
Customer acquisition cost (CAC) is the cost directly connected to acquiring a new customer or a client. Such costs may involve marketing and advertising expenses, sales team expenses, traveling, meetings, etc. It is highly important to know your CAC because it allows you to measure your Return-On-Investment (ROI) and effectiveness of your campaigns. The customer acquisition cost is calculated by simply dividing your marketing and sales costs associated with a certain campaign or effort by the number of customers acquired from such campaign/effort.
About Eddans Marketing:
Eddans helps its clients to handle their customer acquisition affordably and efficiently. We utilize our knowledge of Analytics, Persona Building and Conversion Ratio Optimization to create and execute a successful customer acquisition strategy for our clients. We are experts in driving highly targeted traffic from Search Engines and Social Media and bring them to highly optimized landing pages we create, designed to convert fast. To learn more about Eddans services, click here
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