The cost to acquire new customers has increased substantially over the years. Marketing, digital or otherwise is becoming more expensive, customers are less trustworthy of the brands, and it is becoming extremely difficult to break through the noise on social media and reach out to your potential customers. If this sounds like a similar pain point, then you are not alone.
In today’s world where social media and digital technologies are forcing businesses to rethink their marketing strategies, not implementing a digital marketing strategy is akin to committing business suicide. It is absolutely a no brainer that is you are a business or a brand, you need to have a digital presence with top quality content to ensure that your customers are able to discover you via your content. Businesses that do not believe in this are either struggling or on their way to oblivion.
In order to build a successful digital strategy that helps you convert prospective leads to paying customers, you need to have a balanced approach towards your online presence and messaging. Bifurcated into two aspects: organic and paid campaign strategies, each has its own pros and cons which you must develop a deep understanding of. To understand which would benefit more, you first have to understand what is your proposition and which strategy should be leveraged for better results.
Strategies To Acquire New Customers Via Online Channels:
Organic Campaign Strategy: How to acquire more customers via organic content generation
Organic content is one which you post on a regular basis on your website which is further augmented by your social media channels and Google. Mastered by Hubspot, a behemoth in the digital content marketing space, Hubspot’s route to success has been a very strong content pipeline building capability that churns out key content with each piece offering several pieces of insights within its content. With content discovery as its key strategy, each blog piece the brand publishes is a centerpiece with oodles of content and learning material for its users and site visitors. Every piece is then further embedded with several other content pieces such as hyperlinks to relevant content pieces, downloadable e-books that capture email IDs, checklists, images with additional learning material, featured resources, several hyperlinks to other content pieces and much more. The idea being that the user gets enough value so that they continue to consume content and stay connected with the brand. This is further propelled by using the latest SEO strategies that ensure that their content ranks high on google search further pushing more traffic to their site.
Paid Campaign Strategy:
Paid campaigns are the Ads that one sees as you scroll through the internet on various websites. The best example for this would be e-commerce platforms such as Amazon and Flipkart whose ads show up on every other website you visit after moving away from the e-commerce sites. This is made possible via the several highly targeted ad campaigns that are run by these sites to bring you back to their site and to sell more products. Similarly, another brand that does this beautifully is MIndvalley, that uses video ads very well to acquire new customers. The reason a lot of people may not have heard about Mindvalley is because of their highly targeted ad campaigns on YouTube, LinkedIn, Facebook, Instagram, Twitter, and Snapchat. Mindvalley relies heavily on their highly targeted ads to ensure customers who have visited their site are brought back to the site and pushed through the sales funnel to convert leads to paying customers. This considerably increases their marketing costs, however, they are able to generate more qualified leads with such a methodology.
Paid Campaigns or Organic
For most brands, a healthy strategy would be to use a good mix of both organic and paid campaign strategies. A paid campaign or Search Engine Marketing(SEM) brings in results and leads fast however involves high costs required for ad budgets and visibility of the content reduces over time. Organic Campaigns or Search Engine Optimization (SEO) is a low-cost solution that takes a long time to produce results. Content created as part of organic campaigns is available online a lot longer as well as compared to the short term content created specifically for Ads.
Here’s how to get started
Step 1: Posts – Quality leads improvement – conversion
Step 2: Ad spend, increase the content pieces, increase the ad spend,
Step 3: Utilize Analytics and optimize ad performance
Step 4: Optimize your CAC
Step 1: High Quality Posts
Initially, getting started on social media posts might seem like a tough task with regards to what to begin with. Hence, start small, maybe 3 or 4 high-quality posts per week, and then as you get traction to increase the output to 20 a month, eventually leading up to even twice a day to keep the momentum going. Keep in mind, every post has to be high quality, grammar checked, and well designed. Videos do really well however they must be in context to your overarching theme and must support your brand.
To ensure you share high-quality posts that users/viewers actually read, you need to follow the below-listed steps
Keywords are the words that people enter in google search to search for information. In order to ensure that your content creation efforts are not wasted it is important to understand which type of content would do well. Understanding of which keywords have maximum traffic would help in deciding which content is to be created. Using industry-standard tools such as Google Keyword Planner, Moz Keyword Explorer, and other advanced keyword research tools such as SEMRush, you can identify keywords that your prospective customers use on Google to search for content similar to yours. Almost all such tools free or otherwise, offer insights such as traffic searching for such content.
By using those top keywords, create content that would attract a higher number of internet surfers to land on your website. A blog is a great way to enable this. For every content that is posted on your blog, further share the link on all the social media channels to bring in more traffic to your site.
Call to Action – Capture leads
The primary reason for content creation is that people discover your content, read it, enjoy it and wait for more. As such they should sign up for something free on your site, next blog piece, newsletter, ebook, etc. By capturing their email ID you will be further able to email them with key content pieces that would bring them back to your site further. Simultaneously, this would enable you to use their email ID for targeted ads.
