Digital Customer Acquisition Strategy

Customer acquisition is one of the core concepts of business management: every organisation has to start by finding customers who are interested in its products/services. Creating or improving a customer acquisition strategy is a primary challenge which every business has to face.

What is Digital Customer Acquisition Strategy?

Customer acquisition is the business practice of acquiring new customers in an organised and regular manner. When applied this strategy to digital marketing, you obtain digital customer acquisition: it is the methodology for the acquisition of new customers via online channels.

Why is Digital Customer Acquisition Strategy important?

It’s a key part of any business of any age and size for the following reasons

  • It is what starts the cash flow, bringing in money to run a business and pay costs
  • Its allows the business to grow and expand, by flowing in money in a regular and consistent manner
  • It is particularly important at the beginning of a business lifespan, when you still cannot rely on a reliable customer base and retention practices

How to develop a digital acquisition strategy

The three steps outlined below are the ones I carry out when approaching a customer acquisition strategy for my clients:

  • Research

    It is key to first understand your business, assessing things such as your website, analytics platform, overall digital marketing strategy, competition and cost structure. This is the time where to dig into your audience data and assess your personas.

  • Planning

    After collecting the right insights on your business, the next phase focuses on planning the actual strategy: from setting your goals and KPIs to choosing the digital channels that your business will be using.

  • Reporting

    Before executing your strategy, it is key to decide on what type of reporting your business will be doing, so to have a clear plan to measure results.

Customer Retention Strategy

Customer retention is generally more cost-effective than acquisition, simplye due to the fact that you have already gone through the hassle to “win over” a customer, so you have earned their trust and loyalty.

Customer retention is often considered an acquisition method itself, and should be part of every organisation’s focus. Instead of neglecting your existing customer, which are the foundations of your revenue stream, it is probably worth looking at them as a resource for more business. 

Take a look at some established stats around customer retention:

  • It costs five times as much to attract a new customer, than to keep an existing one
  • 44% of companies focus more on customer acquisition vs. 18% that focus on retention
  • 65% of a company’s revenue comes from existing customers
  • Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program
  • Only 40% of companies know how to measure customer lifetime value (CLV)

 

Sources: emarsys & altfeldinc

FAQ

Most frequent questions and answers
Customer churn is the percentage of customers that opted out from using your products and/or services, within a certain timeframe. Customer churn is a key metric for “young” businesses as it can help understand real retention numbers.
It is calculated by assessing the percentage of lost customers during a certain timeframe. For example: if your business has 100 customers on January 1st, and this number reduces to 80 at the end of April 30th, it means your churn rate is 20% for the quarter.
The lifetime value of a customer, or customer lifetime value (CLV), represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime. This is an important figure to know because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones

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