6 Steps Customer Acquisition Formula
“IT’S MUCH EASIER TO DOUBLE YOUR BUSINESS BY DOUBLING YOUR CONVERSION RATE THAN BY DOUBLING YOUR TRAFFIC.”
– Jeff Eisenberg
From my 4 years of Digital Marketing Experience working with top Global Brands, I can tell you there will be moments where your Digital Marketing Strategies just don’t work and you feel like quitting.
DOES ALL YOUR DIGITAL MARKETING STRATEGIES LEAD TO POSITIVE ROI?
In the initial phase of my Digital Marketing Career, 75% of the strategies failed because I never used a definite Digital Marketing Funnel to acquire customers. After Which, I researched and arrived at this advanced customer acquisition formula. All the top brands use this Customer Acquisition Formula.
All my Digital Marketing Strategies worked only when I followed this advanced Customer Acquisition Formula which I will be explaining in detail in the below article.
6 STEP CUSTOMER ACQUISITION FORMULA FOR DIGITAL MARKETERS
Irrespective of the Digital Marketing platform you choose, you should remodel the business to adhere to the 5 step customer acquisition process in order to make Digital Marketing work for you.
STEP 1: DEFINE A LEAD MAGNET
First step of your customer acquisition process is defining a lead Magnet. Before selling a product/service, it’s important to identify who your ideal customers are, where they are and what they will buy.
Lead magnet is an appealing offer provided to your prospect in exchange of their Email id and Contact number.
The goal of the lead magnet is to build your prospect database.
Some of the Example of Lead Magnets
1. Free Webinars
2. Free PDF or Ebook Downloads
3. Subscribe to the blog list
- Your investment in creating a lead magnet should be your skillset and Time.
- Assign a minimum Marketing budget to Make prospect consume your lead magnets
- 100 website visits should consume 5 lead Magnets
STEP 2: EMAIL NURTURING THROUGH AUTORESPONDERS
“DON’T BE A HUNTER, BE A FARMER”
Integrate landing page with Email Marketing CRM’s like Get Response, Mail Chimp etc, and design autoresponder nurturing sequence.
In step 1, you have identified who your ideal customers are. Now in step 2, you have to nurture and make them part of the sales funnel. Create immense value to your prospect database by sending them timely Emails.
Your autoresponders sequence can have below content:
- Welcome Email and Brief description of your product/service
- Success Stories and Testimonials
- Company Recent Achievements
- Expert Advice
- Promotional Mailer to Sell TripWire which will be explained in the Step 3
“EMAIL MARKETING TO THIS DATABASE WILL BE THE HIGHEST CONVERTING TRAFFIC”
The Primary Goal of Email Nurturing campaigns is to get prospects who have consumed lead magnets to the sales funnel and make them experience your product/service.
- Monthly investment for Email CRM based on the number of subscribers and one time investment on Email Autoresponder content.
- 10 prospects who have consumed lead magnets should lead to 1 tripwire purchase at the end step 2
STEP 3: TRIPWIRE
“10% OF THE PROSPECTS WHO CONSUMED LEAD MAGNETS SHOULD BUY THE TRIPWIRE AT THE END OF STEP 2”
In this step, You define an irresistible offer which your prospects can’t reject and make them part of your sales funnel to experience your product/service.
Some of the Tripwire Examples:
- 1$ Trial from Whatrunswhere.com
- Paid 1/2/3 days Workshops
- Linkedin’s free One Month Trial for Premium Membership
Step 1 and step 2 are the automated process, you actually start engaging with your customer after they buy Trip. At this step you need to build trust and make them comfortable to buy your higher value products/Services.
Tips for the Tripwire:
- It should be an irresistible offer
- Don’t charge more for the Tripwire.
- By Selling you make lesser or no profit. But don’t go into losses.
- 30% of the prospects who bought your tripwires should buy your higher value offerings.
STEP 4: SELLING CORE PRODUCT OR SERVICE
“30% OF THE PROSPECTS WHO BOUGHT YOUR TRIPWIRES SHOULD BUY YOUR HIGHER VALUE OFFERINGS”
From above nurturing process, cold prospects have become warm and they are comfortable buying your higher-value products. At the end of step 4, sell your core product/service.
Core product/service is your actual core offering.
Some Examples of Core product/service:
- 6 Month Digital Marketing Service offering
- Linkedin Annual Premium Membership ( Sales navigator, Talent Solution and Learning Solutions)
- Annual Subscription to your Tool
STEP 5: PROFIT MAXIMIZER
“IT IS EASY TO GET MORE MONEY FROM YOUR EXISTING CUSTOMER THAN ACQUIRING NEW CUSTOMER”
In this Step, you upsell/downsell/cross sell the customers who has bought core product with the products/service which has high profit margins.
Some of the profit Maximizers examples are :
- Linkedin: Up Selling Linkedin Sales navigator to the customer who has bought learning solution/Talent Solution)
- Digital Marketing Services company : Upselling Website solution for the customers who has bought Digital marketing services
- E-commerce: Selling Mac book Accessories to customers who has bought Mac book
- Training Firm: Upselling Mentorship programs for the customer who have purchased training programs.
Step 6: Create a Return Path
Up until now, we have taken the consumer from a stranger to a paying customer. Now it’s time to convert this paying customer into our loyal fan & make him/her our brand advocate.
To achieve this objective, we must keep in touch with our customers constantly. This can be done via email marketing, SMS marketing, retargeting ads on facebook & google.
The goal here is to delight the customers by making them feel extra special. Shooting out an email wishing them on their birthdays, anniversaries or any special occasions will ensure that your brand name remains on top of your Customer’s minds
In other words, the brand recall value increases.
At this point, you might be wondering “Why should I go the extra mile in wooing my customers?”.
Remember this: Acquiring new customers is far more difficult than retaining your existing ones.
The amount of time, money & resources required to acquire new customers is a whole lot more in contrast to customer retention. Extra points if you’re doing both successfully.
Plus, you don’t need to spend money on ads, create lead magnets/tripwires to sell products to your existing buyers. This makes things a whole lot easier & simpler.
Your existing customers tend to trust you, at least to a certain degree.
Creating a return path ensures that they don’t think twice before swiping their cards to purchase your products. In simple words, the customer lifetime value (LTV) increases drastically.
Once it’s confirmed that a customer has repeatedly purchased you, it’s clearly evident that he/she is a loyal fan who loves the products/services you offer.
Now it’s time to step up your game by making your loyal fan/customer into your brand advocate.
Give them exclusive deals, bonuses & offers. Also, make them your affiliates. Doing so will expand your brand reach even further, while they earn a commission. A win-win for both the parties!
If you’ve managed to reach this stage after building & implementing your funnel ,Kudos.
Having a bunch of happy, satisfied customers can pay huge dividends in the long run. The ultimate goal should be all about delivering value. Money is just a byproduct.
All that’s left for you to do now is get creative with your offers, make minors tweaks to your funnel & keep testing.
Rinsing & repeating these six steps will ensure that the revenue keeps flowing in for years to come. Also, remember that “Systems don’t fail, people do.”
The brand is a promise. At every stage of marketing, build trust and thought leadership to make your prospects comfortable to write paycheques to avail of your services.
If you want to build an online presence for your brand, make sure you remodel your business using the above 5 step advance customer acquisition formula.