demand generation builds or creates enough interest for a consumer to act. If you offer an industry e-book for download on your website in exchange for a visitor’s email address, that email address is a possible lead. Both of these terms are useful for business owners to know and understand, but they play second fiddle to the concept of developing a customer acquisition strategy. Think of customer acquisition as an umbrella term that encompasses every step you take to identify and convert customers. Your lead generation and demand generation strategies both fall under the customer acquisition umbrella. So are your marketing and sales departments, and sometimes your customer service department.
Examples Tactics
of
Customer
Acquisition
For a concrete idea of what customer acquisition is, think about any marketing or sales tactic you’ve used in the past. Those strategies are for customer acquisition. Some of the most common forms of customer acquisition include: Building a website to showcase your products
or services Creating social media pages for your business Putting together a Google Ads campaign Attending a local trade show Calling leads to set up sales meetings Direct mailing Asking for referrals
What Is Customer Acquisition? The Metrics and Terms to Know What does it really mean to acquire customers, and where do terms like “demand generation” and “lead generation” fit in? Demand generation means reaching out to an audience of potential customers through different marketing channels to grow their interest or curiosity in your company, brand, products, or services. It’s an important part of both acquisition and retention, as demand generation occurs throughout a customer’s journey from disinterested party to fiercely loyal brand advocate. For example, demand generation for the latest iPhone can target consumers who use smartphones from Apple’s competitors as well as iPhone enthusiasts who are on the fence about upgrading to the newest iteration. An aspect of demand generation is lead generation, which refers to identifying potential customers who are known to your marketing and sales teams as “leads.” A lead is born when your efforts at CANADIANSME MAGAZINE I AUG 2020 I
37
Anything you do to try and get customers is customer acquisition, even cold calling people who have never heard of you. Many small businesses make the mistake of trying lots of different marketing and sales tactics without a clear strategy or without carefully assessing the results of their efforts. Others stick to the same tactics year after year even when response rates dwindle. Getting more customers through your door (virtual or physical) isn’t about trying every customer acquisition strategy under the sun. It’s about improving your customer acquisition process. That starts by developing a clear and organized customer acquisition strategy.
