What is new customer acquisition?
Per about.com customer acquisition is the term used to describe the process of bringing new customers to a particular brand, product, or service. This process almost always has costs associated with it and this is known as ROI or return-on-investment. While there are many different ways to acquire these customers, some methods can be tracked, others cannot.
Just to clarify for you if you’re acquiring a customer they are obviously new.
There’s a blog post written by the one and only me – Kurt Kummerer that will help with your new customer acquisition efforts, I highly suggest you take the time to read it.
Recommended Reading: 1 Customer Acquisition Marketing Tip You Need To Use
Sweet Georgia Brown.
- It costs 5 times as much to attract a new customer, than to keep an existing one. (Source: Invespcro)
Which goes with the premise of this whole blog post as to why it’s so difficult for you as a small business owner to get a new customer.
Now that you’ve read this far, why should you keep reading?
Here’s the answer.
- Because we’re going to dive into the reasons why new customer acquisition is so stinking hard and the reasons might surprise you.
Then lets get after it my friend.
What is new customer acquisition and why is it so frigin hard as a small business owner?
We gave an official definition of what is new customer acquisition a little earlier, so you can refer to that.
Do you want a simpler definition?
[tweet_box design=”default” float=”none”]New customer acquisition is the process of bringing on new customers[/tweet_box]
Really that’s it.
Now you and I both know there is more to it than that, but in its simplest form that’s what it is.
Would you agree?
Now your ideal customer is typically someone using a product/service that your competitor offers and they’ve been with your competitor for some time.
Sound about right?
I thought so.
Now does your competitor offer something that you don’t?
Maybe, maybe not.
So why can’t you for the life of you bring that customer over to you?
Does it have to do with the fact that you can’t attract them or draw them in? No.
Is your product/service inferior on all levels? No.
Are your products/services more expensive? Could be.
As you know your customers will pay more for your product/service if it solves their problems and meets their needs. So, price is not the issue.
So, what gives?
9 times out of 10 it has to do with 2 things.
- Relationship with that company, its people, and owner(s) or
What are your thoughts?
Over time you can overcome the relationship aspect as their present company will make a mistake down the line or change the way they do business causing that customer to look for other options.
This is a virtual certainty to happen. You just have to be patient and wait as other companies will screw up and you can reap the benefits.
What about habit?
[tweet_box design=”default” float=”none”]The hardest thing to break is a habit.[/tweet_box]
That is the chief reason as to why it is so hard to acquire new customers.
Your customers have been doing business with the same people for months, years, decades even.
It is a habit for them.
Much like brushing your teeth twice a day is a habit for you.
And as we already mentioned habits are the hardest things to break.
Let’s touch on another example that will resonate with you in regards to habits.
Are you okay with that?
Say your habit is that you drink 3 cans/bottles of Pepsi every day and you’ve been doing that for years.
Now you realize that it would be better if you drank water instead of Pepsi every day.
How hard do you think that is going to be for you to do?
I’ll answer for you.
Really, really hard, but not impossible. Also, it is going to take a LONG time.
Why is that?
As with any lifestyle modification you know you need to make changes for the better (as is the case in our going from Pepsi to water example), but you think about it constantly and contemplate it for weeks, months, years sometimes before you act on it.
Your prospects go through the same process – they know your company provides them with what they need, but they sit on it. Because breaking that habit is the hardest thing for them to do.
Are you picking up what I am putting down?
What is another issue that interferes with your customer acquisition efforts – making it hard as hell.
We as people hate change for the most part.
Why is that?
- Its uncomfortable.
- Fear of the unknown.
- Creates stress and anxiety.
- Can’t predict the future.
- Fear of failure.
Your prospects feel the same way, which is why they continue to do business with the same people. Regardless of whether all of their needs are being met or not.
Sounds counterproductive doesn’t it?
I would say so, but that is the reality of it I am afraid my friend.
Change is another example as to why new customer acquisition is so hard and makes you want to pull your hair out some days.
As you know, it is a necessary evil, but as long as you approach it from a realistic point-of-view you’ll do just fine.
Furthermore, it lends credence as to why you should pay as much attention to your existing customers and keep them happy, because it is so difficult to replace them if they should leave.
Not to mention how much easier it is to sell them additional products and services, thus affording you the ability to double your revenue, simply by picking up the phone.
On a related note there is a blog post I recently put together about customer retention that fits in with what we discussed two seconds ago. Go give it a quick once over and come back to finish reading this blog post.
Recommended Reading: Customer Retention Strategies For Your Business
So, that wraps it up regarding what is new customer acquisition and why it is so damn hard.
Do you have a customer acquisition process in place for your business?
Is that process working?
Is that process efficient?
Is that process cost-effective for your business?
If you could improve that process would you?
Do you need help in figuring out which parts of your process should stay or go?
If you’re answering “Yes” to all of these questions then my hats off to you. Business must be awesome!
Otherwise you and I should talk. Let’s see how I can get you to where you want to be.