Go Risk-free On Your User Acquisition Strategies
Updated: Apr 3, 2020
The following is an article “Go Risk-free On Your User Acquisition Strategies” by Marc Primo.
Before your startup launches an app or game, you’ll need to look for users. Investments for your public relations or inbound marketing should always pay off in the form of lead generation. This requires knowing what you really want to accomplish so that you won’t have to deal with the risk of losing conversions due to poor marketing.
Generating leads makes businesses work and while some entrepreneurs find it easy to sell a good product, the challenge lies in how to retain customers and their loyalty. What you might want to ask yourself first is: can you handle more customers? If you can, do you have the proper systems to handle the influx?
If you’re confident enough to take on more customers, then here are a few tips that can help you dodge risks while implementing your user acquisition strategies:
Study your product. Chances are you’ve already spent years developing your product and know everything about it. But when you are formulating strategies for user acquisition, you’ll have to back track and ask yourself if your product is really ready for mass consumption. Consider customer experience a priority and make sure that everything works to avoid customer complaints and low ratings. Always have proper customer support in place with staff members who know how to deal with customers and troubleshoot problems with your product.
Be prepared. You can’t always anticipate what problems may arise with your user acquisition strategies, but having a good plan helps. The process is far from being linear so you’ll need to consider having effective metrics, detailed accounting, realistic timelines, and ample manpower as you onboard customers. This is when knowing what you want to achieve really matters as your ability to adjust effectively to changes makes your strategies more dynamic and productive. Design a plan that can address foreseeable problems in the future and share it with your staff so they’ll know what to do when it happens.
Do the math. Draft a cost estimate for your marketing strategies to cover necessary expenses according to your allotted budget. One good formula you could use is to take the sum of your sales and marketing costs in a given period and divide it by the total number of customers acquired during said period. Usually, your budget should cover expenses for advertising, promotion, and public relations efforts so determine the right amount to allot for your marketing strategies. This could equal as low as 1% of sales to as much as 30%, depending on the size of your operations, annual sales, and your competition’s efforts. Flat rates for your marketing budget may be enough if you have a small business, but use a long-range marketing plan for strategies with five to 10-year timelines.
Pick the right channels. Choosing the right channels to invest in for user acquisition can be pretty daunting, especially if you’re launching a startup for the first time. Start with efficient marketing research to determine your main target audience. This will simplify your choices for which channels you can make placements on for promotions. Among the better ones you can consider today are ad agencies, social media, owned media channels, search engine placements, and cross promotions.
Establish KPIs. KPIs, or key performance indicators, measure how well your user acquisition strategies are performing. These KPIs should always be aligned with your main goals so you can make the necessary adjustments when you go over the numbers. Use apps for analytics that can monitor your data such as Google Keyword Planner for search engine optimization, Mailchimp for email marketing, and Unbounce for conversion rate optimization. Since your KPIs are directly aligned to these app’s trackers, you can regularly check where you are in achieving your goals more effectively.