Pro Tip: Ensure that your blog has the functionality to embed videos, audio files, and multiple images. More videos, audio files, and images would lead to site visitors spending more time on the site which would enable higher SEO rankings for your content thereby bringing in more traffic looking for similar content.
Content Repurpose – Pillar Content Strategy
A long form blog article (more than 1000 words like this one) can easily become your pillar content which would further give ideas for smaller content pieces. Excerpts from the blog can be used to create an infographic, smaller blog posts, image posts, become part of an e-book or the whole blog can be converted to an ebook, with a few additions such as a checklist of to-dos, how-tos, and much more. Expansion of one central idea into several content pieces is the key idea.
Step 2: Paid Ad Campaigns
Facebook, Instagram, Linkedin, Youtube, and other social media platforms have a very unique set of audience types. If your brand caters to professionals, then LinkedIn is the place to be, if your target audience is below the age of 15, then Snapchat, Tiktok, YouTube and possibly facebook would be a decent combination to look at. Identifying which platform to advertise on is equally an important aspect as important as deciding what ad campaign to run.
Paid ad campaigns
Ensure you get better results with Paid ad campaigns by distributing your budget for more ads. Known as A/B testing, tweak how your ad looks and what it states to see which ones perform better. So if you have a $100 budget for a week, instead of running 2 ads with a cap of $50 for each, run 5 ads with slight differences to check which ones appeal more.
Pro Tip: Ads run on a setup that people who have shown similar interests are to be shown the ads. Increasing the span of interests and targeting might actually cost you less money since the reach will be higher however they may not be as qualified. Running highly targeted ads ensure that you get more qualified leads, however, those generally cost more money per lead.
To get more results faster, Increase your budget for the ad spend and spread out your ads with different demographics and interests to capture a wider audience and get more leads. Simultaneously, increase the number of organic content to ensure that those who do see your ads are able to get more quality content on your pages.
Step 3: Utilize Analytics and optimize ad performance
All ad platforms have an analytics engine that shows how your ads are performing. With the platform’s analytics engine, you can perform richer analyses with more richly-detailed reports that help you in understanding how your ads are performing. Armed with that analysis, you will be better able to optimize your Ads accordingly. Google’s Adwords, facebook’s Ad manager, and others are all tools you could use to analyze your Ad’s performance.
There are several tutorials that teach you how to run great ad campaigns, however, it is always a good idea to hire a digital marketing specialist or an agency who can optimize the ads for you and ensure you get the maximum ROI.
Step 4: Optimize your CAC
Basically, a CAC (Cost of Acquiring Customers) can be calculated by simply dividing the amount of money spent (cost) to acquire new customers (marketing expenses) by the number of customers acquired in the period the money was spent. For example, if you had spent $100 on your ad spend in a month and acquired 10 customers in the same time period, your CAC would be $10.00.
Here we have specifically mentioned Ad spend in marketing expenses which does not include the cost of your organic campaign spend.
There are several ways to optimize your CAC which must be implemented to ensure you have a successful long term strategy in place:
1. Improve on-site conversion metrics:
Optimize landing page loading speed, perform mobile optimization, provide faster checkouts and other factors to enhance overall site performance to make it easier for your site visitors to perform the call to action tasks.
2. Define your target:
Know who your target audience is and what they want. By filtering out all the people your business doesn’t appeal to, you then focus on customers who intend to do business with you which would immensely reduce your costs since your ads would be much more targeted.
The easiest way to do this is to define user personas. A user persona is your ideal customer you sell to and gives you a deep understanding of what you need to do to keep them coming back. To create a good user persona, do your research: user’s background, interests, age range, job title, etc. Additionally, make sure you use the right social media platforms, creating the best content that helps solve your customers’ problems.
These are aspects that share how to shape your business to match what your customers are looking for. When you know what to expect, you will be able to lower the costs of acquiring new customers.
3. Enhance user value:
Relook at all the content on your site and blogs from a fresh set of eyes to see what they value. Anything that is not of value, drop it, remove it or reduce it in quantity to prevent site drop-offs and increase engagement levels on your site.
4. Use retargeting
Retargeting means displaying your ads on other sites to customers who have visited your site. Well designed retargeted ads make your visitors come back to your site after seeing your ads repeatedly. When your ads continue to pop up, it encourages them to revisit your website and make a purchase.
This method turns casual viewers into paying customers which increases conversions. To enable this, provide a clear call to action (CTA button) on your ad.
5. A/B testing
In order to reduce your CAC, leave no stone unturned, test different elements of your campaign and copy to figure out what’s bringing you the most leads, retaining customers and improving conversions because all of these things lead to a lower customer acquisition cost.
- Landing pages
- Website copy
- Calls to action (CTAs)
When it comes to things you can test in your efforts to acquire new customers, the list is endless. Trying out variations of different color schemes, wording, image placement, etc. works well for many companies. Sometimes it’s as simple as changing one word that makes all the difference and convinces a customer to buy from you. You just have to keep up with the trial and error and track when conversions are doing their best.
There are several methods to reduce the cost of gaining new customers. It’s always helpful to revise every step of your funnel so you can see where costs could be lowered and optimized.