Customer Acquisition

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Customer Acquisition is the process of attracting and converting new customers to your business.1

It involves finding potential customers, getting their attention, and persuading them to buy.2

Purpose:

The primary goal of customer acquisition is to consistently grow a business’s customer base, which helps ensure a continuous flow of new revenue.

This growth enables businesses to expand their market presence, boost sales, and scale up.3

How It Works

Here’s how customer acquisition typically works:

  1. Know Your Audience: First, a business determines who will most likely buy their products. This involves understanding things like customer interests, age, and habits.
  2. Pick the Right Places to Advertise: The business then decides where to reach these potential customers, such as through social media, emails, or online ads, depending on where the audience spends their time.
  3. Make Enticing Offers: To grab the attention of potential customers, the business might offer special deals like discounts, free trials, or informative content that showcases the benefits of their products.
  4. Engage and Educate: The business interacts with potential customers by sharing helpful information and solving everyday problems. This helps build trust and show the business’s value.
  5. Turn Them into Customers: Now that the audience is interested, the business uses strategies to encourage them to buy, such as effective sales pitches or a simple online buying process.
  6. Keep Improving: The business keeps track of what works and what doesn’t, constantly tweaking its approach to get better at turning people into customers.
  7. Welcome New Customers: Once someone buys, the business helps them get started with their new purchase, ensuring they’re happy and understand how to use the product or service.4.

Example:

For example, a tech startup that creates productivity software targets small business owners with online ads and free webinars.

This is part of their strategy to gain new customers by introducing their brand and products to the right audience.

During the webinars, they offer a free software trial, which helps turn interested attendees into new customers.

This approach helps the company grow its user base and increase its revenue.

Related Terms

References:

1. Stewart, S., & Small, D. (2012). Customer acquisition: Definition, meaning, measurement, and examples. Amazon. https://advertising.amazon.com/library/guides/customer-acquisition

2. What is Customer Acquisition and why is it important?. What Is Customer Acquisition and Why Is It Important? (2023, June 16). https://www.hotjar.com/customer-acquisition/

3. Narsavidze, D. (2014). Customer acquisition in the context of digital marketing: Statbeat business case. https://www.theseus.fi/bitstream/handle/10024/84022/er%20acquisition%20in%20the%20context%20of%20digital%20marketing-Statbeat%20business%20case%20David%20Narsavidze%20IBl10.pdf?sequence=1

4. Bracks, A. (2012). Customer Acquisition: 465 Ways to Gain and Retain. United States: Xlibris AU. https://www.google.com/books/edition/Customer_Acquisition/n1oRBwAAQBAJ

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