Webingo | Best Web development company in Kolkata India

Without big data, you are blind and deaf, and in the middle of a highway.

Customer Database Acquisition

Let us start with an introduction

Customer Acquisition means gaining new customers or existing prospects to become new customers for your business. The targeted customers are one who are not aware about your products and services or they have bought from your competitors. Business should be ready to prepare a high budget for acquisition as well as customer retention as both are important for business. Commonly, the cost of the Customer Acquisition process measures how much value a customer is bringing to your businesses.
The Customer Acquisition process depends on the strategies that involve systems and methodologies to manage customer inquiries. Few strategies are customer loyalty programs, customer referrals and so on.

Request A Quote

Customer Database Acquisition

Acquiring new customers can be a costly endeavour, especially when compared to customer retention costs. In fact, it generally costs five times more to acquire a new customer than to keep an existing one. There are many customer acquisition channels that companies and organisations use to acquire new customers, including websites, email, social media sites, direct mail, SEO and PPC, web banners, and mobile devices, among others. Yet, statistics show that the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%.

Cost of Customer Acquisition

The cost of customer acquisition (CAC) means the price you pay to acquire a new customer. In its simplest form, CAC can be worked out by dividing the total costs associated with acquisition by total new customers, within a specific time period. CAC is an important component for any business, along with the lifetime value of a customer, because your company needs to be profitable by getting a return on investment from all of your marketing and sales campaigns. You need to be savvy with your customer acquisition strategy so that you acquire new customers in a cost-effective way.

What Is a Customer Acquisition Strategy, and Why Does It Matter?

A customer acquisition strategy is a company’s approach to bringing in new customers. It involves marketing efforts, advertising, referral programs and sales, among other methods used to draw someone in. You may need to persuade them to use your service or convince them of the benefits of a product. Perhaps you need to add value with a loyalty program. All of these are ways a company may try to acquire new customers.
Customer acquisition is an essential part of judging the value each customer brings to a business. A significant component of a client acquisition strategy is the customer acquisition cost (CAC). The CAC is a calculation of the amount of money required to bring in a new client or customer, and it can vary widely among industries. Minimizing CAC can help save money and ensure that you still get a profitable return on investment from the customers you acquire. We’ll talk about it in more detail later, but this number is a significant component of your strategy.

5 Data-Driven Strategies Proven to Drive New Clients

With new technologies and the ease of gathering data, customer acquisition has taken on a new dimension. It can be expensive to obtain a new client, and data offers unparalleled efficiency. You can easily collect information and send marketing materials directly to the customers they would affect most. Here are a few methods for improving your customer acquisition strategy that reap the benefits of data.

Nail Your Current Customer Acquisition Costs

CAC is a vital measurement that helps you calculate the success of your customer acquisition strategy. Finding the right CAC can save time and money and allow staff to improve the quality of the leads they generate. Some of the costs a CAC might include are:

Ad spending.
Technical and publishing costs.
Marketing overhead costs.
Personnel resources to execute and create content.

To calculate the CAC, you’ll need to select a date range. Say you’ve chosen to review Q1. You would add together all the costs associated with acquiring the customer and divide the total by the number of new customers you got during Q1. The result is your CAC for that period.
Another number that you’ll want to find is the lifetime value (LTV) of your conversions. Each customer provides an LTV of how much profit they will generate for the company, and this LTV should be higher than the cost it takes to acquire the customer in the first place. To get the LTV, find the average amount spent on a purchase and the frequency of purchases throughout that time. Multiply these values together to find the customer value. Finally, multiply that result by the average number of years a customer purchases items from your business to find your LTV. This number provides you with an expectation of how much profit new customers are likely to generate.

Once you’ve found your CAC and LTV, compare the two. Most marketers suggest a three-to-one LTV:CAC ratio. Reaching this ratio can help ensure the profitability of your acquisition efforts. It confirms that marketing efforts aren’t returning low-benefit customers or none at all. These numbers offer you a comprehensive view of the viability of customer acquisition efforts.

Offer Multiple Channel Communication

In the digital age, customers need to be able to contact a company when and how they want, and it may correlate to reaching business goals. Leaders in customer experience are nearly three times as likely as their colleagues to significantly exceed their top business goals, and contact is a part of that. Between social media channels, email, website contact forms and phone numbers, people have different preferences across demographics and industries. Reaching customers through their preferred medium and in the right way can be a significant part of interacting with them and creating a positive experience.
Consider how customers can reach out to you if they have a problem. Are you easy to get in touch with, and can they reach you in a variety of ways? What do they do if they need to make a payment? You can make it easier on your customers by providing multiple payment options, such as paying:

Online
By mail
Over the phone

Unsure of how to find out what your customers want? Send a survey. Ask them questions like how they prefer you contact them and how they would like to contact you or make payments. Finding their preferred channels can help you improve targeted communications and satisfaction.
You’ll need to understand your audience and their needs to select the appropriate channels. For example, advertising on Snapchat and Instagram won’t do you much good if your audience is mostly older people who don’t use smartphones in the first place. Surveying them and using the data you gather can help you inform your channels of communication.

