With all the different things one has to know about running a business and gaining customers, it can get pretty overwhelming. But today, we are here to help you check certain terminologies off your list of things to learn about. User acquisition is one of the most important things you have to do with your business, yet this terminology is not very well known and understood by the people in the industry. This walkthrough will help you to understand all the most vital things to know about what is user acquisition, its importance, and its process.
What is User Acquisition?
User acquisition is exactly what the name implies - acquisition of users. Now, being immersed in the business world, you may have already heard of “customer acquisition”, and you might be thinking that it’s the same thing- which can be true if we are only talking about the action of acquiring. However, these two are different terminologies, and knowing their differences might help you understand how to do them equally well. While this article will focus more on what is user acquisition, we will be talking bits about customer acquisition to properly establish the differences between the two terms.
Let’s look at an example. Suppose you have created a mobile app. Now, of course, you’d be using different marketing strategies to get the name of your application out into the world and ignite enough curiosity for people to download and use the application. Depending on your application type, the people you attract sign up to use the application or just use it directly. This is what user acquisition is. Then, after a while, when they’ve exhausted all the free resources that come along with the application, it asks them to purchase something within the app - for them to keep using it or to upgrade the experience. This purchase is what customer acquisition is.
Image taken from Strikingly user’s website.
To put it simply, user acquisition refers to acquiring new users - subscribers, players, download users, etc. While customer acquisition happens when these new users are converted into paying users - that is, they have upgraded to a premium subscription, bought an in-app purchase, placing an order, etc. You must understand that user acquisition is the bridge for you to succeed with customer acquisition. Because basically, attracting people by helping them get to know your product or brand and pulling them in to use it answers the question “how does user acquisition work?” It is about getting the word out about your product or business and preying on your target audience's curiosity and needs. And much like marketing in general, there are numerous ways to get this done. But before we get into how user acquisition works, let’s first dive deeper into why it is very important for your business.
Importance of User Acquisition
Many businesses focus on customer acquisition immediately, without them being aware that it is what they’re doing. As mentioned earlier, these two are so intertwined and connected, and not everyone is completely conscious about what they are doing and what they should be doing. This leads to the importance of user acquisition being forgotten or completely ignored by some companies or businesses. Thus, we are here to remind you exactly what that is.
• It can be an indication of the effectiveness of your marketing strategies. By measuring just how many new users you have, you can decipher and determine which of your marketing strategies are actually giving you the results you want and need. The number of new users you acquire can clearly indicate how your strategies are faring in the market.
• It leads to customer acquisition. While user acquisition can play different roles in different kinds of companies, its main purpose is to bring people in for them to be converted into paying customers. So while it does not directly translate into revenue, it is what makes it possible for you to actually gain revenue in the long run.
• It helps you gain valuable information. User acquisition doesn’t directly give you the income you want. Still, it actually can work as a research activity since when you acquire new users, you also get their information. Information that you can use in coming up with strategies to use in the future or with ideas to improve the strategies you have in place at the moment.
Image taken from Strikingly user’s website
How Does User Acquisition Work?
You can acquire new users, which might eventually translate into new customers, either (or both) by using paid user acquisition or organic user acquisition. Both have proven to be effective in attracting new customers, so it all depends on your budget - both in terms of time and financial resources, which one is better for you to utilize. While you can choose one from either, you can also come up with a good combination of both that works best for your business. You see, user acquisition plays different roles for different businesses, and thus, it also works in different ways. Depending on your business, user acquisition can happen in the simplest of ways, or it can take a while before you actually succeed with it. The only constant thing is that you will need to look into and consider the following factors for your user acquisition strategies to work:
1. Target Audience. Like any other marketing strategies, the first thing that you should research and know about is your target audience. Doing customer research would let you know your potential users (and eventually customers). By knowing and understanding their preferences and what makes them excited, you arm yourself with the data you need to develop the best strategies to reach them and encourage them towards your business.
2. Platforms and Channels. With today’s technology, there are so many different channels and platforms that you can use for your business, especially with the user and customer acquisition. With social media alone, you already have so many choices on your plate. And that doesn’t even stop there because other platforms (email, television, radio, billboards, etc.) are also available at your fingertips. Be careful not to try and use all of them (or a majority of them) because it might lead to a colossal waste of time and resources. Take a look at your target audience and maximize the platforms that would work best for you.
Image taken from Strikingly user’s website
3. Your Business Strategies. While your user acquisition strategies can basically be what your marketing strategies consist of, there are still a lot of other aspects of your business that you have to look at. Having marketing or acquisition strategies that are not in sync with your other strategies or your business image or brand, in general, can negatively impact your business in the long run. Making sure they are in sync will help you to build a stronger case for both acquisition and retention of users and customers.
Now that you have an idea of what to consider as you develop different user acquisition strategies for your businesses, let us give you a headstart and some ideas.
• Social media marketing. As mentioned above, social media platforms comprise an ample space in the market. And so, one of the many strategies that you can go with is to use social media to your advantage. Make sure that you have a good online presence. Interconnect your different social media accounts. Add social media feeds to your website. Interact meaningfully with potential users and consistently increase your social media engagement.
• Influencer marketing. Influencers from all over the globe are taking the world by storm. Big or small, influencers are making a difference for so many businesses. User acquisition is made easier with this strategy because this is a direct people-to-people strategy. That is, influencers have an image of being a friend to users and customers - and what are friends for but to recommend the best things to try out and/or purchase.
• Paid advertisements. Of course, advertisements - whether online or offline advertisements still play a big role in the marketing world. With so many businesses popping up from everywhere, paid advertising usually gives certain businesses’ user acquisition and customer acquisition strategies the edge they need to pull people in. While this is costly, it saves time and effort for most businesses using it.
• Marketing with a Website. Last but not least on our list is to create your own website. Having your own website to house your business will heighten your chances of pulling users in. You don’t just increase your credibility and authenticity online. A website also gives you multiple opportunities for user acquisition because it can be home to many different features and tools your potential users and customers will enjoy.
Image taken from Strikingly
User acquisition can be very simple for certain people and businesses. Still, like any other business endeavor, it takes actual work, focus, and dedication to doing it good and right. As we already talked about above, this is a step that many businesses tend to ignore. However, after reading this article, we hope we have enlightened you on the importance of user acquisition. This walkthrough hopefully helped clear things up for you and gave you some ideas about what to do next.
So, might we suggest your next step be joining the Strikingly family and making your own website? Besides the advantages of having a website we’ve already mentioned, Strikingly has multiple features and tools that can help you bring all the user acquisition strategies into reality. So sign up now and let us continue your journey towards high user acquisition.