4 Ways to Improve the ROI of Your Customer Acquisition Strategy
A major goal for most businesses is the acquisition of new customers. It is easy to determine the importance of new customers to your business, however, attracting and converting a new customer is not a stroll in the park. It is proven that more companies and agency clients focused more on customer acquisition than […]
A major goal for most businesses is the acquisition of new customers. It is easy to determine the importance of new customers to your business, however, attracting and converting a new customer is not a stroll in the park. It is proven that more companies and agency clients focused more on customer acquisition than customer retention (44% vs. 16% for companies and 58% vs. 12% for agency clients). A major reason for this is customer acquisition strategy yielding low ROI. In this article, you will learn four (4) ways to improve the ROI of your customer acquisition strategy.
1. Analyze your Audience
What is Target Audience Analysis? Everyone that might be interested in your product or service is your ‘Target Audience’. Audience analysis should be a key component of your customer acquisition strategy. The essence of adopting this strategy is to identify and assess your audience. Even if you have a huge budget, you will not want to waste time, effort and money in reaching a wrong audience. Bear in mind that your target audience comprises different people who have a different problem, visit different websites and hang out on different social media. For instance, if your product is Word Processing Software, your target audience (persona) will comprise freelance and professional writers, students, and editors, etc. You will have to approach them using different content. This will not be possible without a proper understanding of audience analysis.
Benefits of Target Audience Analysis
It helps you to identify and target unique audience that may be interested in your product or service.
With it, you can create personalized content tailored to meet the need of targeted people group.
You can build a long-term relationship with your customers while meeting their specific need
It helps to Increase conversion rates leading to increased customer base
Planning your Audience Research
The scope of your research will depend on the size of your campaign and the knowledge of the niche you are working on. Since your research will involve an interview with a real customer, you should be equipped with the right question or a template to guide you. The proper thing to do is to start on a broad scale and narrow it down. Get started with an overview of your website audience using Google Analytics. This tool is great in that, it separates your audience information into demographics and interest.
You need to be equipped with the right demographic data for your customer acquisition strategy to be effective. Particularly, if you intend to advertise on social media – Facebook, Twitter, LinkedIn, etc. The effort you put into getting the right demographic data will pay off because your advert will reach the right audience and not be restricted by the promotion channel. Below are examples of demographics your audience could fit into. The list above is not exhaustive, also remember you don’t have to waste time on any demographic data that have no relevance to your product or service.
Psychographics data includes customer attitudes, aspirations and other psychological criteria. Three major areas to focus on are – interest, activities, attitudes or opinions. You can collect Psychographic data through surveys, an interview with a customer, and website research. You can also use analytic tools like ClickTale, CrazyEgg, Bounce Exchange, and Qualaroo. Data gathered in your audience analysis becomes the metrics you will use in decision making on how best to reach your audience. No more guesswork.
2. Engage With Influencers
Influencer marketing is a new and growing phenomenon in modern marketing. According to a survey of 272 marketing managers, Influencer marketing is the fastest growing online customer acquisition strategy. Traditional marketing and customer acquisition strategy are diminishing in impact. Majority of marketers believes that through Influencer marketing, companies gain high-quality customers. Source: Tomoson When you engage influencers, it will improve your brand advocacy, create awareness for your brand and help you reach a new targeted audience. Influencer marketing can open a new spectrum of the audience for your company to connect with. According to a survey, 49% of potential customers rely on influencer’s recommendation. Prospective customers feel safe when influencers make recommendations. The assumption is that the influencer trusts the product/ service and that it will meet expected needs.
Why Engage Influencers
Incorporating Influencer marketing into your customer acquisition strategy is a great idea for reaching your target audience. Here are reasons you need to engage influencers.
Influencers have access to a different and larger audience than your company
You will see more click-through (conversions) if an Influencer shares your content with their followers.
With influencers, you can build a cordial and lasting relationship with your clients/ customers.
Influencers deliver a greater return on investment- an average of $6.50 in revenue for every $1 spent.
Where to Engage Influencers Facebook: Facebook is the leading platform as far as influencer marketing is concerned. Blogs: Blogs occupy the second slot. Other platforms where you can engage influencers for your customer acquisition include YouTube, Instagram, Twitter, Pinterest, Google+ etc.
Guide to Define your Influencers
There are hundreds of thousands of influencers online. All of them cannot be good for your brand. The result of your audience analysis is key in choosing the best influencer for you. The best influencer (s) for you is the influencer that have access and influence over your target audience.
The potential influencer must have a large following. You may have to do a little research to find out. Check out their social media channels to determine their cumulative fan base.
These refer to the content the prospective influencer has been sharing. Does it match your own content goal? You want action and not awareness.
Bossism: You can use the sites influencers search tool. You can also keep track of the content your influencers are sharing. Followerwonk: This is a Twitter analytics tool. You can use it to search for user bios of individuals. Little Bird: A quick way of finding and analyzing thousands of influencers; particularly those validated by their online peers.
