With customer acquisition, companies try to win new customers for themselves. But how exactly does a customer acquisition process work?
We’ll show you tips and strategies for your effective cold calling and what to look for when making a phone call.
What does customer acquisition mean?
Customer acquisition, also known as new customer acquisition, is the process of making new customers aware of you and ultimately attracting them to you. The goal of this process is to develop a systematic, sustainable acquisition strategy that can evolve with new trends and changes. Customer acquisition is important for businesses of all ages and sizes.
It allows the company:
- Make money to cover costs, pay employees, and reinvest in growth.
- Provide proof of traction to external parties such as investors, partners and influencers.
Systematically acquiring and converting new customers keeps companies healthy and awake and has a positive impact on investors.
Customer acquisition costs are calculated by dividing the marketing costs associated with a particular campaign or effort by the number of customers acquired from that campaign.
The formula is:
Customer acquisition cost = MK / GK, where:
- MK are the marketing costs
- GK stands for won customers.
The 12 biggest mistakes you must avoid at all costs when making cold calls
1. Assumption that first-time visitors become loyal customers
Someone visits your innovative website after attending a PR event. What now? Increased website traffic is not enough. Sophisticated customer engagement includes retargeting. In fact, 14 percent of companies with more than 1.000 employees in 2018 alone spent more than 50 percent of their budget on retargeting.
2. Impatience with ROI
New products take time to develop. If 1.000 euros in marketing one week later does not result in a return of 1.000 euros, then you should not make drastic changes. In many cases, the path to customer acquisition is lengthy. From the moment a new potential customer discovers your brand until they decide to buy, they are likely researching competitors, checking for reviews, and looking for discounts or promotional offers.
So be patient. Short-term traffic can be deceptive. Resist the urge to make risky decisions based on misleading small data sets. If ROI doesn’t look satisfactory after a short period of time, you should look at other metrics such as click-through rates, quality scores, bounce rates and time spent on your website from visitors coming from a new advertising channel.
3. A one-dimensional strategy
While it’s important to figure out which marketing channel is the most successful with your current audience, don’t settle on just one channel or strategy. Especially today, when digital media has opened up a world of opportunity and cross-platform channels, the wider the net you cast, the more likely you are to get better results. Don’t just rely on social media. Or simply SEO. Or just Content. Work on everything.
4. The first impression has been undervalued
As with many things in life, first impressions are crucial when competing for the attention of potential customers. As the saying goes, you only have one chance to make a positive first impression. It’s great that your company is offering a new, unique product or service, but what’s the game plan to keep potential consumers engaged long enough to eventually drive conversions?
Whether through a website, mobile app or other platform, the goal is to make the experience as simple and descriptive as possible while triggering a sense of excitement. Use strong visuals and engaging content to present what you offer and why it ultimately benefits the customer.
5. Short-term results drive the overarching strategy.
A successful customer acquisition strategy is an investment in time and money. Your product or service wasn’t created overnight, and the same logic applies to attracting customers. It’s essential to give the strategy enough time to fully develop, so don’t reach for the panic button prematurely if the hoped-for results don’t happen within a week or two.
Rather, companies should think of it as a long-term game, as potential customers are likely to take the time to research how your offerings compare to the competition. Of course, if results are slow to develop beyond this immediate time frame, it’s time to rethink the overall strategy and tweak certain metrics accordingly.
6. No maximization of customer data
A great place to start when defining your target audience is to look at your existing customers. This helps better define key parameters such as acquisition costs, consumer behavior, interests and social media tendencies. The goal is to figure out which marketing channels are the best fit for existing audiences and target potential customers accordingly.
7. Lack of transparent price information
97% of consumers research products and services online before making a purchase, typically using an average of 8 media sources to gather information before making a decision. If the information available on your website isn’t clear, concise and comprehensive, your potential customers may consider buying from your competitors instead.
8. No coordination of sales and marketing
Make sure your marketers and sales reps are on the same page and you address frequently asked customer questions in your content marketing. Lack of synergy between these key areas is often a failure for vendors.
9. Efforts are directed at the wrong target group
The target audience is important for almost all areas of your business. It’s a profile of your ideal client. Depending on your business, you may have a few different "buyer personas". Your buyer personas can be based on data from your existing customer base, market research, etc. based. Once you have defined what your ideal clients look like in terms of income, consumer habits, age group, interests, etc. look, you can more easily formulate your business strategies.
