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The Ultimate Guide to Customer Acquisition


ultimate guide to customer acquisition

Spending money on acquiring customers is worth investing in as it helps you build the base for your business. Did you know that 44% of the brands focus more on customer acquisition and only 16% of the brand focus on customer retention?

By decisively investing in a customer acquisition strategy, you can attract your target audience to your eCommerce store effectively. Customer acquisition doesn’t end with bringing in new customers, and it also increases the probability of retaining them for an extended period.

Day by day, acquiring new customers is becoming more expensive and challenging. So, how do you overcome this?

It’s just a piece of cake! Yes, all you need to do is learn about your customers and their interests and do a background check. Remember the ‘W’s’

  • What is your customer’s favorite product?
  • What are their expectations?
  • What are their goals?
  • What are the challenges they face while making a purchase?

We’ve got you all covered with our ultimate guide to customer acquisition. Figure out what customer acquisition is, its importance, how to calculate customer acquisition costs, and ways to reduce your customer acquisition costs.

Dive deep into the blog to learn more about customer acquisition strategies.

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What is customer acquisition?

Customer acquisition is the process of acquiring potential customers to visit your brand and make a purchase.

With the best customer acquisition strategy, you can attract your target audience, encourage them to be a part of your brand, and gradually turn your visitors into customers and loyal customers. Additionally, you can cost-effectively increase your revenue.

This process of acquiring customers will require an amount for you to spend, which is called “Customer Acquisition Costs.”

What is the purpose of customer acquisition?

The purpose of customer acquisition is to find an easy approach or strategy to draw customers to your eCommerce store. Also, just relying on natural customer acquisition alone will not ensure constant profitability for your brand.

There are eCommerce stores specializing in customer acquisition, and they employ some targeted tactics to encourage customers to make purchases from your brand. The purpose of this act is to establish a long-lasting strategy for acquiring new customers and increasing revenue naturally.

Since you’re looking to promote your brand, this process may sound like marketing. But there’s a huge difference between customer acquisition and marketing. Let’s find out what!

Customer Acquisition vs. Marketing

Marketing aims to promote and sell products and involves activities like advertising, branding, and sales promotion. On the other hand, customer acquisition requires action. Let’s look into a few examples to get a clear understanding.

Let’s say you develop a content marketing strategy that includes blog posts, social media posts, and email newsletters to engage with the target audience. That’s marketing.

Meanwhile, acquisition tells what happens after your target audience reads the blog and social media posts. If they visit your eCommerce store after reading those posts and purchase your product, that’s acquisition. In simple terms, ‘Marketing’ builds awareness, and ‘Acquisition’ boosts revenue.

Are you wondering about the difference between lead generation and customer acquisition? Just keep reading.

Customer Acquisition vs. Lead Generation

Customer Acquisition and Lead Generation have many differences, and it’s simple. Lead generation is the first stage of acquiring customers (also known as the Customer Acquisition Funnel).

Customer acquisition vs lead generation

First, a person should be aware of your brand before they decide to make a purchase from your store. Like, what you are selling, what you are famous for, and your product’s quality. This is typically a result of lead generation.

For example, you run a small clothing boutique and want to acquire new customers. You could use a variety of tactics, such as advertising, running social media ads, and reaching out to local influencers to promote your store.

Now they are attracted by your advertisement and pause a second to discover your store. It happens when a person or stranger turns into a lead. (but still not a regular customer.

To turn leads into customers, you might offer a discount or special offer to customers who sign up for your store or follow your social media accounts. You can gather customer data about who is interested in your store and your products.

You could then use those data to send out targeted marketing messages and promotional emails to engage these leads further and encourage them to visit your store and make a purchase.

So, that’s how customer acquisition differs from lead generation. Moreover, all of these are the process of the customer acquisition funnel.

Why is customer acquisition important?

Customer acquisition is important for any business because it is the process of attracting and acquiring new customers. According to a survey, 57% of marketers consider customer acquisition the most crucial aspect of their marketing expenditure.