Discover Lookalike Audiences

Lookalike modeling creates a profile of your target audience and identifies people who look and act in similar ways. By analyzing key characteristics, you can find new audiences that are a close match to your target audience to scale marketing campaigns and increase ROI. Essentially, lookalike audiences are an expansion of the customers you already have.
It probably took a lot of work to find the ideal customer, so it makes sense that you would want to identify more like them.
The process of developing a lookalike audience starts with a small pixel placed onto a page, such as a purchase confirmation page. This pixel is a small piece of code that can collect customer data about their web use. Some characteristics it may pull include:

Location
Demographics
Purchase history
Search history

You’ll need to include data from multiple channels when creating this audience. For instance, if your biggest purchasers buy over the phone and you’re only calculating data from digital purchases, you may be missing out on a significant chunk of information. Be sure to collect as many sources as possible when compiling your data.
When you have your lookalike audience, you can target more effectively and bring in more customers you know tend to behave in the same ways as your current ones.
A lookalike audience is never complete. Leaving the program to run and gather more data can help it learn more about your current audience and adapt as needed.

Understand Signals of Intent

Signals of intent are the context clues and data that tell us what a potential customer is doing. A signal of intent to buy a pair of shoes, for example, might be someone doing a Google search for shoes in their size. Other factors that can contribute to signals of intent include the activity around the search. If they’ve already been searching for shoes for a while, they may be closer to making a purchase. If they’re searching from a mobile device while in a shoe store, they could be looking for a cheaper option or to see if their size is available online.
What the person does next is also a valuable signifier for their intent. If they purchase directly after finding a listing on a website without any previous searches, we know that they may not be the most thorough of shoppers. If this was the start of a long search, we see the opposite is true, and they may be more methodical in their searching. These approaches can tell us more about the individual’s shopping habits.
One of the primary signals of intent is signal keywords. These keywords are part of why companies perform search engine optimization. The goal is to reach customers who already show interest in the item for sale. Core keywords address the topic itself, while adjacent keywords are closely related. Other keyword designations include:

Early-stage words: Indicate the buyer’s interest in a topic, such as “how to,” “why” and “what is”.
Mid-stage words: Show the evaluation of solutions, like “best” and “examples”.
Late-stage words: Indicate the buyer is close to purchasing and is choosing between options using words like “price,” “vs” and specific brand names.

Signals of intent can also relate to current events. If a change in legislation or a new industry development occurs, you can capitalize on that and create outreach to target the customers likely to experience the effects. If you know someone will be looking for information about the issue, sending an email to the right people about the topic can help get you out in front.

Deliver Personalized Customer Experiences

With the growth of data and analytics, it is easier than ever before to provide people with a customized shopping experience. People expect targeted ads, emails, product suggestions and more from companies they’ve already worked with, but you can also use personalization to acquire new customers.
Using data can help you offer behavior-based recommendations that give the customer a personal experience and can increase the chances of them becoming a customer or client. Adobe found that almost a quarter of larger organizations think data-driven marketing that focuses on the individual is the single most exciting opportunity for their organizations. These targeted recommendations align with their purchasing patterns and may consider similar audience actions.
For example, if your customer frequently watches video content more often than they read blog posts, you can pull that data from the data management platform with a tool that will suggest more video content for them. Or, if you know a shopper likes handbags, you can suggest these as a recommended product instead of something they’re not interested in.
This kind of personalization can also come into play with the types of goals you are looking to accomplish.

Why you Need a Defined Customer Acquisition Process?

Although we know it’s not possible to create a linear process to acquire customers, however, we cannot deny fact planning ahead is useful and necessary. It’s a best away to execute every step carefully, and even any glitch can be solved if arrived in a process without beginning from initial stage.
Customer Acquisition Process required strategies to build up that prove to be effective. First prepare a plan and implement later.

Enquire Now

Customer Acquisition Process

Donec metus lorem, vulputate at sapien sit amet, auctor iaculis lorem. In vel hendrerit nisi. Vestibulum eget risus velit.

Define the Target Prospects

Your acquisition process begins with identifying who are the potential or targeted customers for your business success. Find out who are they, how to gain them, how you can talk with them or how you can sell your products to them. Finding right customers for your products will help in knowing which individuals are interested in buying your products or using the same type of products from your competition.

Create your Product Demand

Though you know the fact, big brands already have large number of customers who are aware of their brand. Acquiring new customers won’t be a big challenge for established organization. However, bigger challenge bombards for the startups or small brands where they require to inform customers about their existence, be with them throughout the process, tell them how much you care or how effectively your product meets their demands.

Hire Right Staff

Customer Acquisition process requires hard work and dedication. Therefore, hire right people who understand the process correctly and implement it. Your employees should wear the hat of their defined responsibility to work accordingly. Suppose, a salesperson should always be ready to identify what a customer wants by collecting data from their ongoing conversations or interaction with other ways. They should be able to understand what a customer wants and offers a relative product that customer find valuable.
Even if we talk about support, development team should be ready to tackle any unexpected error in your store.

Define Customer Acquisition Cost

Before on-boarding the Customer Acquisition Process, determine the cost you will have to bear to implement the process. Remember, companies have to spend more without assuming customer spend like. Commonly, cost is calculated as total cost spend on acquisition process (sales and marketing cost) divided by total new customers acquired in the given time frame.
This cost holds important consideration to define customer value. Companies expect return on investment with this acquisition process. The ultimate goal is to gain high ROI value to customer acquisition cost radio.

How to Reach Targets?

After deciding who the target is, find ways how to contact them. Do research, survey, call, email or use analytics tools to find right customers for your products. If you are able to acquire the new customers, then chances are turning them into potential buyers.

Why Customer Acquisition is Important?

If using the Customer Acquisition right way, it would be easier for the companies to gain potential customers for their business. Specially, the startups or new companies require focusing on the acquisition concept to deal with the new customers ideally. Remember, Customer Acquisition cost is higher, therefore prepare a separate budget for it.
Want to know the tactics for customer acquisition? Contact to our eCommerce consultant to discuss today!