What Leads to Increase of Customer Acquisition in Startups
To attract the attention of the target audience, a venture needs to cater to the target audience, on the basis of demand of the product, behaviour of the consumer, and costing of the services rendered.
While understanding the growth story of any startup, whether in fashion or furniture, cab sharing or creation of urban art, customer acquisition is the fuel. Purchase is personal experience for every individual. According to the behavioural pattern of every market, every enterprise sets up their ways for accelerating a growth story. Marketeers always advise that retaining an existing customer is always more advisable than investing to acquire a new one. A research study by Frederick Reichheld of Bain & Company, shows that increasing customer retention rate by 5 %, improves profit by 25 % to 95 %.
For every B2B or B2C business, the ultimate interest of the business is to improve their conversions. As per the bandwagon effect of the economies of scale, buyers get influenced by the purchases of their community. The various mechanisms of acquiring or retaining customers are, referral program, aligning search intent as per requirements of the company, publish content on external website, storytelling leading to higher conversions, and more.
One of the most famous success stories of virality within a product is with Dropbox. Dropbox built in a referral system that meant you'd receive an extra 500mb of storage once you'd referred a friend into Dropbox. Not only that, but the person you referred in also received an extra 500mb of free storage. The fact that both parties gained value from a referral dramatically increased the likelihood that existing users would invite others.
Customer Acquisition Cost
It is the Customer Lifetime Value on the basis of which Customer Acquisition Cost is measured. Putting a clear call to action on every page of your website, updating keywords and other aspects of your SEO may help to keep pace with customers' interests and industry trends.Value proposition can increase in the market not just by having an enhanced brand presence, but by improving experiences of the customers.
Aligning Search Intent for Content Upgrades
Industry, feature and location Pages are extremely crucial for area specific services. For any services like Housing, Ola, Swiggy, Uber, Airbnb, and more, giving search results based on location is a requisite for customer acquisition. For all such like of B2C services, eliminating road blocks for better search results is an essential.
Build Inherently Viral Mechanism to the Product
The core benefit of having virality baked into your product is that you can scale up new user acquisition without increasing your customer acquisition costs (CAC). Using visual imagery, video content and optimized keywords attract a lot of customers as they find watching a video a simpler way to gain the required information.
Publish content on External Sites
Professional photography or enhancing visual impact on the customers. Streamline content on external sites, which is the main area for generation of leads. To improve the various sales funnels, you will have to increase of the number of funnels which is bringing in sales.
Power of Storytelling
Savvy B2B marketers use storytelling to execute their vicarious persuasion strategy to acquire new B2B customers. The stories create connections that open a path to embrace new ideas or old topics in new ways. Stories can be powerful tools for influence the target audience, by the means of building powerful campaigns.
Customer acquisition can be improved with better brand presence. To attract the attention of the target audience, a venture needs to cater to the target audience, on the basis of demand of the product, behaviour of the consumer, and costing of the services rendered. Whether it the launch of a product, or promotion of thought leadership, event marketing can improve sales of a company by leaps.
Reducing the Customer Churn Rate
The churn rate is the percent of customers who end their relationship with your company in a given period. You take the total number of customers who left your company during that period and divide it by total customers at the beginning of the period. The most innovative firms are using churn rate analysis as an opportunity to get ahead of losing customers rather than just accept it.
Simplicity is the key to loyalty rewards. Apple evangelist Guy Kawasaki mentioned, "The loyalty is voluntary and long-lasting”. Make a game out of it, partner with another company to have all inclusive programs, charge upfront for VIP services like Ola Select services, or awesome benefits to first time users.
The biggest appeal to a customer is cashback on purchases. In 2017, PayTM had announced it’s “The Big Cashback Sale” and 70% off. Moreover, this service also leads to the rise of the Digital Wallet. RBI has also granted the license to 11 payment banks for increasing financial inclusion and making payment process more efficient.
The impact of receiving back money spent through the digital wallet, showed increase of customer acquisition as well.
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