Basic Steps to Engage with Influencers
Create a natural bond: Build an organic relationship. Start by following influencer across platforms and also engage with their content. It is relationship before business opportunity.
Start Giving: Don’t be a taker, it shows ulterior motive. Look for ways to help
Deliver Value: What value can you offer the influencer? What is his/her pain point and how can you be of value
Commendation. Let them know how they inspire you. Everyone can connect with commendation and not flattery.
Talk to their agents: Many top influencers have agents. Go through their Agents. Respect laid down procedure.
3. Offer a Demo of your Product
A product demo summarizes how a product works. Anyone interested in your product demo will get to see its features and benefits attached and how to use the product. A demo is a popular strategy that companies that sell products use as a lead magnet. Your company can give your website visitors or attendees at your webinar the chance or opportunity to ‘test’ your product. To ‘test’ the product, your visitors will have to give their email or other details on your opt-in form. Kissmetrics used product demo to increase their conversion by 10% when compared to free trials. You are not pushing for sales at first, but through product demo offer, you can collect the email address of people in your target audience. A study reveals that people that give their email address are 7 times more likely to purchase the product, Look at this demo offer from LeadsBridge
Create a Great Demo Video that converts
Another workable strategy is to create a Video Demo for your product. The video demo could show how to assemble and operate your product. The video demo of your product should:
Address the problem that the product solves
Give a value proposition – What the product can do and its benefits
Show how the product works to solve the problem
Provide a strong link between what the products do and your customer’s pain point.
Give a strong call to action at the end
Give your video demo good background music. However, don’t allow the background music to override the narration. Else, your target customer will only remember the music and not your sales pitch. Let the video transition be seamless. In using text- use clear font type, size, and color on a contrasting background. Find more information on product demo here.
Promote your Product Demo
Do a promotion for your product offer and your Product demo video. On your website, you could insert a ‘request for demo’ form or place a call to action as shown in the example of LeadsBridge above. You can promote the product demo video on video-sharing site or on a platform where your target audience hangs out. Your video could also serve as the content that your Influencer will share with their followers. Sharing videos is an endorsement from the influencer.
Should you request a Credit Card for demo sign up?
There are two different schools of thought when it comes to requesting credit card while signing up for demo – one for and the other against the idea. Not requiring a credit card at sign-up stage makes the prospects more inclined to sign up. Majority of prospects considers giving out of their card details as a greater commitment to a product they have not tested. The report of the study conducted by Totango revealed that trial sign-ups and eventual trial conversion was more successful when prospects were not required to give the credit card details. Mark Cuban says is all, “Make your product easier to buy than your competition or you will find your customers buying from them, not you.”
4. A/B Test on your follow up
A/B Testing, otherwise known as split testing or bucket testing is a comparison method employed to test the effectiveness and conversion of two variants of a web page or app. It’s a test of better performance between variants of the same web page or app. In the experiment, two or more variants of the same page are shown to users/ visitors. Statistical analysis is then carried out to determine which of the variants performed better based on conversion goals. Two Variants of the Same Page Source: Optimizely For instance, you can test your landing page and create variations. Items to on your landing page includes–headline (Header), photography, call to action, adding a video, position of adverts, follow up, etc. If you are thinking of optimizing your company’s website, A/B testing allows you to make better informed decisions. You shift from guesswork to factual decision. Testing provides you with metrics that produced positive According to Optimizely, an experimentation platform, ComScore A/B tested logos and testimonials to increase social proof on a product landing page and increased leads generated by 69%. Marketers can test their ad copy to learn which version attracts more clicks. When you also test the landing page of your website, you can know which variant (layout) performs better in converting visitors to customers. It is better to test one change at a time to correlate the change and its effect on visitors’ behavior. A/B Testing Process and Framework
Data Collection: This is the first step in A/B testing process. Check Google Analytics on your website to identify depending on which page has the highest traffic. It is better to start with high-traffic areas so you can gather data fast.
Identify and Set Goals: This depends on what you want to achieve. However, conversion goals are the metrics you will use to determine which variants perform better.
Come up with Hypothesis: Come up with assumptions, premise why you think the variants will perform better than the existing version. Prioritize your ideas.
Create Variations: If you don’t have a webmaster, you can outsource the project of creating variations of the page. You can also use an A / B testing software.
Result Analysis: Analyze your result to determine any statistical difference.
The 4 different ways of improving the ROI of your customer acquisition strategy discussed in this article are tested and proven. None of the methods require a huge financial budget. Your company can use any of the strategies singly or in pairs. The different methods will produce a varied result, depending on your business, product, and service. You can adopt any method after careful consideration.
Growth Hacker at LeadsBridge. A suite of automation tools for Facebook Advertisers.
Eager digital marketer, nurtured by news and strategies of this world, helping people and businesses to build and reinvent their online presence.