Startup stakeholders and venture capitalists often seek to disrupt established industry standards through innovative solutions. However, in the beginning, many startups struggle significantly to reach their potential customers.
Besides, even in the data-oriented market of 2022, many businesses and industries depend on dated customer acquisition methods. In such a scenario, business owners must develop the best customer acquisition plan to grow.
If you head a startup or are thinking of creating one, here’s a foolproof guide on creating an effective customer acquisition plan for your business.
The High Cost Of Customer Acquisition
Customer acquisition cost (CAC) is the cost of landing a new customer and includes marketing strategies, research, sales, product costs, etc. An acquisition strategy's return on investment (ROI) depends on CAC.
Often, it costs more to attract new customers than to sell to an existing one, mainly because businesses often rely on outdated methods that may or may not work in the current market. Solving the customer acquisition puzzle would greatly disrupt an established industry.
According to HubSpot, the average CAC per industry varies from $7 (travel) to $395 (technology and software.)
A Good Customer Acquisition Cost Ratio
For most industries, the ratio of LTV (lifetime value) to CAC should be around 3:1. A customer’s lifetime value with the brand should be thrice their acquisition cost. If it is anywhere near 1:1, you’re spending too much money.
How To Create A Foolproof Customer Acquisition Plan
The good thing about customer acquisition is that it is not difficult, and it shouldn’t have to rely on some legacy software on the market. Make sure you add these five strategies to your customer acquisition plan to achieve tremendous growth:
1. Think About Your Ideal Customers
You should first understand who your users or potential customers are, as this will give you clarity on whom to target. So make sure you conduct thorough market research and competitor analysis.
Ascertaining your product-market fit will help you set accurate marketing goals. Determine potential customer profiles and identify your highest-value customers by asking the following questions:
1. What do customers accomplish with your product or application?
2. What are the user’s pain points?
3. What is the exact customer demographic?
4. What unique selling proposition are you offering?
5. How do customers benefit from buying your products?
6. What is stopping users from buying your product?
2. Set Clear and Achievable Goals
Setting goals is crucial as it provides your customer acquisition plan with data-backed insights. It further results in lesser customer churn and higher growth.
While setting goals, keep the relativity factor in mind. It means that your revenue has to be in line with the industry turnover. Metrics such as customer lifetime value (CLV), recurring revenue, customer acquisition costs (CAC), and churn rate will help you set accurate goals.
3. Define Acquisition Channels
Think about the channels you’ll need to use based on your research and data.
For instance, if your products cater to millennials and gen-zs, it would be preferable to use channels like Twitter, Instagram, paid advertising, etc. On the other hand, email marketing would help cater to more B2B stakeholders.
See what kind of content works best for which channel. Ensure that your brand is available at all possible touchpoints your customers prefer.
It is crucial to have unique strategies in place for every channel. Think about:
1. The kind of content your audience interacts the most with.
2. What are your competitors doing?
4. Communicate With Your Users
Customer feedback is precious for brands, and it lays bare all possible gaps in the customer acquisition process.
You can use surveys, contact forms, interviews, social media data, etc., to collect customer feedback and find out what your customers think about your brand. Focus on those resolving the most common pain points customers face while interacting with your brand.
5. Keep Measuring And Improving Your Strategy
A business without analytics is like a car without a driver. You must constantly analyse what’s working, where people are clicking (if not, then why), what’s stopping them from buying your products/services, etc.
Multiple factors affect a customer acquisition plan, which is why it’s crucial to measure your results. Net customer growth, customer acquisition costs (CAC), churn rate, and customer lifetime value can help you make decisions.
Disrupt the Industry Through a Coherent Customer Acquisition Plan
The job only begins when you create a customer acquisition plan. To keep reaping maximum benefits, you must keep iterating until you find the best method for your brand or product.
In case you need help with a foolproof plan for your startup, we’re here to help. We at Scalix strive to help entrepreneurs and founders overcome barriers while framing a customer acquisition plan. Contact us to build a scalable and sustainable business seamlessly.