Acquiring new customers is a primary driver of revenue growth. You can gain an edge over your competitors and expand your market presence. As more people become familiar with your brand, they may be more likely to refer it to others, which can further lead to customer acquisition.

Moreover, customer acquisition is a critical component of your brand’s success. The better you attract customers, the better the brand grows or thrives in the competitive marketplace.

Customer Acquisition Metrics

Customer acquisition metrics help you determine whether your investment in acquiring new customers is worth spending on for your eCommerce store. There are three customer acquisition metrics that you must know.

Don’t miss out, and keep reading.

Customer acquisition costs

Customer Acquisition Costs (CAC) is a key metric to determine the cost of acquiring a new customer. This metric helps you understand the expenses incurred during the sales and marketing to attract and convert a potential customer into a paying customer.

CAC includes all the costs of attracting and converting a lead into a customer. It includes expenses such as advertising, marketing campaigns, website development, sales commissions, and other expenses related to customer acquisition.

To calculate CAC, divide your total sales and marketing expenses by the number of new customers acquired during a specific period. For example, if you spent $10,000 on sales and marketing efforts in a given month and acquired 100 new customers, the CAC for that month would be $100.

Tracking CAC over time allows you to identify trends and adjust your marketing and sales strategies to optimize your customer acquisition process and reduce costs.

Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) represents the net profit a business expects from a customer throughout their entire relationship with the brand. This metric takes into account the customer’s purchase history, the frequency of their purchases, and the amount of money they spend on each purchase, as well as other factors such as customer referrals and retention rates.

By knowing the CLTV of your customers, you can make informed decisions about your marketing and sales strategies, such as

  • How much should you spend on advertising,
  • How much should you charge for your products or services, and
  • How you should engage with your customers to encourage repeat purchases.

Churn Rate

The Churn Rate measures the percentage of customers who stop using your company’s products or services over a given period of time. Churn rate is an important metric for your business to track because it directly impacts your revenue and profitability.

To calculate Churn Rate, divide the number of customers who churned during a given period (usually a month or a quarter) by the total number of customers you had at the beginning. The resulting percentage is the churn rate for that period. A high churn rate indicates that you need to improve your products or services, customer support, or other aspects of your customer experience to retain more customers.

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Customer Acquisition Strategies

Best customer acquisition strategies can help you significantly increase your customer acquisition costs. Here are the best customer acquisition strategies to acquire new customers. Don’t miss it!

Find your Right Target Audience

Make sure to find your perfect set of target audiences who will resonate with your brand and attract them. One of the perfect ways to attract your target audience is with the demographic data of your customers. With your customer’s behavior, preferences, and buying habits, you can easily target them.

Do Giveaways

Giveaways are one of the amazing ways to increase customer acquisition. When you give your customers a chance to try your products, they are more likely to stick with your brand.

Track how your giveaways work and how your customers respond to this type of customer acquisition strategy. When your customers love your product quality, there is a high chance that they will spread the word to their loved ones. So, this is when your customer acquisition rate gradually increases.

Set up a Referral Program

Implement a referral program that will help you acquire new customers naturally. Once satisfied with your brand and products, customers recommend your brand to their family and friends. Obviously, people trust recommendations from their friends.

To encourage customers to participate in your referral program, reward them with exciting deals such as – fixed or percentage discounts, free products, or free shipping. Rewarding existing and new customers will increase active participation in your referral program.

Email Marketing

Email Marketing is one of the best customer acquisition strategies you can apply now. Let your customers be aware of the new product range and the offers. So, email marketing allows your customers to discover more about your brand, products, and exciting offers that await them.

Use an automated email marketing plugin to save time and send automated emails to keep your customers connected with your brand. An email marketing strategy template streamlines planning and covers all essential elements for success.

Social Media Marketing

Acquire new customers using social media marketing and improve customer acquisition organically. Nowadays, people spend more time scrolling on social media. So, social media platforms like – WhatsApp, Instagram, Facebook, Twitter, or Email is one of the best ways to acquire and attract customers.

