Customers are the most important part of any business. They play a significant role in helping you expand your operations. Unfortunately, introducing and convincing new customers to shop from your online store is not easy.
This is why businesses implement a customer acquisition process to facilitate the onboarding of new customers to your business. Customer acquisition combines techniques that empower you to bring new customers to your store and encourage them to order. The ultimate objective of undergoing this procedure is to create a methodological, sustainable model to gain new customers and expand the business and its revenue.
If you have an online store you wish to grow, you need to have a proper plan. In fact, 44% of businesses prioritize customer acquisition, whereas only 19% emphasize retention.
Considering this, you must also create a plan of action to acquire new customers. Here’s all you need to know about customer acquisition.
Invest In Paid Marketing
Paid marketing is one of the most effective ways to introduce your brand to a larger customer base and increase conversions. Your business can try these paid marketing strategies to improve customer acquisition:
Minimize Ad Spend by Analyzing Engagement Metrics
Running paid marketing campaigns is one of the most effective ways to increase your digital visibility. However, running ads without a proper strategy can be expensive for businesses. This is why it is advantageous to create posts for social media platforms, check their engagement, and boost popular ones as ‘engagement ads.’ This way, you can make your post visible to a larger audience and increase your conversion rate.
Additionally, it may be a good idea to promote your posts on various social media groups and communities that include your local demographic. For instance, if your eCommerce store delivers to a specific region in Thailand, you can specify the location before running the ad campaign. Engagement ads increase engagement and sales.
Remarket to Potential Customers
Another effective customer acquisition approach is remarketing. Remarketing allows you to display your ads to the audience that previously interacted with your ad. You can create a remarketing campaign to run on social media, websites, or via emails.
You can build a remarketing campaign strategy that is personalized for the leads that you have collected through social media and lead funnels. Then, you can integrate these ads to the paid marketing platforms to execute the remarketing strategy for social media or search advertisements.
It is beneficial to create remarketing strategies by testing out different ad sets and assessing the success rate of each campaign. Remarketing campaigns bring in leads that are prepared to invest in the products or services your eCommerce platform offers. They are also more likely to buy because they have interacted with your business or visited your website earlier. Essentially, this approach cuts the paid marketing costs since the conversion rate is high.
Run Ads for Lookalike Audience
Your eCommerce business can also acquire new customers by targeting paid ads to similar or lookalike audiences. As the name suggests, the lookalike audience is those potential customers who fit the same criteria as your existing customer base.
To create your lookalike audience, you will need to identify the customers who have made purchases from your store. Then, you can use their demographic information, such as location, preferences, among others, to classify your target audience.
You can also build your lookalike audience using the Micro Split Tests (MST) approach. For this, you will have to select the target audience and run variations of your ads to assess their popularity. Once the conversions begin, you can split the test with a lookalike audience and repeat the steps to determine the conversion rates for each campaign. Finally, you can continue the process to assess which ad invites the most leads.
Run an Email Marketing Campaign
Another way to invite customers to your eCommerce store is by running effective email marketing campaigns. The number of email users is expected to reach 4.3 billion by 2023, which means you can reach a wider audience by sending out emails. Let’s look at a few strategies to create customer acquisition emails:
Send Cart-Reminder Emails
This email is sent to your existing and potential customers who visit your store for the first time to explore your inventory.
Cart reminder emails go to customers who place products in the cart without checking out. The email content reminds the customers about the items left in their shopping cart while urging them to place an order. Often, eCommerce stores offer their customers attractive discounts to make the purchase more appealing.
In the case of cart-reminder emails, it is essential to create a compelling email copy that captivates the potential customer’s attention and encourages them to make a purchase. Therefore, most businesses emphasize the drastic changes the added products can make to the customers’ life.
Drive Engagement from Unopened Emails
Another way to acquire new customers is by targeting customers who didn’t open your previous emails. You can identify these individuals by enabling email analytics. This feature allows you to track how your customers interact with the email. For example, you can check the open rate, the click-through rate, and the conversions driven by email campaigns.
Essentially, you can use the data gathered from analytics to curate emails for potential customers who have not opened the emails. Again, persistence is key in ensuring that your brand gets exposure to the right audience. The process is also quite simple.
You can keep the same email content and alter the subject line to persuade the potential customer to check the message. It is recommended to send the follow-up email a week later so the recipient doesn’t feel overwhelmed.
Implement Content Marketing
Content marketing plays a critical role in promoting brands digitally. This digital marketing tactic is great for product promotion via blog posts, ebooks, guides, articles, videos, infographics, and other types of content. Statistics show that content products have three times more leads and cost 62% less than other marketing approaches.
This is why it is essential for eCommerce stores to devise a methodological content marketing strategy to acquire new customers.
In cases of customer acquisition for an eCommerce store, creating blog posts and review posts is one of the most effective methods. In addition, your store’s website can include a blog section that provides informative guides relating to the products that your store offers. For instance, if you sell high-fashion clothing online, talk about styling tips, write guides on choosing the right fabric, and deliver news about the fashion industry.
You can also add a section for product reviews on your blog page. This should help your customers become familiar with the items your store offers and remove any reservations they may have for making a purchase.
In addition to informing the customers about your range of products, content marketing is also good for your website’s SEO. The more pages (blog content) you add to your website, the more visibility you have in the digital realm. Therefore, it is essential to write content that is optimized for search engines.
You can carry out keyword research and include commonly searched terms and phrases (high-volume keywords) in your content organically and seamlessly. By writing keyword-infused blogs, you can appear in search queries made by your target customers. With higher rankings in the SERPs (Search Engine Results Page), you can invite more traffic to your page, thus increasing the likelihood of conversions.
Another way to increase your customer base is by partnering with other brands that operate in a similar niche. For instance, if you sell high-end clothing, working with an eCommerce store that sells shoes or makeup can help you create and promote compelling ads or posts to a new range of customers.
Partnerships help you expand your brand’s presence and invite your partner’s customers to explore your store. To expand your customer base, you can collaborate with other businesses, influencers, or individuals with a large following.
Determine the Customer Acquisition Cost
Customer acquisition cost is determined by calculating the sum of the total sales and marketing costs required to get new customers over a specific period of time and dividing it by the total number of customers acquired. This amount tells you the real value of your marketing efforts, which ultimately allows you to calculate your ROI (Return on Investment).
Let’s say your firm spends more than $4000 on creating a sales and marketing funnel to bring on 400 customers. In such a scenario, your customer acquisition costs would be one thousand dollars.
That said, the total marketing costs should include all charges related to running campaigns, software programs, marketing spends, salaries, wages, commissions, employee bonuses, and the overhead costs of increasing your customer base within the specified time frame.
Suppose the customer acquisition cost is more than anticipated. In that case, you can refine your approach using the tips above to ensure that the new expenses align with your set budget.
Every business needs new customers to keep its business afloat. If you have an eCommerce store, you must create a customer acquisition strategy to ensure a healthy influx of customers to expand your brand’s reach.
However, if you haven’t started to eCommerce venture yet, you can easily create a store with Zaapi and bring in new customers using the preceding tips.