What Is Customer Acquisition?

Key takeaways

Customer acquisition is the process of converting a potential customer into a paying customer, or a lead into a sale.

• The customer acquisition cycle typically involves developing leads, building relationships, nurturing them through engagement, and converting them into customers.

• The costs associated with moving a customer through the customer acquisition process are referred to as the customer acquisition cost and include money spent at all stages of the acquisition funnel.

• You can implement a customer acquisition strategy by leveraging various marketing channels, including advertising, content marketing, and social media.

Discover more about customer acquisition, including what it is, associated costs, and marketing channels you might include in your customer acquisition strategy. If you’re ready to launch a career in digital marketing, consider enrolling in the Google Digital Marketing & E-commerce Professional Certificate program. You’ll have the opportunity to gain skills in data storytelling, email marketing, online advertising, campaign management, and more. 

What is customer acquisition?

Customer acquisition is the strategy you would use to gain new customers. The process of acquiring a customer, sometimes called the acquisition funnel, begins by creating brand awareness and generating interest in your product. Customers then begin to consider making a purchase, which becomes the intent to purchase. Finally, customers make a purchase and complete the process.

What are the three parts of the customer acquisition cycle?

To review, the process of acquiring customers involves:

1. Attracting potential customers (or leads)

2. Nurturing leads through relationship-building and engagement

3. Converting leads into customers

What is customer acquisition cost?

Customer acquisition cost (CAC) represents the average expense of moving a customer through the acquisition funnel. CAC includes the money spent at each stage of the acquisition funnel: awareness, interest, consideration, intention, and purchase. It involves marketing, property, equipment, and any other costs associated with the final purchase.

It’s important to compare the CAC to customer lifetime value (CLV), the total revenue a customer will generate in their lifetime. You’ll generally want to aim for a profitable 3:1 ratio CLV to CAC or higher to ensure your marketing decisions align with business goals and strategies. Understanding these metrics will help you make more cost-effective marketing decisions.

Customer acquisition strategy: Marketing channels 

When you develop your customer acquisition strategy, consider these marketing channels to reach your intended audience:

• Advertising: Buy advertising space across search engine results, social media, and video advertising. Many advertising channels offer tools to tailor your ads to your potential customers to help you narrow your intended audience.

• Content marketing: Leverage your company’s blog and website to publish high-quality content, or offer seminars and downloadable content that your audience will find useful, interesting, and engaging. Content marketing can draw qualified leads organically while helping you position yourself as a thought leader in your industry.

• Social media: Educate your leads about your products through social media platforms to gain valuable insights regarding audience engagement. This type of marketing channel also enables direct interactions with potential customers in a public forum.

Read more: Search Engine Marketing: SEM Basics for Beginners

Attracting and converting new customers relies on effective digital engagement strategies. If you're interested in strengthening your skills in this area, consider enrolling in Google's Digital Customer Engagement Specialization. In weeks, you could learn to build customer personas, run social media and email campaigns, optimize e-commerce experiences, and design loyalty programs. By the end, you’ll earn a shareable certificate for your resume.

Related Terms

• Pay-per-click

• Sales pipeline

• Conversion rate

• Marketing channel

• Customer lifetime value

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