Read any business basics book, and most will give the same advice; new customers are crucial to any business.
This is why most companies spend vast sums of money acquiring these customers. Without them, they won’t just stunt their growth – they’ll struggle to survive.
Of course, as the last paragraph has just indicated, this is an expensive business. Everyone is vying after the same group of people; generally speaking, demand always outweighs supply.
Furthermore, there are obvious logistical challenges. Whether it’s increasing the size of your team to deal with more enquiries, or even bolstering your insurance package for the same reasons, always remember the risks that accompany business growth.
Following on from the above, let’s now look at four different ways you can try and attract new customers.
Reconnect with past customers
You’ve probably heard the adage that it’s easier and cheaper to keep an existing customer than to attract a new one. The logic is simple: it costs more to attract a new customer than to keep an old one.
This is why your business should always look for ways to reconnect with past customers. Whether through re-engagement emails, social media posts, or even a phone call, reaching out to past customers is a great way to remind them of your business – and, more importantly, why they should come back.
Referrals are a great way to attract new customers, as they often come with a recommendation from a friend or family member. This is why referral schemes are so popular; they incentivise customers to recommend your business to their friends and family.
There are a few different ways to set up a referral scheme. You could give customers a discount for every new customer they refer or award them a gift card or other prize. Whichever you decide to do, make sure the rewards are enticing enough that customers will be motivated to refer their friends. In other words, don’t just expect to set up this scheme and let your existing customers do all the work. It needs to be worth their while.
Understand your marketing numbers
One of the best ways to attract new customers is to understand your marketing numbers. This means having a good grasp of your acquisition costs, customer lifetime value, and churn rate.
By understanding these numbers, you can better target your marketing efforts and allocate your resources in a way that’s most likely to result in new customers. You’ll also need to understand them on a granular level; in other words, understanding what channels drive profit. Many small businesses will throw money at marketing but will never know what is working and what isn’t.
Find the balance between brand building and direct response
So far, a lot of today’s advice has focused on direct response marketing. This refers to the marketing activity that directly results in a sale or conversion. The alternative is longer-term and building a brand. This doesn’t always have an immediate impact, but it can be more beneficial in the long run.
Finding the balance between these two is tricky, but it’s essential to do it if you want to attract new customers. Too much focus on direct response will be expensive, while too much emphasis on brand building will make you struggle to make any sales. Strike the right balance, and you’ll be able to attract more high-quality leads for a more competitive cost.