Should you focus on customer acquisition or customer retention? What many marketers fail to understand is that they work better together. Still, 44% of businesses focus more on customer acquisition and 18% focus primarily on customer retention.
The entire marketplace revolves around CAC or Customer Acquisition Cost. A CAC is the total amount of money spent divided by the number of new customers acquired in a particular time-frame.
Website conversion (89%) is the most used marketing channel by B2B and B2C marketers, followed by email marketing (81%), social media marketing (79%), direct mail (66%) and SEO and PPC marketing (65%).
But, have you ever thought how much money you can lose even if your expected conversion rate is deviated by 1% because of an improper customer acquisition strategy?
You, of course, have thought about this and that’s why we are here today!
Here are four of the most important customer acquisition mistakes that have a direct impact on your conversion rate:
First-time visitors are not loyal customers:
2.35% is the average conversion rate of a website landing page while 5.31% is the percentage in the case of the top 25% of websites. There are hundreds of different sales magnets but no guarantee that any would result in a happy customer.
Also, increased website visits can be largely made up by a re-targeted audience. Venture Beat has revealed that, in companies with 1,000 or more employees, 14%spent more than half of their entire marketing budget on re-targeting.
What’s the solution then? Use different types of CTA buttons to segregate your audience by their purchasing behaviour and buying intention.
Here are a few quick tips for turning your first-time visitors into customers:
- Offer a service or product for free: and make sure it’s actually free without any hidden terms. Very few things irritate customers as much as this one!
- Leverage customer or client testimonials: This will not only help in building trust but it will also increase your search ranking and web visibility.
- Highlight the live chat feature: Surveys suggest that customers find live chat to be the most useful communication when they need assistance.
- Leverage all types of social proof: Customer review, client logos, product demo videos, FOMO and exit overlay: all of these work wonderfully.
Don’t focus on ROI straight away:
Yes, a proper customer acquisition technique will give you more leads and more business. But, if you expect to see results from the very first day, we are very sorry to burst your bubble.
If you start spending $500 a day in your marketing, you should not expect to see a proportionate number of leads from the very first day.
After a customer discovers your brand and product, there will be quite a few stages that they need to go through before they make their final purchasing decision, for example, competitor analysis, price evaluation, discount or promo code influence, peer group influence, etc.
Initially, instead of only following the ROI graph, you should focus more on quality scores, CTR, decreased bounce rate, dwell time, etc.
Being too pinch-penny? Don’t be:
Most marketers are not sure how much money to spend, for how much time and what ROI percentage should they expect.
Also, business is a sphere of continuous change. Most marketers fail to understand that they need to regularly change the amount of money spent and their investment strategy.
Here are a few tips for using your online marketing budget most effectively:
- Instead of investing in multiple marketing channels, start off mix and matching multiple strategies and building customized ones. SEO and content marketing can be a good option.
- Target your audience remotely and precisely. Targeting the wrong audience will be a waste of money.
- Don’t continue investing in something that is not working.
- Repurpose your content from multiple channels.
- Don’t hire an agency that charges too much or too little.
Follow trends but don’t follow them blindly:
Instagram trendsetters, Periscope Social Media Influencers, brand mentions or customizable chatbots: all are the latest social media trends of 2018. But, are they all relevant to you?
80% of all social media users follow their favourite brands on social media. Still, 89% of all social media posts are ignored.
Lack of proper targeting and improper use of marketing channels for specific market needs are responsible.
It’s not advisable to start with Google AdWords as it is expensive and needs a considerable amount of practice before jumping in.
Also, every platform is not suitable for every type of business. If you handcraft customized wooden ornaments for couples, LinkedIn wouldn’t be the best platform to market on.
Yahoo and Bingo still hold 20% of search traffic and are inexpensive in comparison with Google. Therefore, another option is to market yourself on alternative search engines.
Here are a few tips on how to find the most suitable platform to market your business:
- Use your buyer persona to segregate your target audience by age, demographics, occupation and other primary points to narrow down your target audience as much as possible. The audience group your competitors are targeting can also be a good reference.
- Let your audience know your objectives on social media and leverage the power of word-of-mouth marketing.
- Identify and analyze your budget, skills, and resources.
Every sales process should start by pre-qualifying your sales leads. Though customer acquisition is the base of every sales funnel, spending your budget only on the acquisition and leaving nothing for further retention will lead to failure. Therefore, balance is the key, bro!