Customer acquisition
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No matter what industry, niche, or profession you're in, paying customers are the lifeblood of any business. While every business owner and manager cares about their customers, not everyone looks at them through the lens of a good customer acquisition strategy.
Having a customer acquisition process in place can help you make your revenue more predictable and repeatable, rather than subjecting it to a random event. You can also get a better idea of how it all impacts your finances, such as the average amount each customer brings in versus the cost of acquiring and retaining them.
If you're looking to develop a lead generation strategy, you've come to the right place. In this video, we'll discuss what it is, how to figure it out, and how you can start using a lead generation strategy right away.
What does it mean to acquire a customer?
In its simplest form, customer acquisition is the process of converting potential customers into paying customers. But a customer acquisition strategy is much more than that.
It is a measurable, repeatable marketing process that captures a prospect's attention, moves them through the buying cycle, and converts them into a long-term paying customer.
Calculating the cost of customer acquisition (CAC)
Every business needs to know how much it costs to acquire a new customer (CAC) to find out if your marketing strategy is successful.
To calculate your CAC, divide your total marketing costs by the number of new customers you acquire.
Customer acquisition cost formula: total marketing spend divided by total number of new customers
Let's say our LinkedIn page brings you 15 customers per month and you spend $200 on content development. Your CAC would be $200 divided by 15 customers, or $13.33 per customer.
Once you have determined your CAC, you can use it to calculate how much money you earn from each order.
For example, if a customer spends an average of $70 in your store and you keep a 50% margin on each order, your profit is:
$70 (average order value) x 50% (gross margin) – $13.33 (CAC) = $21.67 (profit)
Try these six customer acquisition methods.
Are you ready to start your own customer acquisition efforts? Let's look at some of the most proven techniques used by brands around the world.
1. Email marketing is one of the most profitable types of marketing. According to Statista data, brands in the retail, e-commerce and consumer goods industries achieved a massive return on investment (ROI) of $45 for every dollar they spent on email marketing.
You first need to build an email list. You can do this with pop-ups and newsletter signup forms on your website, as well as contests and giveaways on your website and social media.
Once you've built your list, you can build relationships with leads through email in many ways, including:
Newsletter. Inform your customers about what's new in your company. Discuss news and new products and be creative with content that gives a look behind the scenes, for example how your products are made and who your team is.
Promotions. Is there a sale or event coming up? Generate interest via email.
Transactions. Use the registration and purchase confirmation as an opportunity to sell more goods, upsell and cross-sell.
2. Content advertising
//"Content is king," as you may know. Especially in today's world where people spend hours a day on websites, social media, and streaming services.
If you want to grab people's attention, pique their interest, and get them to buy, you need a good content marketing plan.
Your content marketing strategy may include:
Blogs. Write helpful and interesting articles about your company, your products, and things related to your products. For example, if you run a cosmetics brand, you can post skincare tips and makeup tutorials on your blog.
Social media. Create posts, videos and other interactive content that is related to your brand. Make sure to back this up with user interaction – for example, respond to every comment and leave comments on other posts to stand out.
Other options include podcasts, print publications, apps, press releases and more.
3. Influencer sponsorship
Influencer marketing is a huge industry, especially on social media apps like Instagram, Facebook, and TikTok. Brands partner with influencers to promote their goods or services through this channel to attract customers. An influencer, by definition, is a person or thing online that has a loyal, engaged following.
By working with the right influencers—those who are in your niche and relevant to your brand—you can reach hundreds or thousands of potential customers.
Having a customer acquisition process in place can help you make your revenue more predictable and repeatable, rather than subjecting it to a random event. You can also get a better idea of how it all impacts your finances, such as the average amount each customer brings in versus the cost of acquiring and retaining them.
If you're looking to develop a lead generation strategy, you've come to the right place. In this video, we'll discuss what it is, how to figure it out, and how you can start using a lead generation strategy right away.
What does it mean to acquire a customer?
In its simplest form, customer acquisition is the process of converting potential customers into paying customers. But a customer acquisition strategy is much more than that.
It is a measurable, repeatable marketing process that captures a prospect's attention, moves them through the buying cycle, and converts them into a long-term paying customer.
Calculating the cost of customer acquisition (CAC)
Every business needs to know how much it costs to acquire a new customer (CAC) to find out if your marketing strategy is successful.
To calculate your CAC, divide your total marketing costs by the number of new customers you acquire.
Customer acquisition cost formula: total marketing spend divided by total number of new customers
Let's say our LinkedIn page brings you 15 customers per month and you spend $200 on content development. Your CAC would be $200 divided by 15 customers, or $13.33 per customer.
Once you have determined your CAC, you can use it to calculate how much money you earn from each order.
For example, if a customer spends an average of $70 in your store and you keep a 50% margin on each order, your profit is:
$70 (average order value) x 50% (gross margin) – $13.33 (CAC) = $21.67 (profit)
Try these six customer acquisition methods.
Are you ready to start your own customer acquisition efforts? Let's look at some of the most proven techniques used by brands around the world.
1. Email marketing is one of the most profitable types of marketing. According to Statista data, brands in the retail, e-commerce and consumer goods industries achieved a massive return on investment (ROI) of $45 for every dollar they spent on email marketing.
You first need to build an email list. You can do this with pop-ups and newsletter signup forms on your website, as well as contests and giveaways on your website and social media.
Once you've built your list, you can build relationships with leads through email in many ways, including:
Newsletter. Inform your customers about what's new in your company. Discuss news and new products and be creative with content that gives a look behind the scenes, for example how your products are made and who your team is.
Promotions. Is there a sale or event coming up? Generate interest via email.
Transactions. Use the registration and purchase confirmation as an opportunity to sell more goods, upsell and cross-sell.
2. Content advertising
//"Content is king," as you may know. Especially in today's world where people spend hours a day on websites, social media, and streaming services.
If you want to grab people's attention, pique their interest, and get them to buy, you need a good content marketing plan.
Your content marketing strategy may include:
Blogs. Write helpful and interesting articles about your company, your products, and things related to your products. For example, if you run a cosmetics brand, you can post skincare tips and makeup tutorials on your blog.
Social media. Create posts, videos and other interactive content that is related to your brand. Make sure to back this up with user interaction – for example, respond to every comment and leave comments on other posts to stand out.
Other options include podcasts, print publications, apps, press releases and more.
3. Influencer sponsorship
Influencer marketing is a huge industry, especially on social media apps like Instagram, Facebook, and TikTok. Brands partner with influencers to promote their goods or services through this channel to attract customers. An influencer, by definition, is a person or thing online that has a loyal, engaged following.
By working with the right influencers—those who are in your niche and relevant to your brand—you can reach hundreds or thousands of potential customers.
Discover your industry-specific marketing course: https://easymarketingschool.org/courses/
Lyricist: Kamran Tagiyev
Voiceover author: Jeremy G.
Author of the animation: Asad Asadzadeh
Sound editor: Mahluga Taghiyeva
Project Manager: Kamran Tagiyev
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