What does it take to succeed in business today? This question will no doubt produce a variety of answers depending on who you ask. Narrow that down to one particular skill and you still might hear a few different answers. With that said, everything comes down to one thing. The one thing that will make or break any business. I believe that to be, customer acquisition.
Customer Acquisition
Customer acquisition is the process of gaining new customers. This involves engaging potential clients by offering products and/or services that solve any number of problems. Any successful business has invested time and money into client acquisition because it is the lifeblood of any business. The cost is referred to as customer acquisition cost, or CAC. This can become become quite costly but ideally becomes negligible as you see a return on your investment (ROI) over time.
To grow a solid return on investment, it’s important to also consider customer retention. Customer retention is generally far cheaper than customer acquisition, so it’s very important to manage your current clients. Keep them happy and you’ll experience greater ROI.
Why Customer Acquisition is Number One
You may be asking yourself, why is customer acquisition number one? To put it simply, if there are no customers, there is no business. All successful businesses do what it takes to build and retain their client list because without clients, everyone starves.
Let’s take for example two different people who work at a major international design firm. Sean is a high level designer with many years of experience and Heather is a salesperson who manages many of the companies largest clients. If Sean were to suddenly quit, I’m sure the company would be bummed and see a slight setback. If Heather were to suddenly quit and take her clients with her, the company would experience a major disruption. The point here is this: While both Sean and Heather are excellent at what they do, the one who controls the clients controls the business. Having master skill in and of itself does not guarantee success, customer acquisition is key.
Attract, Satisfy, and Retain
Attract, satisfy, and retain customers; it’s the winning combination of any successful business.
Attract: First, you need to attract potential customers with a product/service of high value. Do any necessary research to get to the core wants and needs of your customer base.
Satisfy: Once you’ve discovered your customer’s wants and needs, create a product/service that satisfies those needs. Again, this should be a product/service of massive value. The more value your customers perceive, the more successful your business will become.
Retain: With your customers satisfied and impressed with your product or service, repeat business is sure to come. Keep in touch and keep providing them with value as they they will in turn provide you with the same ($).
There are many things to consider when starting/running your own business. If you focus on customer acquisition with your high value product and/or service, you’re sure to be successful.
Started your own business or plan to in the future? Feel free to share your thoughts below!
