There’s no denying that people are interested in exploring new companies and shopping platforms—now more than ever. Just take a look at the statistics: One in three bought from an unfamiliar brand in recent months while, on average, consumers browse at least three channels before making a single purchasing decision.
Potential customers are shopping all around you with the explicit intent of trying new goods and services—so, how will you attract them to your brand? Or, better put, what’s your customer acquisition strategy?
With so much choice in the consumer market, you’ll want to leverage different marketing platforms and customer acquisition channels to corral more clients than your competitors. From content marketing to referral programs, let’s explore 11 key techniques—as well as essential implementation practices and performance metrics—for optimizing your customer acquisition strategy.
Understanding customer acquisition
The customer acquisition process involves getting new customers to buy your products or utilize your services. And it’s important: Few brands grow to sustainable levels without concerted efforts to convince new clients to try them out. Customer acquisition strategies offer verifiable, repeatable techniques for finding these new customers and onboarding them to your local business.
While new companies and products hit the market daily, they’re all competing for a finite amount of customers and capital. That’s why it’s essential to develop a clear customer acquisition plan to demonstrate the superiority of your products and brand.
Customer acquisition strategies are also important because:
- Finding new customers is pricey – The average price varies heavily by industry, but it's never inexpensive. In real estate, for instance, acquiring one new customer costs almost $800. Advertising on Nextdoor, however, can significantly decrease your acquisition costs. Nursing charity Dementia UK, for example, scored client acquisitions for 30% less than anticipated by connecting with neighbors through Nextdoor.
- The already expensive act of acquisition is getting even more costly – Not only is customer acquisition already a costly process, but it’s becoming more expensive as the years go by. In the e-commerce industry, for instance, customer acquisition prices have risen 222% in less than a decade.
- Business professionals prioritize acquisition – Customer acquisition is a difficult process that requires more attention than similar tasks. In fact, 44% of businesses say it’s a key focus of their operations, compared to just 16% that claim the same about customer retention.
Key customer acquisition strategies
The exact customer acquisition strategies you leverage in your local business should depend heavily on your market, goals, and products. Try mixing several of these techniques to strike the right balance for your needs and ambitions.
1. Inbound marketing
Inbound marketing seeks to build strong, enduring relationships with customers by providing useful industry information and insider knowledge, rather than utilizing traditional advertising channels. 59% of sales professionals say this generates higher quality leads than other acquisition marketing techniques—meaning relationships you develop through this marketing strategy are more likely to lead to sales.
Los Angeles realtor Clinton Brown is a master of inbound marketing. Through a prominent presence on Nextdoor, he’s been able to supply homebuyers with expert advice, connect with more clientele, and improve his local business, all while fostering enduring relationships with people in his community.
2. Content marketing
Content marketing is the process of creating and sharing written and visual material online with the intent to attract new customers. Think about content such as:
- Blog posts
- Branded social media videos
- Graphics and photos
All of these and similar kinds of online material fall under the scope of content marketing.
Content marketing is a highly effective and trustworthy way of generating leads. 70% of consumers prefer learning about products from articles rather than ads, for instance. Likewise, nearly half of all consumers view three to five pieces of related content before making a purchase—so start creating more for your local business.
3. SEO
Search Engine Optimization (SEO) utilizes various tricks and techniques to elevate webpages to the top of Search Engine Results Pages (SERPs). The goal of SEO is to be the first SERP link when customers search for a term related to your local small business.
SEO strategies are complex and constantly changing, but some techniques you can use to start climbing the ranks include:
- Using descriptive URLs that include details about your pages’ contents
- Linking to relevant information on similar sites
- Adding high-quality images with descriptive text to your site
4. Outbound marketing
Outbound marketing is a time-tested lead-generation technique that involves reaching out directly to a potential customer and informing them about your business. Some common and recognizable outbound marketing techniques include:
- Cold calling and emailing
- Conventional mail
- Tradeshow appearances
- Billboards
- Event sponsorships
- TV, print, radio, and online ads
Outbound marketing is generally inexpensive in comparison to other acquisition marketing strategies. However, it doesn’t generate as high quality leads.
5. Email marketing
You can reach 4.5 billion consumers around the globe via email. In fact, companies are increasingly investing in the power of email marketing as a customer acquisition method and are being rewarded with active customer relationships and financial gains.
77% of marketers have seen a notable increase in email engagement over the last year while reporting Returns on Investment (ROIs) as high as 3600%. This makes email marketing a highly successful customer acquisition strategy.
6. Partnerships and collaborations
Collaborating with other brands is a key way to tap into new markets and quickly build your base. And, with 82% of business leaders looking to expand their roster of partners, there are plenty of strategic alliances waiting to be formed.
7. Affiliate marketing
Affiliate marketing involves employing third-party advertisers to promote your local business and generate leads. This customer acquisition method typically involves promoters sharing products online and receiving a commission for each click, purchase, or client they generate.
