Everything You Need To Know About A Customer Acquisition Funnel


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The cost of acquiring new customers has increased by 60% over the last few years. Marketing is more costly, customers are less trustworthy than modern brands, and it can sometimes make you feel like you should quit. As tempting as it might be, don’t give in.

Instead, be smart and look for ways to improve and build your customer acquisition strategy. You must also optimize your customer acquisition process through industry trends to achieve the desired results.

What is the Customer Acquisition Funnel and How Does It Work?

It’s the framework that allows you to track and monitor your efforts to retain and attract customers. It provides guidance and insight on how to improve your results.

A Customer Acquisition Strategy is Critical

It may seem that customer acquisition is easy and doesn’t require much effort. This is not true.

With little effort and cost, creating a funnel can help you attract, retain, convert, and engage customers. This will help you identify your target audience, and which customer acquisition channel is best for your company.

You can learn more about your customers’ journey by visualizing it or mapping it. To find out what customers like and dislike about the process, you can poll existing and new customers. This can help reduce customer churn and increase your lead generation efforts.

This information will help you to understand their willingness to buy the product or service you offer. There are several stages to any purchasing process.

These stages include:

  • Recognizing your wants and needs
  • Looking for information and resources?
  • Comparing and evaluating options
  • Buy
  • After purchasing an item, evaluate it

This means that your leads will go through a process where they are unsure of what they need or want, but also where to find it.

This leads to the research stage, where your target audience decides if they trust you enough to buy from you. The customer must then consider the price of the item before purchasing.

You can avoid losing prospects through the crucial stages of customer acquisition if you have a strong process. This is also true when leads are transferred from your marketing team to sales, customer service, and so on. You are less likely to miscommunicate or lose data with full-funnel marketing.

It is now time to improve your customer acquisition efforts. The best customer acquisition strategies can help ensure that your customers get what they need and have a pleasant experience.

The Essential Elements of a Successful Customer Acquisition Strategy

Each brand should decide for itself how to create a customer acquisition strategy. This is true, but there are core elements that you need to keep in mind.

Integrating your Business Goals and Strategy

It is important to define success for yourself. Your target audience is key to success in your business. It is also important to establish the metrics that will be used to measure success. This is essential to help you achieve your goal of acquiring customers.

You should consider the historical impact of your marketing activities on business growth when creating a campaign. Also, look at industry benchmarks to help you determine what is the best approach.

It is important to consider customer churn. Your customer acquisition campaign must be able to compensate for any churn with existing or new customers. You should get new customers to make up for the ones you lost. Growth is almost impossible if this is not the case. This can be alleviated by having a solid lead generation strategy and customer retention strategy. This helps you set realistic and attainable goals for acquiring customers.

Find the best acquisition channels for your business

There are many ways to acquire customers. These include traditional advertising, digital advertising, and SEO optimization.

You can only find out which channels are most valuable and have the most customers by testing them all. It is also important to measure customer acquisition costs (CAC), relative performances, and other crucial factors.

Understanding Customer Acquisition Costs

CAC (customer acquisition costs) is calculated by taking the amount spent to acquire a customer or user and then dividing it by how many clients you have.

For example, let’s say you invest $1,000 in social marketing. It would cost $10 to acquire 100 customers if it led to 100 conversions.

There is no one set cost for customer acquisition that works across all industries. This is true. However, it is possible to establish a baseline by calculating the customer acquisition cost and then comparing it with the customer’s LTV or customer lifetime value.

Experts believe that 1:3 is the best ratio of CAC to LTV. This means that if the customer’s lifetime value is $30, then a reasonable customer acquisition price is $10. The lower your customer acquisition costs, the greater your profit margins.

Once you have established a solid foundation for generating new customers, it is time to explore the components of customer acquisition and how to develop evergreen customer acquisition strategies. These tools will allow you to generate interest from new customers.

Customer Acquisition Strategies: Building Your Funnel

The funnel for customer acquisition is similar to a traditional funnel. It starts wide and then narrows down as you go. It can be viewed as if you are trying to attract as many people as possible. Then, you will narrow down the leads to make sure you get quality leads.

The stages of a successful customer acquisition strategy start at the top and move down.


Your brand is first known to new audiences and prospects. The first step in any customer or user acquisition is awareness. This can be done by independent research that is conducted by your marketing and sales team.