Use social media strategies to promote your brand and get noticed by your target audience quickly. There may be customers who are searching for similar products as you sell. So, don’t delay and miss out on your target audience.

How to calculate customer acquisition cost?

To improve your customer base without any loss in revenue, you have to focus mainly on customer acquisition costs (CAC). So, let’s find out how to calculate customer acquisition costs.

Step1: Determine the time period

Determine the time period that you want to calculate. In short, the time period you’re calculating can be for a year, quarter, or month.

Step 2: Measure your CAC

Add up all the costs associated with your sales and marketing efforts during the selected time period. Then divide the sum by the total number of new customers acquired over the time period.

Measure CAC

Remember, customer acquisition costs can vary depending on the brand, marketing strategy, and the size of the company. It is crucial to keep customer acquisition costs as low as possible to maximize the profitability of your business.

Ways to reduce your Customer Acquisition Costs

You can significantly increase your sales and revenue by reducing customer acquisition costs. Here are a few ways that will help you reduce your customer acquisition costs.

  • Ensure to focus on your target audience
  • Understand what your customers want
  • Try loyalty and referral programs
  • Reduce customer churn rate
  • Target customers using social media
  • Create great content
  • Retarget and bring customers back

WPLoyalty allows you to acquire customers easily with WooCommerce loyalty programs.


Customer acquisition is an important factor of any business growth. It involves understanding your target audience, creating an effective marketing strategy, and implementing loyalty programs. By implementing the various techniques outlined in this ultimate guide to customer acquisition, you can attract, engage, and retain customers, driving growth and increasing profitability.

It’s essential to remember that customer acquisition is an ongoing process that requires continuous evaluation and improvement. As customer preferences and behaviors change, businesses must adapt their strategies to remain relevant and competitive.

What are some effective customer acquisition strategies?

Many effective customer acquisition strategies include SEO, content marketing, social media advertising, referral marketing, and email marketing. The most effective method for your brand will depend on your target audience, budget, and goals.

How can I measure the success of my customer acquisition efforts?

You can measure the success of your customer acquisition efforts by tracking metrics such as website traffic, conversion rates, customer lifetime value, and customer acquisition cost. Setting goals and regularly monitoring and analyzing your metrics are important to optimize your strategy.

What are some common mistakes to avoid in customer acquisition?

Some common mistakes to avoid in customer acquisition include targeting the wrong audience, not focusing on your existing customers, using ineffective channels, and not tracking your metrics. It’s important to optimize your strategy based on your results continually.

How can I use social media for customer acquisition?

You can use social media for customer acquisition by creating engaging content, running targeted ads, and engaging with your followers. Choosing the right social media platforms for your business and targeting your audience is important.

What are some effective lead-generation techniques for customer acquisition?

Some effective lead-generation techniques for customer acquisition include offering valuable content, running targeted ads, hosting webinars, and implementing a referral program. It’s important to test and optimize your lead generation tactics continually.

How can I use email marketing for customer acquisition?

You can use email marketing for customer acquisition by building targeted email lists, creating valuable content, and using compelling CTAs to drive conversions. It’s important to personalize your emails and continually test and optimize your campaigns.

What are the 3 parts of the customer acquisition cycle?

The 3 parts of the customer acquisition cycle are awareness, consideration, and decision. Awareness involves making your target audience aware of your brand and offerings, consideration involves providing valuable content and nurturing leads, and decision involves closing the sale.

What makes a successful acquisition?

A successful acquisition involves achieving your goals, such as increasing revenue or market share, while minimizing risk and maximizing value. It’s important to have a clear strategy, identify the right target, negotiate favorable terms, and integrate the acquired company effectively. Communication and collaboration between the two brands are also crucial for a successful acquisition.

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Haridha P
Haridha is a content writer and a blogger. She has experience in B2B writing, SEO, and ecommerce plugins. Her interest also lies in reading novels, and she is always passionate about learning and exploring new things.
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