Technology, paid ads, performance marketing, and the internet have made marketing easier for all-sized businesses. The downside of that, of course, is that competition has risen also. And with that, the cost of customer acquisition. Because everyone has access to all common marketing channels, the cost of B2C and B2B marketing has increased 60% over the past five years. Let’s dig into customer acquisition and why your business – regardless of industry – needs to embrace it.
Increase in cost of marketing over the past 5 years.
What Is Customer Acquisition?
Customer acquisition is a process by which your business acquires new customers. It can be confused with marketing, but they are separate but related processes. Marketing is the process of building awareness of your product, service, or business. Customer acquisition is what happens when a potential customer purchases a product or clicks a link. The goal of marketing is to promote and push the company towards customer acquisition.
Remember from your Marketing 101 class how leads enter the top of the funnel when they are aware of your business, and as they learn more and become more convinced to purchase, they move down the funnel until they reach the conversion stage. Coming back to you?
Lead generation represents the beginning of the funnel, where they first enter. Customer acquisition is a broader segment of the funnel and includes the top and middle of the funnel. Think lead generation and acquisition combined.
Why Does Your Business Need Customer Acquisition?
Simple! Without new customers, you can’t grow your business. While repeat and loyal customers might be your highest revenue stream, without acquiring new customers, eventually, your business will fail to thrive. Every business needs a steady stream of new consumers to ensure they succeed.
Ok, so now we all agree your business needs customer acquisition. What type of marketing channels are your best bet? Every organization is different, but the most common channels are:
- Content Marketing
- Social Media
- Direct Mail
- Website SEO
- IP Retargeting
- Search Engine Marketing
- Email Marketing
- Webinars & In-Person Events
Customer Acquisition – Outsource or Keep In-House?
That’s a difficult question for many businesses, particularly smaller ones. With only so many hours available in the day, many business owners don’t have the time to write blogs, research a mailing list for prospects, or set up pay-per-click ads with Google. So how does a business compete successfully with customer acquisition?
The answer for many is to outsource their customer acquisition to a company that specializes in lead generation and performance marketing. Think of it this way – you pay a company to do the heavy lifting for you. They research your audience, create resources and ads to draw the ideal consumer in, and then boom – they pass off qualified, interested consumers right to your door. You spend less time struggling through blogs, SEO, and email blasts and instead do what you do best – help your new customers with the services and products your company offers.