For example, you can create content that appeals to a specific group of prospects or customers who share the same buyer persona. Similarly, you can revise your pricing based on the income and spending patterns of this group of people. If you don’t define your target audience, you can waste your marketing budget on the wrong groups of people, resulting in low conversion and retention rates.
10. The company is not up to speed on search engines and social media algorithms
Your website was SEO optimized at its launch and then you just sat back and relaxed – this mistake could cost you a fortune. Search engines and social media platforms change their algorithm from time to time. Lately, Google is gradually introducing mobile first indexing. If your website doesn’t automatically adjust or the mobile version doesn’t display the full content as the web version, your website’s ranking may be affected because of this algorithm update.
Similarly, Facebook has changed its algorithm and the new updates prioritize content from friends and family, as this type of content tends to facilitate meaningful conversations and interactions.
11. Personalization is missing
Personalization doesn’t just mean putting your customer’s first name in your email. It also means providing a personalized experience throughout the customer journey, including marketing.
12. The company is giving up too quickly
Just because you don’t succeed the first time doesn’t mean you can’t try again. When it comes to attracting customers, you have to be aggressive and persistent in the right way. Of course, this doesn’t mean you’re harassing customers to buy your products or services, but it does mean you’re not giving up after just one try.
If your initial attempt fails, you should see what the reason is and develop a different strategy if necessary. By retargeting leads, you can eventually turn them into paying customers who return to your business again and again.
Tips, tricks and strategies for effective customer acquisition
1. Define your target audience
The first and most important step you need to take is to identify the potential target audiences for your business. Chances are, your product is the perfect solution to a problem faced by a certain demographic of consumers. It’s all about figuring out who they are and focusing customer acquisition primarily on them. If you don’t have a target customer in mind, it’s likely that you won’t market your brand effectively.
If your offerings do not meet a universal need, you are better off finding a niche market for yourself. Conduct complete market research and try to figure out who and how you should market your product to in order to attract new customers. This knowledge can only be gained if you do your market research with due diligence. It forms the foundation of all your efforts to attract new customers.
2. Find out where your target customers hang out
The next item that should be on your list is to find out where your target customers are located. To improve the chances of customer acquisition, you must always be where your target customers are. This applies to both the online and offline presence of your customers. Once you have identified the places and locations that your customers frequent, you can develop marketing strategies based on this information.
For example, if your target customers visit social media websites, you need to create a social media platform for your brand so you can establish and maintain constant contact with your target customers. If you are having a hard time finding your target customers, you should try startup communities and even meet-up groups. Targeted individuals, especially those looking for a solution to their problem, tend to visit such groups.
Once you have found your target audience, you should avoid promoting only the products and services you offer. Work to seriously engage with these users and add value. This will lead to great word of mouth recommendations that will boost customer acquisition.
3. Embed video content
Video marketing is on the rise. 81% of companies are using it, up from 63% last year. That’s because 97% of marketers find video content useful in improving customers’ understanding of their offerings. Another 76% found it helpful to increase web traffic and sales. The next step should be to develop multimedia content to promote your brand and facilitate customer acquisition. When it comes to multimedia marketing, you should start creating video content.
Video content should not only be interesting, but also add significant value to your customers. If you’re having a hard time finding a good balance between entertaining and valuable videos, you can use both variations. Post the videos on your website. Don’t forget to share the links to the videos on your social media platforms. You want to target users who follow you on social media to find your videos and end up exploring your website out of interest.
4. Give away free products
Unfortunately, many consumers need far more than words and promises to convince them to pay for a product or service. More difficult consumers won’t even be swayed by word of mouth. To attract these people as your loyal customers, you need to let them experience your products or services in some way or form. Since these people absolutely refuse to buy your products or services, you need to offer them free stuff.
No matter how persistent someone is, it’s very difficult to turn down free stuff. Ideally, once these people have tried your products and services, they will see the value that your brand has to offer for themselves. Therefore, make sure the free content you offer is of the highest quality. Giving away low-quality items will not reflect well on your brand, as potential consumers will believe that all the products and services you offer are of the same quality as the free stuff.