Your brand then takes steps to differentiate itself or educate customers about your offerings. This stage is crucial for attracting customers’ emotions. A clever or resonant message is the best way to do this. Customer stories are another option. Your customer acquisition costs will drop if prospects find your offer more appealing.

Engaging existing customers in the acquisition model can help increase customer lifetime value LTV. This is because they feel like part of the team.

Take into account

Prospects will visit your site, download the content and sign up for a free trial. The prospect will feel more comfortable and familiar with your brand. It’s your job as a customer acquisition professional to make what you have appealing. Attracting prospects is the best way to convert interested customers into paying customers.


Prospects (at this stage, your target audience), move down the sales funnel and get closer to making a purchase decision. This usually involves adding products to their shopping carts and watching product demonstrations. This is a step closer to selling to customers.


You have to engage your customers as a result of their activity. It’s an important part of customer acquisition. Prospects will then weigh the benefits and costs of making a purchase. Prospects may also look at similar brands and products, or choose to do nothing.


Prospects and leads become customers when they make a purchase. You can reward loyal customers with upsells, cross-sells, and rewards after the sale.

Tips and tricks to create a customer acquisition strategy and funnel

You must have a strategy for acquiring new customers before you can optimize your sales funnel. There are many options available today. Paid advertising, content, and social media platforms are important but don’t forget to include direct mail and market research. These will help you improve your conversion funnel. You can spend your marketing dollars wisely by setting the right priorities.

Ask the right questions

The following questions should be asked during market research and customer acquisition planning:

  • Who are your ideal customers or target persona?
  • What are your business goals (i.e. revenue growth)?
  • Conversions, leads, and brand awareness are all important. )?
  • Which channels will you use to promote demand generation?
  • How will you measure campaign success?

Planning will be more effective when you include multiple teams, such as sales, leadership, and product development.

A key part of any customer acquisition strategy is making sure your website can be found easily online. Make sure to update your content with new information and links and then republish it. This can improve your site’s ranking and increase traffic. If you provide useful quality content, and you post it frequently, visitors will convert more easily and you’ll find it easier to retain customers.

Find out which content is receiving the most clicks, and why. Are there industry-specific questions, such as location- or feature-specific queries, that direct people to your page or website?

Prioritize Advertising and Social Engagement

Social advertising is an important part of customer acquisition strategies. This offers a unique opportunity at a low price. This can be a great way to engage prospects, create a community around your brand and increase brand awareness.

Adverts and campaigns are often well-received by social media users. Marketers can also target their audience and track results with the smallest details.

Utilize Multiple Channels

Multiple channels are a great way to improve your customer acquisition strategy. It ensures that your customer acquisition strategy is not negatively affected by one channel or ad. It provides superior results for all campaigns.

Spend money on your creative assets

Your creative assets will make your customer acquisition strategies as effective as theirs. Even if you plan carefully, this is true. Not only are images and videos not enough to cut through the clutter, but they also need to be used in conjunction with each other. They can also drain your resources quickly. This is especially true if images don’t reflect well on your brand.

If you want to increase customer acquisition, it has never been more important to invest in high-quality creativity than it is now.

Make Video Useful

Over 88% of businesses use video marketing to inform, entertain, and attract customers and prospects. Videos can be used to tell stories about customers and brands. Videos can also be used to educate the viewers by showing your products in action and how they are used.

Well-crafted videos can trigger emotions and increase their virality. Videos should be a key part of your customer acquisition strategy.

Optimize your Ads

Social advertising is a competitive field that requires you to fine-tune your creativity and use quantitative creative testing to improve it. You will need to test the effectiveness of different elements in your concepts.

These ads can have some elements that you can alter, such as:

  • Video length
  • Copy of the advertisement
  • Images
  • CTAs
  • Colors

This is an economical way to create variations on your ads that are successful. This should be about 80% of your advertising budget. The remaining 20% can be used to develop new concepts.

Make Paid Ads Work for You

Paid advertising is a growing business. Search ads and paid social media are both powerful traffic drivers. These are also affordable way to get new customers. You can decide if you want to pay per impression, or per click based on your marketing budget and priorities.

Partner with other brands to build partnerships

You can also achieve success through co-branding. By combining your resources with other companies and leveraging each other’s influence, you can fill your sales funnel. It is possible to partner with other brands by making customer acquisition a team effort.

