The businessmen are always concerned about obtaining the highest number of customers and, as a result, the highest amount of sales and profits. Therefore, marketing and ensuring its effectiveness play a key role in the success of businesses. Here we want to take a look at two of the most popular marketing strategies and their effectiveness and performance: customer acquisition and performance marketing.

customer acquisition

The main goal of the customer acquisition strategy is to attract new customers. Customer acquisition is a major challenge for many marketers because if marketers do not attract net new customers, it is almost impossible for the company to meet its growth goals.

To attract customers, several actions can be taken, and here we mention some of the most important ones:

• Offer new customers a special offer or discount code
• Ask old customers to introduce you to their friends and acquaintances
• Record the location of your store in online maps
• Make the shopping process easy for online customers
• Take advantage of customer comments (usually seeing other people’s positive comments about different businesses builds trust)
• Be active in social networks
• Update your website (follow the principles of SEO, update content, use internal and external linking, etc.)
• Publish content that the customer needs
• State the value proposition clearly
• Optimize your service
• Attend events or hold an event
• Personalize your offers for each customer (For example, offering a new offer or discount on the occasion of a birthday or the beginning of the new year)
• Attract customers by observing competitors (use competitors’ weaknesses and strengths to attract customers)

strengths and weaknesses of customer acquisition:

• Not always cost-efficient
• Unpredictable – action is not guaranteed
• Difficulty to scale without the right marketing partner

Performance Marketing

In performance marketing (sometimes referred to as affiliate marketing), payment is made for a click, a touch, a conversion, etc. over a specific period. In this type of marketing, it is possible to measure quickly, cleanly, and simply.

Types of performance marketing:

Cost Per Click (CPC): Advertisers pay based on the number of times their ad is clicked

Cost Per Impression (CPM): Advertisers pay per thousand views

Cost Per Sale (CPS): Advertisers only pay for the sales that result from that ad

Cost Per Lead (CPL): In CPL the advertiser pays when someone signs up for something (such as an email newsletter or webinar). CPL generates leads, so you can connect with customers and increase sales.

Cost Per Acquisition (CPA): Cost per acquisition is similar to CPL and CPS but more general. With this structure, advertisers pay when consumers take a specific action (which could include making a sale, sharing contact information, visiting your blog, etc.).

The importance of performance marketing

Performance marketing allows advertisers to measure results and determine return on investment, leading to more efficient use of advertising budgets. Advertisers can target specific audiences and track the success of campaigns, enabling precise targeting and better use of resources. This leads to lower advertising costs, higher return on investment (ROI), and improved marketing effectiveness. It also shifts the focus from ad display to user actions, leading to more meaningful and relevant ad experiences for consumers.

strengths and weaknesses of Performance Marketing

• Dependent on vendors who may not always deliver against expectation.
• Not demand-typically focused on existing customers
• Question of whether or not it’s incremental or mostly subsidized.

Which approach is better?

To succeed in business, you need to know which method is more suitable for your business and whether you should use a combination of various methods of advertising and attracting customers or not. To achieve your business goal and use your advertising budget correctly and efficiently, it is better to get help from prominent experts in the field of advertising and technology. United Techies Company with years of brilliant experience in the field of technology and digital marketing can be one of the best options.

References:

https://lancersara.com/what-is-performance-marketing/

https://www.yektanet.com/blog/15268/%D8%AC%D8%B0%D8%A8-%D9%85%D8%B4%D8%AA%D8%B1%DB%8C/

https://zetaglobal.com/resource-center/articles/customer-acquisition-versus-performance-marketing/