1. Build a customer profile
First, write down five characteristics, which, in your mind, define your ideal customer. Second, analyse and group your existing customers, breaking them down by value. Look at customers that bring in the most cash for the least effort, or those that are the most loyal, engaging or fun to serve. Identify any common characteristics or attributes. In doing so, you have defined a profile not just for your best existing customers, but your best prospects too. Third, consider how you acquired them. Again, patterns may emerge. For example, if your most valuable customers are 30-something females that you acquired via e-marketing, you have identified both a target market and a method of reaching them. Finally, compare your analysis from steps two and three with the original ‘ideal customer’ you defined earlier. If there are differences, you may need to re-evaluate your own perceptions about who your ideal customer is.
2. Plan, define a strategy
As ever, a little planning counts for a lot. Your time and resources are limited, so you need to focus your efforts on activities that return the greatest possible results. If you have defined who you want to target, you need a strategy for the how. How exactly are you going to reach your targets? Evaluate the methods at your disposal and define an action plan. It doesn’t have to be pages long, but it should be dynamic. Don’t be afraid to change things, ditching methods that fail, and focussing extra resource on ones that succeed. Such steps may seem obvious, but businesses often fail to think strategically about customer acquisition - a failing that only serves to slow down the search for new customers.
3. Word-of-mouth
Few other methods of promotion come close to the power of a personal recommendation from a family member, friend or colleague. In many ways word-of-mouth is an organic process; providing a quality product or service and an excellent customer experience will invariably get people talking and lead new customers to your door. But you can actively pursue word-of-mouth. For example, you could collect testimonials from satisfied customers and publish them on your website, or get people talking through email or flyer campaigns that provide an incentive for spreading the word. The Internet is making it easier than ever for satisfied customers to share their experiences, increasing your scope for capitalising on word-of-mouth and viral marketing approaches. The challenge is to figure out clever ways to get people talking about you - online or off. Foster strong relationships with customers as much as possible, because close customers are customers that care about your success. If they get the chance to promote your business on your behalf, they will.
4. On and off
More and more, businesses are adopting online methods of finding customers, whether this be through their website, online advertising, email or new media communications. This is all very well, but don’t forget the value of offline channels too, such as the direct mail letter, flyers, brochure packs, poster campaigns, or even marketing messages on the side of a bus or a cup of coffee. If anything, the more firms fight to gain exposure online, the more the offline world becomes a clearer playing field. Both online and offline methods of finding customers have their unique value, and are complimentary to each other. Think about how you can capitalise on both worlds side-by-side.
5. Something for nothing
Whether you sell products or services (at high or low value per unit) there may be scope for offering a little something to potential customers for free. This may serve as the taster reluctant consumers need to engage with your brand. But be careful, giving away too much is an obvious drain on your time and resources, so plan such promotions carefully. And ‘freebies’ are not always appropriate, so think about whether the approach suits your brand. But remember, there are many ways to offer something for nothing. Introductory discounts, special offers such as voucher coupons, recommendation schemes, buy one get one free, samplers, competitions or prize draws. If you are 100% confident in your product or service, you could also offer a money back guarantee for the first sale.
6. Keep your eye on new technologies
The internet wasn’t the first new technology that allowed businesses to reach out to new customers in new ways, and it certainly won’t be the last. The next big thing, so they say, is mobile and pervasive (location-based) computing. Mobile devices that are aware of user location and capable of communicating with their surroundings may one day promote your business and its products or services. Plug that potential into the existing online world, and you have a next generation platform to talk to potential new customers. Ok, it may be unrealistic to think that you can become a pioneer in cutting-edge technologies. But at the very least, having an awareness of such trends could mean that you can capitalise on them before the competition, winning new customers in the process.
7. Monitor success
As you acquire new customers it’s important to monitor your success. If you are not doing so well it may be time to change your direction. If you are succeeding, identify which approaches are working and pump more resource into your winning formula. Either way, monitoring your success at acquiring new customers gives you the intelligence you need to move forward effectively.