If you’ve ever watched a video online and the creator directed you to their personalized e-commerce link, you’ve seen affiliate marketing in action. Due to this, it holds a close connection to influencer marketing.
8. Influencer marketing
Working with social media influencers is the modern version of celebrity endorsements, and it’s a key way to build trust in your brand—especially among younger generations. 85% of marketers say an influencer marketing strategy boosts their customer acquisition efforts and nets an almost 600% ROI.
Start direct messaging influencers in your industry or area and offer incentives to collaborate—it could be the beginning of a beautiful partnership.
9. Referral programs
Not everyone feels comfortable recommending brands to their family and friends—but, if you incentivize them, they may do it anyway. Get more customers to refer you by offering:
- Discounts
- Free items
- Exclusive deals
An incredible 92% of consumers trust recommendations from their friends and family. So, leverage this confidence to build your brand’s reputation and expand your business.
10. Customer retention and loyalty programs
Retaining customers can be even more important than acquiring them. That’s because an existing customer is up to 65% more likely to buy than a new customer and spend, on average, 67% more than first-time clients.
Customer loyalty programs are exceptional ways to reward your clientele and keep them coming back for more. To show your customers how special they are to your business, you can:
- Give them a free item after a certain number of visits
- Offer them a future discount after making a purchase
- Provide exclusive access to sales over the general public
11. Nextdoor lead generation ads
Lead gen ads on Nextdoor are a new way to reach and connect with potential customers. People on Nextdoor are already in a high-intent, action-oriented mindset looking to get things done, and lead gen ads put your business in front of them. Neighbors can complete your form directly in-app, and you can download the leads from Nextdoor Ads Manager.
Learn how to get up lead gen ads on Nextdoor today.
Steps to develop a customer acquisition strategy
Successful customer acquisition strategies can bolster your customer base, boost your bottom line, and benefit your brand reputation—but they take careful planning to execute. To implement an effective customer acquisition strategy for your local small business:
- Identify your target audience – Base your ideal customer on factors like geographical location, fitness for your products and services, and demographic interest in your brand.
- Set clear, achievable, and actionable objectives – Establish concrete goals for customer base size, sales, and similar performance markers.
- Leverage the correct customer acquisition channels – Choose your acquisition channel based on your target audience. Where do they hang out in the real world and online? Focus most of your resources on their favorite platforms for optimal success.
- Set budgets and allocate resources – Most local businesses have a finite amount of capital and resources. Set a firm budget and carefully decide how much to allocate to different operational tasks, such as customer acquisition.
- Measure and analyze your performance – Customer acquisition strategies may not always be a home run out of the gate. They can take monitoring, assessment, and revamping to net the most potential clients for your local business. Measure Key Performance Indicators (KPIs) for your customer acquisition campaigns and, if they’re not living up to your expectations, rework them as necessary.
Measuring the success of customer acquisition strategies
To ensure your customer acquisition strategies are working as planned, track and assess essential KPIs, such as:
- Customer Acquisition Cost (CAC) – CAC measures how much you spend to attract a single customer. With effective acquisition strategies, you can lower your acquisition spending. To calculate CAC, pick a period and divide the total number of customers you gained by the amount you spent on acquisition strategies.
- Customer growth rate – This represents the percentage of new customers you’ve acquired over a given period. To calculate it, subtract the number of customers you had at the start of a period from your current count. Then, divide the result by the amount you had at the period’s start. Finally, multiply by 100 to find what percentage of your customers you acquired over the period.
- Churn rate – In contrast to customer growth rate, your customer churn rate measures the rate at which customers leave your local business. For maximum success, you want your customer churn rate to be as close to zero as possible. To add it up, divide the total number of customers you lost over a period by the total gained during the same time. Then, multiply by 100 to identify the percentage.
Most effective Customer Relationship Management systems (CRMs) should be able to calculate these KPIs with little trouble. They’re key tools for organizing your customers and operations and, with Nextdoor’s lead gen CRM integration coming soon, there’s no reason not to implement one in your small local business.
See related: How to increase customer lifetime value
Leverage Nextdoor Ads Manager to optimize your customer acquisition
Implementing effective customer acquisition strategies can attract more clientele at a lower cost. Leveraging key marketing platforms—such as social media, email, and Nextdoor—is your ticket to appealing to a larger base and converting more potential customers. Just be sure to measure your customer acquisition strategy’s performance and tweak your techniques, if necessary.
One platform you can always rely on to perform, however, is Nextdoor Ads Manager. Nextdoor Ads Manager allows you to closely target your ideal clientele based on factors such as home ownership, age, gender, and more. You can even target users based on their interests so you know your ads will always land in front of high-intent, highly engaged eyes.
Try Nextdoor Ads Manager for your local business—your neighbors are already there, waiting to become your new clientele.
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