5. Spread the word
If possible, you should use tools to track the referrals your brand receives. With tools like these, you can not only measure the number of referrals you receive, but also determine if word of mouth is positive or negative. This information will give you the opportunity to make changes.
6. Produce high quality content on a regular basis
A good strategy for attracting customers is to establish yourself as a trusted expert in a niche or industry. Unfortunately, this can be incredibly difficult for startups that have little to no reputation. One way to establish yourself as an expert is to produce high-quality content on a regular basis.
These days, there are many ways you can publish content on a regular basis. Some channels include blogs, social media websites and even the tried and true method of email newsletters. Whitepapers are another great way to establish your brand as trustworthy, especially if you’re in a more technical niche or industry. Ideally, you should choose multiple platforms to publish your content, even if you publish the same content on each platform.
Content marketing is by far one of the most effective and sustainable strategies for customer acquisition. Think of it this way: it helps you establish thought leadership in your industry or niche. And that consumer trust in your brand is half the battle. Content marketing helps you win this battle. From a lead generation perspective, content marketing is three times more effective and 62% less expensive than typical outbound marketing. Starting a blog for your business, sharing content on social media, and publishing white papers are great ways to make a name for yourself inexpensively.
7. Create optimized landing pages
Among other customer acquisition strategies, landing page optimization is definitely one of the most effective. Landing pages help lead consumers to your product or service. An effective landing page not only provides valuable information, but also includes a compelling call-to-action that facilitates conversion.
A/B testing can help you optimize your landing pages and improve them dramatically. It goes back to knowing what your customers expect from you. You need to be able to anticipate their needs and then meet them. You can use different tools to test your landing page designs. Try pages without navigation bars, pages with different fonts, CTAs and elements. This is an iterative process and you should keep experimenting to see what helps bring in more customers.
Co-marketing or cross-promotional activities are highly beneficial for attracting customers. The goal is to form a strategic partnership with a company that either has a product that is complementary to yours, but does not compete with it; or whose customers have a similar profile to yours. Your brand gains access to a new audience, which leads to brand awareness and leads, and your customer acquisition costs decrease.
Since content is still king, the content you produce in partnership with another business will depend on the product or service you offer and what appeals most to your potential customers. There are many options – webinars, e-books, conferences, video series or podcasts, and data-driven research reports – and you can get creative, too.
9. CTA optimization
It’s important to keep your website up to date. This means you need to constantly review your call-to-action buttons (CTAs). Just like banner ads, visitors will get tired of reading the same CTAs on every website they visit. Even if you have a serious technical product, adding a little humorous text or changing the button color might convince someone to click on it.
It’s important to test different elements of your website and CTA button placement. Don’t rely on instinct. Check the data to see how your potential customers are responding. The advantage of implementing this strategy is that it does not impact customer acquisition costs.
10. Start a blog
Blogging is a highly recommended acquisition method for businesses of all sizes, industries and audiences. Running a blog allows you to explore different topics, expand your knowledge in your industry, and build authority with your readers. Blogging also gives you constant opportunities to connect with your audience, whether it’s through a graphic they can bookmark later, a question they can answer in the comments, or an enticing call to action they can click on.
If you decide to blog, make sure you have sustainable resources in place. Your blog writers can be dedicated employees, freelancers or guest writers. A graphic designer and editor can help ensure your content is optimized for both search engines and the reader experience. Finally, adding a blog to your website is relatively easy, depending on your hosting platform.
11. Ebooks, guides and other content offers
Ebooks, guides and other types of offers represent a different type of content marketing because they typically contain deeper, more valuable content. For comparison, while a blog post might include about five different email subject lines that increase open rates, a similar guide would take a step back and cover the complete basics of email marketing strategy. See how the latter provides greater and deeper value to readers? Readers must share personal information, such as emails and names, to access the content. Content offers are an important part of customer acquisition and can help you get more leads from your blog and content marketing strategy.
The process of creating content offers is similar to the blog, but may require more specialized resources. While blog posts typically involve a repetitive writing and design process, e-books, guides, whitepapers and other downloadable content all have their own purpose and production process. Again, you can create these with internal or external resources, but be aware that they may require extra attention and a unique promotional plan.
