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5 chapters | 52 lessons
You've owned your own business for about a year and want to grow your client base. You need to work on customer acquisition, the process of attracting and gaining more customers through marketing, word of mouth, and advertising. Acquiring new customers takes focus, time, and money. However, finding new customers is important for companies to continue to expand.
Developing a customer acquisition strategy involves identifying your target market and determining how best to reach these potential customers.
Your target market is the group of people most likely to be interested by your product or service and to benefit from its use. Many factors define a target market, including age, income, geographic location, and lifestyle.
Let's imagine you are selling playsets and outdoor equipment for children. You define your target market as people who have children or grandchildren, earn enough to afford your playsets, live in locations where the yards are large enough for equipment, and want the convenience of giving their kids swings and other toys at home.
With your target market defined, you are prepared to determine how you will reach these potential customers. It also helps you focus your resources. It would be a waste of money to target households without kids, with no yards, and in low-income neighborhoods. These factors do not match your target market demographics.
Once you know your target market, take some time to find out where and how you can best reach these potential customers. Will you do local or regional marketing? Are you rolling out a national campaign? Regardless of the reach, you will need to spend some time identifying where members of your target market shop, spend time, and can best be reached.
In your nationwide playset business, you determine the best way to reach your target market is through targeted social media activities, national ads on kids-focused television stations, and in children's publications. Because the play equipment is designed for children, you decide the best way to reach parents is to go through the mediums that focus on kids. You also know if you can catch the attention of the children, they will express an interest in your toys to their parents.
Your strategy provides a good foundation for customer acquisition activities, but you need to fine-tune it to plan how you will use specific marketing communications channels. Depending on your strategy, you may use a different mix and approach with social media, advertisements, and word of mouth.
One of the easiest, most cost-effective, and immediate ways to reach your target market is through social media. Mediums like Facebook, Twitter, Instagram, and Pinterest allow you to reach a large audience of potential customers in a very short amount of time. You can also buy ads that are directed to a specific audience, which helps you further define who will see your message. Offering an incentive or discount for requesting information or making a purchase can help you see instant response.
You determine social media will be a great method to reach nationwide customers for your playsets. By acquiring customers across the country, you know you can grow your business and get more visibility for your business quickly.
Advertisements can be expensive but effective. If you have a localized business, you will want to look for opportunities in your immediate area to advertise your business and make sure customers are aware of your offerings. You may choose to advertise in local newspapers or magazines. Billboards and other visible ads may be good options. You can also do direct mail that is sent to the people you want to have as customers.
You decide that advertising can be a great addition to your marketing plan. You purchase a series of television ads on Disney Jr. and the Food Network to attract family-focused consumers. This will be a great support to your social media marketing.
For most companies, word-of-mouth marketing is invaluable to getting the word out about their products. Think about the last time a friend told you about something that friend was excited about purchasing. Your friend's enthusiasm and testimonial probably caught your attention, especially if you were in the market for the product. As a result, you may have decided to buy the same product your friend purchased because of the recommendation.
You determine your business needs to create additional benefits for customers who tell others about your playsets and create sales for your business. Instead of offering a cash bonus, you decide to send flowers and a handwritten note. As a result, your customers are surprised and pleased to receive beautiful flowers when their friends and family purchase a playset as a result of their recommendation. This leads to more recommendations and excitement about the recognition they received for their word-of-mouth advertising.
Collecting data and reviewing reports about the rate of new customer acquisition and where those customers came from helps companies evaluate and adjust their customer acquisition strategy. Analytics includes data that identifies where customers heard about your products, where they purchased products, where they live, and other identifying factors. As you understand more about your customers through analytics, you can focus in on a more targeted market and reach potential consumers more effectively.
Customer acquisition is a critical activity for businesses to ensure they have new customers and are growing their company. A customer acquisition strategy includes identifying the target market and knowing how to reach potential customers. The methods for implementing a customer acquisition strategy can include social media marketing, advertising, and word-of-mouth marketing. Understanding and reviewing analytics can help companies assess and refine future marketing plans.
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Back To CourseEmail Marketing Training
5 chapters | 52 lessons
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