It’s no secret that businesses need new and returning customers to grow their company and revenue. Customer acquisition requires specific tactics to ensure the cost of acquiring customers is not budget-breaking. But how do you do this effectively? Consider taking a deeper look into your data to see if there are signs that you may have a problem with customer acquisition. Read on to learn how you can improve customer acquisition across channels.
But First, What Is Customer Acquisition?
Customer acquisition happens when you acquire new customers through your marketing channels. As a business, you should constantly be educating both your potential and current audiences about your brand and thinking of ways to push them to convert.
Customer Acquisition vs Customer Retention
Customer acquisition happens when you acquire a customer for the first time. Finding new customers takes persuading and convincing them to buy your product or service. Once you’ve acquired this new customer, nurturing them takes time and money out of your marketing budget.
When it comes to customer retention, it takes less convincing since they already believe in your brand, product, or service. Keep customers engaged with tactics to keep them coming back.
While acquiring new customers is the point of customer acquisition, it’s also a good idea to take into consideration your conversion rate, as this can help determine whether or not you may have a customer acquisition problem.
Signs You Have A Customer Acquisition Problem
Customer acquisition is important to keep a brand growing and moving in the right direction. With new customers coming to your brand, this can help prove that the company and brand are successful outside of stakeholders and investors. Ensure you know and can identify key signs that could lead to a customer acquisition problem.
Not Targeting the Right Stage in the Funnel
Ensure you’re targeting customers with the right content. Potential customers who are still in the awareness stage do not want to be persuaded to buy your product or service immediately. Make sure to educate your potential customers on your brand and offerings and continue to follow them through their journey.
Low Conversion Rate
Before looking at your conversion rate, ensure you have an industry benchmark to align your business with. According to Search Engine Land, the average conversion rate is around 2.35% across industries and businesses. Set a goal for your conversion rate, but keep in mind industry standards.
Struggling with Customer Retention
Efforts in retaining current customers should be included in your marketing plans, as they have already converted with your brand and have shown interest. Now, you have to keep them engaged with your brand and hopefully turn them into an advocate.
Once you’ve caught their attention or their business, continue educating your customers. Not only will you be enticing them to stay interested in your brand, but it will position you as a thought leader in the industry. Here is where you can work on creating brand advocates to help influence others to believe in your brands and services.
Signs You May Need a Conversion Audit
Customer acquisition is a requirement for a brand to be successful. Whether you consistently have new customers involved with your business or you struggle to gain new prospects, take a look at these factors to see if you need a conversion audit.
High Traffic, Low Conversion
If you are still seeing traffic to your site but seeing a drop in conversion rate, or no conversions at all, it may be time for a conversion audit. It may be that potential customers are coming to your site but are unable to easily continue into the decision-making funnel due to unclear calls-to-action, poor user experience, or it could be that your tracking is not set up correctly.
Have your sales become stagnant? Look at what happens with leads or form fills after they are completed. Who is following up with potential customers? Leads need nurturing which can take time. If no one is following up, chances are you won’t see any increase in sales.
Low Engagement on Ads
If your ads are not performing like you thought they would, consider who you are targeting and what message is the ad conveying. If you were in the customer's shoes, would you click or engage with your own ad?
Low Engagement on Site
Your site should still have constant traffic even with a flux in conversion. Take a deeper look at your website if no one is staying on or clicking through your pages.
Tips for Retaining Customers After Acquisition
Get your newly acquired customers to stick around after you’ve successfully acquired them. Make sure your messaging is cohesive and aligns with their journey every step of the way.
Ensure Content is Right for Each Stage of The Funnel
When writing ad copy or content you’re pushing out to customers, contemplate how the message is conveyed for each funnel stage. You don’t want to give new customers content or call-to-actions around purchasing right off the bat. Use that space to educate users on your brand and product to work their way through the funnel.
Be smart with your conversion budget. Utilize your budget wisely and retarget customers who already know and love your brand. Not only will costs be lowered, these customers are more likely to convert since they already trust you and your brand.
If you’re still having trouble converting on your site, how about a conversion audit? We can help. With our conversion audit services, Tallwave is able to help find where the problem lies and how to solve for it moving forward. Contact us today to learn more about a conversion audit for your business.