A Hubspot research recently revealed that within the last five years the cost of acquiring new customers has more than doubled, with companies spending more on their marketing campaigns than ever before.
Additionally, it is no longer news that the proliferation of businesses across different industries has nearly made brand loyalty a thing of the past, with potential customers spoilt for choice when they’re ready to buy.
In the middle of these hoaxes, however, the best brands have found a way to sharpen their customer acquisition strategy, while at the same time making the most out of their existing customers.
In this article, we’ll go over ways that your business can enhance your customer acquisition and retention strategy.
What Is Customer Acquisition?
The definition of the term “customer acquisition” is as simple as it sounds. It is the process of getting new customers for your business or turning once potential prospects into paying customers.
These potential prospects are usually of two types.
The first category includes those who are interested in the products you offer but are not aware of the existence of your business. The second category also includes customers from the same category, but this time, coming to your business from competitors.
Either way, the motive behind implementing a customer acquisition process is to get new customers and increase revenue for your business either in the short or long-term.
Customer acquisition is a vital step for every business owner, hence the need to understand exactly how it works.
Why Do You Need A Clear Customer Acquisition Process?
While businesses may struggle to come up with a streamlined process for acquiring customers, there is no doubt that defining such a process is necessary.
For one thing, a clear customer acquisition process allows you to identify exactly what methods you’ll be adopting as well as potential obstacles that you might encounter along the way.
Additionally, defining a clear customer acquisition process leaves you with an effective blueprint that you can implement at any time and even sell to other businesses in your industry.
Benefits Of Customer Acquisition
You may not have wondered why it is vital to expend a lot of energy and resources towards acquiring new customers. But reminding yourself of the reasons behind going down that lane could make you more determined to achieve the right results.
Beyond the obvious, here are two primary benefits of customer acquisition:
- Increased revenue generation to spend on employee salaries, marketing costs, and growth strategies.
- It provides a roadmap for business scalability and traction, information that comes really handy when a company is looking to onboard investors, influencers and partners.