Acquiring new customers – overview of the most important methods of customer acquisition
Your customer acquisition strategy should include multiple channels working in parallel to attract potential customers. Using multiple strategies will help you increase your chance of getting conversions. The possibilities for strategy combinations are almost endless. You can use any number of strategies to create a campaign that works for your business.
Here are seven methods that are effective for businesses in any industry:
Search engine optimization (SEO) is one of the most important methods of customer acquisition. This strategy will help you drive traffic to your website to get more leads and conversions for your business. SEO involves optimizing your website to rank better in search results. Considering that 75 percent of people don’t go past the first page of results, it’s important that you optimize your site to land on the first page.
For example, if you’re a dentist in Hamburg, Germany, you should have your website appear in search results for "dentists in Hamburg, Germany." Display. This method goes beyond traditional advertising methods like TV and radio ads. With SEO, you’re accurately targeting people who are interested in your business based on the keywords they use to find you. It helps you target a more specific audience, rather than advertising to a broad audience in hopes that someone will find your ad and need your products or services. So with SEO you make it easier for potential customers to find your business. Someone actively searching for a dentist in the area will find your company’s listing relevant and click on it.
This customer acquisition strategy does not require you to buy outdoor advertising space. You do the work on your own website and optimize it for SEO to improve performance. SEO is a long-term strategy to achieve valuable results. As long as you continue to optimize elements on your website, you will continue to drive traffic and help your business gain leads. The only downside to SEO is that it takes time to get results. You won’t see an immediate increase in your customer acquisition rate, but it will slowly produce results.
2. Pay-per-click (PPC) advertising
Even if you’ve never run a pay-per-click (PPC) ad campaign, you’re probably familiar with how these ads look in search results. These are paid ads that appear at the top of SERPs. You are using the word "ad marked to make clear that it is paid advertising.
PPC works similarly to SEO. You serve your ads based on specific keywords and phrases users are searching for so you can reach a relevant audience. As the name implies, you only pay when someone clicks on your ad. You don’t pay for impressions. You won’t pay a cent until a visitor clicks on your PPC ad and visits your website. Your business sets the amount you have to pay each time someone clicks on your ad, so you have control over your ad spend.
This makes PPC a budget-friendly option for any business. PPC campaigns are popular with businesses of all sizes because they give you full control over your budget and targeting. You reach the right people at the right time, and get them to buy your products. Companies like this customer acquisition strategy because they start attracting traffic and leads as soon as they launch their campaign. It means you can generate leads within minutes of creating an ad. This makes PPC one of the most efficient and cost-effective marketing strategies for acquisitions.
3. Content Marketing
Content marketing is a powerful customer acquisition strategy that allows you to attract leads looking for valuable information. This method helps you provide information to your audience, but ultimately helps your new visitors learn more about your business and convert them into customers. There are many forms of content. These include informational websites, blogs, infographics, videos and e-books. You can cover numerous industry-related topics that provide your prospects with valuable information they are looking for.
Let’s say you own a clothing store. With summer just around the corner, your audience is looking for summer look trends. To help your audience get this information, create a blog post called "7 Must-have Looks for Summer". When someone is looking for trendy summer fashion, they will come across your blog and read your ideas. From this point on, you lead him to check out your business and eventually to buy your garments. While the topics covered vary by industry, content marketing is a great customer acquisition strategy for any business.
To use this method for your business, first identify industry related topics that are of interest to your audience. Once you have your topic, you will create helpful content around that topic and post it on your website or blog. By providing helpful information to your audience, you make a great first impression on your audience. They get the helpful information they need and you bring them closer to your brand.
Content marketing works great with other customer acquisition methods like SEO. It goes hand in hand with this method, as it involves identifying keywords that your potential customers are searching for and creating helpful content around those keywords.
4. Email marketing
Email marketing requires people to give you permission to send them updates. Essentially, you have to have permission to contact them first, which defeats the idea of using email marketing to attract new customers. However, this strategy is a great way to stay in touch with potential customers until they are ready to buy.
Email marketing helps you deliver valuable information to your audience. When you create content, you can send it to your subscribers to help them engage and become more familiar with your business. It’s also a great opportunity to help your audience learn more about your business and your products or services.
