Inflation and a looming recession may strike fear in many individuals and businesses. Despite this, news outlets confidently report that the entrepreneurial spirit is alive and strong. In the remainder of 2022 and the upcoming 2023, we expect to see numerous small businesses pop up across the United States. Naturally, those launching a company will want to increase their chances of success going into the new year. Of course, that involves developing a strong customer acquisition strategy and harnessing the best customer acquisition techniques.
At Smart Circle, we closely watch market trends, competitor activities, and consumer behavior to pinpoint excellent ways of gaining and retaining customers. As there are specific overarching themes for the year ahead, we understand why concentrating on customer acquisition will be so important. We can also indicate how start-ups can navigate those situations. Learn more below!
1) Markets Are Saturated
There is always room for new businesses in our economy; however, that does not mean it is easy to make an appearance and establish a presence. There are likely many businesses competing within your industry and potentially creating and selling similar products to you. One traditional way to set up shop is to focus on selling units, effectively grabbing a substantial market share. However, focusing on drawing in and securing new customers is better. Of course, you will still sell items and set an excellent foundation for customer loyalty and repeat sales.
Yet, how do you accomplish that when a market is saturated or over-saturated? The key is to stand out from your competitors. You can achieve this by solving consumers’ problems more effectively, fulfilling consumers’ needs in a better way, or creating a product that no one has invented yet. However, that’s not all you can do. You can also market dramatically better than your peers.
Consumers can only know a product solves their issues or helps them reach their goals if marketing is effective. If your competitor does not perform this well, you have a chance to draw in new customers first. New businesses should conduct deep consumer research, understand their target audience, and develop a strong customer acquisition strategy that reflects their customer perfectly. Choose marketing channels, methods, and techniques to reach prospective customers, attract their eye, and provide the information they need to solidify their purchase.
2) Digital Advertising Is Challenging
Digital advertising has become more and more popular over the last few years. Many businesses desire a substantial online presence, social media followings, and attention-grabbing advertising on search engines, video streams, or websites. However, it is time-consuming, expensive, and often ineffective to draw in new customers unless you already have a prominent brand voice or go viral quickly.
Most small businesses’ voices drown in specialized social media algorithms or cannot afford the top digital advertising means. Even if they could obtain these slices, it is difficult to reach targeted audiences, answer customer questions quickly, and appeal to individual needs. It is easy for consumers to search your competitors and choose their products simply based on the available information, number of followers, or number of consumer reviews. Accordingly, it is worth your investment, time, and energy to seek other customer acquisition techniques.
In fact, other methods could work better in contrast to the mass digital advertising spree. Consumers may be more apt to pay attention if your marketing means have a human voice, genuine connection, and valuable embellishments. Face-to-face marketing techniques may be the single-best way to accomplish these objectives. Demonstrations, events, and promotions can reach your target customers directly. Likewise, consumers will interact in-person with a sales professional, receiving valuable insights into your products, brand, and future customer experience.
3) Customer Acquisition Costs Are At an All-Time High
Businesses in 2022 report higher customer acquisition costs (CAC) than in previous years. In some cases, the CAC is higher than the customer lifetime value (CLV), presenting a real issue for companies. They seek to lower their CAC or balance the CAC: CLV ratio to a more reasonable value.
Start-ups do not have the capital, resources, or personnel to take on these high ratios, so they should strive to achieve an optimal number quickly. CAC should reflect a high return on investment (number of new customers) for their marketing costs. CLV may be estimated on competitor numbers.
New businesses should look for the most effective customer acquisition techniques to achieve CAC. Traditional and digital marketing methods may be expensive. Furthermore, while in-person sales and face-to-face marketing are typically successful, it may take a significant amount of infrastructure to get started. Fortunately, start-ups can use professional marketing agencies. These firms can create a strong customer acquisition strategy and develop advanced, targeted marketing methods. At Smart Circle, we take the best customer acquisition technique, face-to-face marketing, and pair it with a strong, nationwide network. In-person connections increase marketing success and secure high numbers of new customers, offering higher CAC.
4) Customers Want an Immersive Customer Experience
Customers want an excellent price point, high-quality products, and an outstanding customer experience. For 2023 start-ups, this means developing a strong and consistent brand, adhering to standards, providing customers with transparency, and delivering top-tier customer service. It also means creating an environment where customers feel heard, respected, and valued.
Most companies build a customer experience and brand relationships over time, yet new businesses may want to get a head start on the process going in the new year. Their chosen customer acquisition techniques and the content will display how they will treat their future customers. While websites and social media may be one way to bolster customer retention, face-to-face marketing wins the ultimate prize for customer acquisition here. Sales professionals can display brand voice flawlessly, throw events or promotions that delight prospects, provide transparent information about products through demonstrations or explanations, and treat prospective customers as they would handle loyal customers.
Start Up in the Right Way with Smart Circle
Are you looking for a strong marketing strategy, robust delivery networks and channels, tailored campaigns, and the best customer acquisition techniques? As a start-up in 2022 or 2023, these will be the most critical aspects of a successful business foundation. Contact Smart Circle today to learn how we can assist you!