Customer acquisition refers to bringing in new customers - or convincing people to buy your products. It is a process used to bring consumers down the marketing funnel from brand awareness to purchase decision.
The cost of acquiring a new customer is referred to as customer acquisition cost (or CAC for short). Once the customer acquisition process is complete, it then hands itself to customer retention & re-acquisition.
How do you acquire customers?
You can acquire customers through a variety of marketing tactics, digital channels, and strategies (both on or offline). It often involves a mix of cross-channel marketing campaigns, which could include:
Social Media Marketing
Or any mix of marketing initiatives
In order for any customer acquisition strategy to be effective, it must evolve with ever-changing consumer behavior and preferences.
What Is the Importance of Customer Acquisition?
Customer acquisition is important because it increases recommendations, brand awareness, sales, and business ventures. When you acquire a new customer, odds are that they will check your business’s other products or services. If they continue to like what they find, they will recommend your business to the people they know, further increasing your number of customers. As you gain more customers, news of your business will spread and increase brand awareness. This, in turn, will drive sales for your business. The more sales you have, the more new products or services you can offer or new regions you can expand to.
Ultimately, customer acquisition is the driving force behind improving your business’s financial well-being.