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Customers are the lifeblood of a business whose strategic objectives are to maximize profits and minimize costs.
And for companies to achieve the goal above, they should have a reliable and flexible customer acquisition strategy in their digital marketing campaign strategies, such as pay-per-click (PPC).
There’re a million and one strategies out there. The tested and proven strategy is the one that relies fully on data insights.
However, there’s a way you boost your customer acquisition strategy.
It would be best if you had a tested and proven tool to crunch data to optimize your PPC campaigns for profitable customer acquisition metrics.
There’s an AI-driven application that’s inexpensive and can help you optimize your marketing campaigns for more profitable customers.
In this blog post, you’ll discover:
Before jumping right into the how-to guide, we’ll address the following question:
Customer acquisition refers to your business’s activities and actions to gain new customers.
A successful customer acquisition strategy helps you win new business, retain loyal customers, and improve profits. Remember, acquisition starts at first contact with a new customer and rolls into your strategy for retention. Customer acquisition covers the following:
Customers won’t always stick around no matter your retention strategy. And this means you need a way to fill the gaps and keep your business moving forward.
For every business, ‘customer acquisition’ meaning is different. But it’s related to the following three factors of growth, namely:
‘Get’ is the first part of the customer acquisition strategy process. You market your product or service through multiple channels to attract customers.
How many of these customers can you retain for your business?
The aforementioned question depends on the value you provide to the customer. The churn rate of customers varies from industry to industry. But on average, it’s between 2% to 8%.
To keep your customers, provide them with new offers. For instance, tech giants, such as Facebook, offer new ways of engagement to their users from time to time. A huge chunk of it is related to user-generated content, but the core business model is to keep users coming for more.
How many of your customers actually help grow your business?
Or, to how many of the customers can you up-sell or cross-sell your products? Some of your existing clients may refer your brand to their friends and families.
Collectively, the above factors are the building bricks of the ‘customer acquisition’ concept. Keep reading because we’ll address the following question in the coming section: why is acquisition so important?
The customer acquisition strategy is the backbone of all companies.
Yes, you read that right.
Besides supporting a healthy pipeline of new customers, it contributes to retaining the existing ones. And this is because retaining existing clients is ten-folder cheaper than attracting new ones.
Understanding the customer acquisition process can help you build healthy financial projections and prepare accordingly for market needs.
For example, suppose you understand the customer acquisition cost in-depth. In that case, you can easily project that if $100,000 is injected into advertising costs, an X amount of new clients will be acquired.
And this can help secure funding, allot inventory, and run healthy operations with minimal waste.
In today’s business world, we visualize the customer journey with a funnel that highlights the stages in the buying process and the prospect’s mindset.
As consumers move through the funnel to become buyers, they:
Lead generation typically happens at the top of the funnel, acquisition in the middle, and conversion at the bottom.
So, customer acquisition typically refers to the funnel as a whole. The customer acquisition strategy is made up of the top and middle of the marketing funnel with both lead generation and acquisition combined.
The bottom of the funnel (conversion) typically requires more dedicated, customized strategies to convert customers, such as lead scoring and closing tactics.
In the example above, the customer acquisition strategy is implemented mainly in the attract and convert phases, where consumers become readers, visitors, and leads.
High-level customer acquisition cost is calculated by dividing marketing costs associated with a specific campaign or effort by the number of customers acquired.
So, customer acquisition costs (CAC) = sales and marketing costs (MC) / Customer acquired (CA).
Keeping reading because, in the coming section, we’ll address the following: how to create a successful customer acquisition strategy
Check out the tips on how to create a successful customer acquisition strategy for your brand below:
The first step toward customer acquisition is understanding your customer base (current and target audiences).
And this includes studying competitors and analyzing market research data for insights. Learning your product-market fit can help you identify ideal customers and set marketing goals.
As you grow, keeping track of your customer profiles can help you analyze, understand, and expand your customer base. More so, you can identify your highest-value customers’ unique traits and behaviors.
You can define your goals and objectives with your ideal customers in mind.
Setting a result can help you think through a customer acquisition plan and guide your efforts. To meet your revenue expectations, set goals for your customer acquisition strategy. Besides, consider customer churn and current customer growth as you design the strategic plan.
For example, you could earn $20 million in new business over the next year, but you may not reach total revenue goals for the year if your industry has a high turnover.
It’s not challenging to prove your marketing efforts are working. Measure customer acquisition metrics, such as:
Create a customer acquisition strategy that aligns with overall business goals.
Identifying your ideal customers and customer acquisition strategy goals is a great start.
But that’s only the beginning.
Think about the channels based on your research and best-performing content.
A customer acquisition channel is where your customers meet your brand for the first time. It can be through social media, organic search, or a paid ad. Customer acquisition channels are how you bring in new customers.
You have to develop a unique strategy for each channel
You may want to get on every channel possible to start.