You can use the content you send in emails to engage potential customers in a helpful way. It’s an opportunity for you to give them information they need or want to see. If they decide to buy, you have an advantage over your competitors because you’re already a trusted brand that your audience knows about.
Email marketing allows you to personalize your messages and content to individual subscribers. If one of your subscribers has an interest in a particular product or service, you can tailor your email content specifically to that product or service. Your subscribers get a customized experience, making them more interested in your business.
While email marketing isn’t quite an acquisition marketing strategy, there are ways to use it to drive new sales. With customer referral programs, you can entice your current subscribers to invite friends, family and colleagues to visit your business.
Email referral programs provide a benefit to both the referrer and the new customer. For example, a mechanic can offer discounted rates on services to subscribers who refer people to their store. In return, newly acquired subscribers receive a free oil change for joining.
5. Social Media
Social media platforms like Facebook, Twitter and Instagram are rapidly growing in popularity. Although these platforms were originally a great way for users to stay in touch with family and friends, they have now become valuable marketing tools. Other platforms, like LinkedIn and Pinterest, have grown out of the popularity of these other social media sites. These platforms provide a great opportunity for your business to publish content that relates to your target customer’s interest and encourages them to build a relationship. Many people use social media to connect with businesses and share their experiences. As a result, many businesses are using social media as a customer service tool.
Social media is a free way to target your audience, but it also allows you to run targeted advertising campaigns for your business. If you run online campaigns, you’re probably familiar with selecting your audience by age, gender and location. With social media platforms, the options are much more advanced. On Facebook, for example, you can target leads based on their interests.
Twitter lets you advertise to users based on keywords they’ve used in their tweets. LinkedIn allows you to find people based on industry, job title and skill set. These different options allow you to reach the users who are most likely to be interested in your business. This way you can get more out of your advertising budget because you reach the right leads.
6. Customer testimonials
Customers know you will do everything in your power to build your brand in a positive light. You create informative and helpful content and market your business to them. As a result, your audience doesn’t expect you to provide an unbiased review of your own products or services. However, this is what they expect from other customers.
Customer referral programs are a great way to encourage your current customers to tell their friends and family about your business. As mentioned earlier, email marketing is a great way to build a customer referral program. A good way to do this is to offer an incentive. It’s not mandatory, but it sweetens the deal for your audience. It encourages more people to take action.
7. Free trial versions& Downloads
People like to get free stuff. If you offer them free stuff, they’re more likely to check out your business and see what you’re offering. Free trials and downloads are therefore a great way to get leads for your business.
If you provide software or offer an exclusive service, a free trial is a great way to attract new customers. It allows them to try your product without committing to it. If they like your product, they will decide if it is worth the investment. This strategy works for all types of industries. A perfume company can offer free samples to potential customers. An IT company can offer an informative brochure on technology topics that interest its audience.
Guide to phone canvassing: tips and tricks on how to do it right for effective phone canvassing
What is telephone canvassing?
Phone canvassing is a form of telemarketing in which a salesperson attempts to do business with potential customers who have not previously expressed interest in the salesperson’s product or solution. For outbound sales teams, this path is often the first and arguably most important step in creating sales opportunities. The goal is to make initial contact with a person or company that fits your ideal customer profile, briefly introduce your product or solution, and determine if there is enough interest to move forward.
Why is telephone canvassing so effective?
Phone canvassing gives sales reps the opportunity to connect with prospects on a more personal level than any other sales technique. Since you’re interacting directly with prospects on the phone, you have the opportunity to learn a lot about your prospects. In one call you can single call you can measure the interest in your product and get clues about the needs and expectations of customers.
Tips and tricks
Focus all questions on your customer, not yourself
During your first contact with the potential customer, you should focus all your attention and questions on the potential customer. Don’t just talk about who you are and what you do, or about your business or other businesses. Remember, it’s about the customers, not you. A customer-centric sale is a professional sale. You only sell successfully if you talk to your customer about his wants and needs.
Before you ever make a phone call, you should prepare a few things. Have an understanding of who you are calling and why you are calling them by knowing their name or company name, address and the city they are in. Prepare a simple script with a greeting that grabs attention. Write down your question or pitch and make note of either a face-to-face appointment or a follow-up call for a full presentation so you can close the deal and sell your product. Script writing takes some practice. If you’re just getting started, you should go online and do some research.
