Customer acquisition is one of the digital marketing program’s most expensive endeavors. It’s getting harder and harder to generate new businesses and leads as a result of consumer mistrust on marketing and rising industry competitiveness. As a result, developing a solid strategy to attract people and convert them through your marketing funnel is crucial.
On top of that, building brand recognition and visibility are a great idea. But in order to maintain a firm, one must persuade customers to pay with their hard-earned money. Although this is a difficult task, acquisition marketing can be a helpful technique here.
What is Acquisition Marketing ?
Acquisition marketing is the practice of identifying and reaching out to new audiences in order to acquire new clients. In other words, acquisition marketing tries to attract new clients by promoting products to a new audience. In light of this, it is essential to any company’s eCommerce marketing.
Acquisition marketing focuses more specifically on prospects who are in the conversion funnel’s “interest” or “consideration” phases. Therefore, acquisition marketing doesn’t focus on raising brand awareness; instead, it develops tactics and plans to target customers who are looking into or thinking about buying a product.
Brand awareness and acquisition marketing are frequently mistaken terms. Both tactics are effective in pursuing those early leads, but there is a distinction.
Brand awareness techniques help to spread the word about your company and increase brand recognition. This frequently entails broad audience targeting. Contrarily, acquisition marketing concentrates on prospects who are already at the top of your marketing funnel. That indicates that although they are already aware of your company and its products, they haven’t started the marketing process yet.
Advantages of Acquisition Marketing
- Large Scale Operation with Little Investment
An acquisition-focused strategy in customer interactions has the main advantage of being able to be implemented on a wide scale with comparatively minimal cost. The recent developments in digital marketing technology, particularly marketing automation, are largely to thank for this. Putting marketing content in front of a worldwide audience is now simpler than ever. All you need is a website, a social media profile, and an email list; the software will take care of the rest.
- Build Strong Brand Image
Acquisition marketing also helps a company’s brand image, which is another of its benefits. The organization stays current in the market thanks to a competitive brand image. Additionally, since most people are familiar with the brand, marketing a company’s products becomes simplified if it has a solid brand image. Consequently, it is simpler to attract new clients.
- Analyze Customer Needs and Strategies Accordingly
Due to the necessity of analyzing consumer needs during the acquisition marketing process, another benefit is that the company is able to understand those needs. The company then employs the best tactics to help it satisfy the demands of its customers.
Disadvantages of Acquisition Marketing
- Increased Competition along with Change in Customer Preferences
The fact that consumer interest is frequently erratic is one drawback of prioritizing customer acquisition. Your initial marketing outreach efforts may be successful, but as soon as competitors realize there is profit to be made in your industrial segment, they will start providing similar services.
- Time Consuming Process
To determine the most effective tactics for converting potential consumers into new customers, marketers must conduct some data research. This procedure takes a long time. The goal of data collection and analysis for marketers and marketing executives is to determine the demands of customers and the approximate number of potential customers in a given location.
- Risky Investment
Acquisition marketing is risky for the company because it requires expenditure. For instance, the company might invest in a market and discover that no potential clients are acquired as a result.
Example of Acquisition Marketing
The referral system is one of the most often used client acquisition marketing strategies. By providing some sort of incentive for doing so, a well-designed referral system campaign will encourage your current customers to suggest their friends to you. By encouraging customers to engage with your company, the reward—which may be monetary or digital in nature—helps establish a mutually beneficial relationship with your clients. When looking into Dropbox, one of the most effective examples of this tactic can be found. Customers of Dropbox have access to a referral program that grants 500 MB of extra storage after inviting a friend. Additionally, your friend receives 500 MB of storage.
Dropbox increases the likelihood that you’ll recommend a friend to join by giving both sides something from a straightforward referral. At its most straightforward and concise, customer acquisition.