But the aforementioned can hinder your customer acquisition strategy. For example, if you’re trying to reach customers in their early 20s, you may find your audience is on Instagram or TikTok.
It wouldn’t be worth putting all your resources into Facebook or Google Shopping Ads. When creating a marketing strategy for each channel, focus on:
Depending on your customer acquisition strategy, you may realize that you don’t have to use TikTok if your customers are mostly on Facebook.
If saying more in a video than words is engaging and profitable, go for YouTube or Instagram. Essentially, research the best strategies for each channel to get the most out of your customer acquisition strategy.
Building an online business without analytics is like driving with your eyes closed.
You’re headed towards disaster if you don’t know what’s working (or what’s not), where online users are visiting, or how your pages are performing.
Many factors can affect customer acquisition. So, analyze and measure your results. Customer acquisition analytics can help you know:
Before tracking actions, people are taking on your website, figure out customer acquisition metrics to monitor. Some recommended metrics include the following:
Customer acquisition may seem daunting, but your business can attract high-value customers, keep them around longer, and grow more sustainably with the proper preparation and tactics.
Automation is one of the innovative ideas you can use to shape your customer acquisition strategy without spending hours tediously updating scope, timing, and targeting.
Remember, it’s almost impossible to keep an eye on every change in your customer acquisition funnel. Automate some of the most time-consuming activities to create maximum value for your customers.
Without an AI-driven marketing tool, you’ll have to spend an exhausting amount of time analyzing your data for opportunities to retain high-value clients within the ever-changing stream of numbers.
This is where PPC Signal comes in.
PPC Signal is designed ground-up purposely to help you optimize your search engine marketing (SEM) campaigns.
Besides, this iconic time-saver is designed purposely to help you implement data-driven strategies at an affordable price.
PPC Signal uses artificial intelligence technology to monitor your data for significant changes requiring your action automatically. The changes mentioned above can be categorized as shifts, trends, outliers, and anomalies.
A shift occurs when a series of consecutive data points fall above or below the norm.
On the other hand, outliers are single data points that fall way above or below the standard deviation line. Trends are the relatively long-term up and downswing movement of a particular phenomenon.
These noteworthy changes are presented as signals and each signal is labeled as either a risk or an opportunity.
Take a look at a PPC Signal dashboard, as shown below.
Let’s explore the insights provided by PPC Signal, as shown above.
Key insights are denoted as risk or opportunity using different colors.
In the last 28 days, the cost per conversion (depicted by red color) has been on the rise, which is a risk. And if left unattended, it can easily drain the ad budget.
PPC Signal provides you with the ability to filter your signal (risk or opportunity) based on: metrics, device type, keyword, geolocation, and hour of the day (HoD).
The blue Explore button provides more details about a signal using charts and additional information.
You can easily bookmark a signal for later reference by clicking the Bookmark button.
You can also explore the signals provided in visual form to gain in-depth insights. Besides, you can easily forecast the occurrence of a risk or an opportunity by extrapolating the chart.
PPC Signal has the Take Action button, which if clicked, corrects all the problematic areas contributing to risks in your pay-per-click (PPC) campaign.
You can take to drive high ROIs with minimal costs with PPC Signal by taking essential steps. For instance, if we were to optimize the campaign in the screenshot above, we would’ve taken the following corrective actions:
We would’ve written compelling, clickable PPC ads highly relevant to the keyword/search query and your intended audience. Also, we would’ve added high-intent mid-tail and long-tail keywords that indicate a searcher is in the buying phase.
Also, we would’ve maintained a high degree of relevance between our ads and corresponding landing pages. Our landing page would’ve been re-designed to align with the promises made by our ads.
The main aim of any business is to find and acquire customers and start making money. That’s why a customer acquisition strategy is critical for every business.
You can leverage a customer acquisition strategy to create a roadmap to reach, attract, engage, and convert prospects.
Customer acquisition cost (CAC) is a key metric to track.
You can easily measure the effectiveness of your customer acquisition strategy and adjust it over time. Also, it’s a meaningful metric for potential investors because it can allow them to gauge the scalability of your business.
Customers are the lifeblood of a business.
And for companies to achieve the aforementioned goal they should have a reliable and flexible customer acquisition strategy in their digital marketing campaign strategies, such as pay-per-click (PPC).
You need a tested and proven tool to crunch data to optimize your PPC campaigns for profitable customer acquisition metrics.
It turns out there’s an AI-driven application that can save you time by providing you with real-time insights you can use to optimize your customer acquisition strategy.
The aforementioned tool is aligned with the Kaizen practices.
PPC Signal is one of the leading AI-driven applications whose goal is to help you save time and other resources, especially if you run customer acquisition campaigns. It uses advanced algorithms to automatically detect opportunities in your campaigns.
No matter how complex or paralyzing your data is, PPC Signal provides actionable observations about positive and negative changes occurring in your customer acquisition campaigns.
Sign up for a 7-days free trial to attract more customers.
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