Smile when making a phone call
Although this tip seems simple and basic here, it’s not always that easy. If you want your prospects to listen to you, you should be positive and enthusiastic on the phone. Sales is simply a transfer of enthusiasm from person to person, so make it your goal to transfer your emotion to the person on the other end of the line. If you smile when you talk to someone on the phone, it can instantly change your voice and demeanor and allow you to get a better result. The consumer often reflects your tone and positivity.
Focus on the right prospects
Telephone canvassing is a difficult process. You don’t just pick up the phone, call your prospects and get them on board. It takes several calls, messages and follow-ups before they agree to a meeting or even more. When there is so much work that goes into a phone call, it is better to call those who actually see a need for your product. You need to prioritize leads that are most likely to respond to your approach.
Once you’ve selected your prospects, the next step is to do some research and learn more about them. You have very little time to engage prospects during a call. Research ensures that you don’t waste time asking for basic details that you could have learned beforehand – such as z. B. The name of the potential client and for B2B calls, the qualifications, company size, industry, location, etc.
Plus, asking such questions over the call will only annoy your prospects. Good research should help you gain valuable insights that can be used to steer the call to your advantage and open the door to many opportunities you wouldn’t have even anticipated. Research is the most valuable technique for developing rapport with prospects during the call.
Set a goal
Before you start the call, you should come up with a clear goal that you want to achieve by the end of the call. While the ultimate goal is to close a sale, the first goal should be to focus on prospects who agree to another phone call or meeting. It can happen at different times, depending on the prospect. Some may agree to meet right away, while others need convincing. A clearly defined goal allows you to coordinate your time and resources to make the most of it. Goals can give you a long-term vision and short-term motivation.
Use a script
While some salespeople dislike scripts, preferring to respond based on the situation, using a script is a good practice, especially if you’re a beginner. Not always will your cold calls go the way you want them to go. A script is like a roadmap that can serve as a guide on how to navigate the conversation. Scripts also help you steer the conversation in the right direction, as they have a series of dialogues that set the tone of the conversation. Apart from that, have answers to the most common objections of the potential customers, so you can address all their concerns and objections directly and credibly.
Choose the perfect time
Choosing the right time could be the difference between a successful call and an unsuccessful one. No one wants to be disturbed when they are busy; and certainly not by someone they don’t know. So you need to carefully choose the time you want to call your prospects. While studies say the best time to call is between 4:00 p.m. and 5:00 p.m., the reality is that every potential client has their own schedule. There is no one-size-fits-all time. However, it is possible to keep a call log that will help you determine the ideal time to call your typical potential client.
Avoid or block out distractions
Make yourself comfortable wherever you are. There may be people moving around, other sales people making calls, etc., But you need to get into a workflow that allows you to overcome the distractions.
Tips for blocking out distractions: Wear headphones and disconnect from the outside world. Focus solely on the prospect and their voice Have your research ready, a notepad – anything so you don’t have to look for things in the middle of the call.
Do not try to sell immediately
One of the most common cold calling mistakes is overwhelming the prospect on the very first call. Consider the fact that you’re already invading your prospect’s schedule. So the least you can do is not bombard them with details. Instead, you should take it one step at a time. Note: Remember that phone canvassing is not a quick-fire process. It’s just the first step in a long series of activities that will lead you to a sale.
Use the person’s name
Studies have shown that a person’s favorite word is their own name, so get your prospect’s name as soon as possible and write it down (even better, know it beforehand). Now use it at least three times during the call. It may sound very simple, but this will help you build a relationship with your potential client.
Although it is an effective technique, cold calling can be very frustrating at times. You face rejections on a daily basis because no potential client will say yes to you on the very first call. Accept the fact that rejections in phone canvassing are part of the job. It actually helps you work on yourself, learn and become a better salesperson.
Analysis after the call
The process of cold calling doesn’t end when you end the call. The focus now shifts to analyzing the calls made to map further progress. After you’ve reached your daily quota of calls, it’s time to take stock of how you’ve been doing. Analyzing your calls, will give you feedback on what is working and what is not. This way you can build on techniques that work and eliminate those that don’t.
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