Initiate a Referral Program

A referral program is another way to increase your prospects. Ask current customers to recommend friends and family. When they refer friends and family members, you can offer them perks such as discounts. This tactic is quite affordable, believe it or not.

Be transparent and helpful

Your brand messaging and product information should be easy to read. Calls to action should be clear and provide an obvious benefit. If possible, include testimonials, product ratings, and media mentions.

Focus on Flexibility & Sustainability

Your resources should be used to implement and change your customer acquisition campaigns and strategies. To ensure that your inbound marketing efforts are supported, you should also create a digital strategy. Flexibility and willingness to adapt to changing marketing conditions and customer expectations are essential.

Tips for Maximizing Your Acquisition Funnel

It doesn’t matter if you have a customer acquisition plan in place or if leads are coming into your funnel. This does not mean that your work is finished. To keep improving your funnel, you must optimize it. No matter how successful or small your business is, optimizing your funnel efforts is essential.

You will eventually encounter blockages in the sales funnel that you have created. Your conversion rates can drop at this point, often quite significantly. You may have a scaling problem. For example, you cannot increase the number of people moving from one part of the funnel to another because your marketing or sales techniques are exhausted.

You will find another way to get around the blockage point if you can. Blockage points happen all the time. It is up to you to find them and fix them.

How to identify a sales funnel blockage point

Asking this question is one of the easiest ways to determine if there is a blockage.

Are you unable to increase your sales five times as fast?

Some of the most popular answers are:

  • There are not enough leads to fill your funnel.
  • There are many website visitors but not enough users converting to registered users.
  • Although signing up customers is going well after one sale, there isn’t enough growth in the account.
  • It is impossible to meet with the key decision-makers.
  • Many people sign up for your freemium products, but not enough to become a paid users.

It doesn’t matter what the cause is, you can figure out how to fix it.

Common Blockage Points

It’s now time to find out about common blockages that can occur.

The market or product fit

Startups that are just entering the market may have problems with their acquisition funnels. This is because they don’t have the right market or product match. This is where you need to determine if it’s the problem. If you don’t know what the problem is, your management team could waste time and money on sales and marketing that don’t work.

This is the best way to deal with it. Focus all your energy and attention on the market or product match. This will allow you to focus your attention on solving the customer’s problem and limit the amount of marketing and sales you spend.

It’s crucial to save your money and pay for product development to make a product that meets the market needs.

Beyond the product or market fit

Another common problem is the belief that your customers will do something you haven’t motivated them to do.

You hope people will visit your site regularly. You didn’t take the necessary steps to make sure they knew about your site. You haven’t given them a reason to visit your site.

Review your website. It may turn out to be sales-oriented, and not provide any value for anyone who might be interested in purchasing what you have to offer.

You should also be careful if prospects fill out an online registration form with their contact information, but you haven’t given assurance that they won’t spam you with new registrars.

This is often because companies create customer acquisition strategies based on their view of the world rather than listening to customers’ concerns and understanding their buying process.

How to Solve Common Blockage Points in Your Acquisition funnel

Once you have identified the blockages that are preventing customer acquisition, it is time to work on them. It is possible to get into the heads of customers and understand their concerns at various stages in your sales process.

The following are some of the most frequent customer concerns:

  • It can be difficult and time-consuming to switch.
  • They don’t have the time
  • They don’t like to receive spam emails
  • They have more to think about
  • They have a product that will take care of your offer.

Each of these concerns can cause friction in your sales process. These concerns can be mapped and written down to give you the information you need for the next step. This includes learning about other things that might motivate them to act or take the next step.

Consider the concerns as friction. These are the driving forces that you can use to overcome friction.

Finding the right motivation source to help prospects overcome their concerns is key. Your motivation must be strong enough to motivate clients to keep moving forward with your sales process. It is important to bring in the best creative thinkers to help you find solutions.

Customers don’t like being sold and want to control the buying process. This means that you cannot use outdated methods to get them through your sales funnel. To achieve the results that you desire, you must think creatively and beyond the box.

Issue: How to get new traffic to your website

Many businesses find that the bottom of their funnel is a common blockage: getting found online. You won’t be able to even start a conversation with potential customers if you don’t get started.

Many entrepreneurs believe that people will find your website automatically if they build it. Most buyers feel overwhelmed by the constant information overload that comes with today’s 24/7 lifestyle. Their time and attention is the most valuable commodity they possess (that you can get). It is not possible to get their attention if your website is just built and hopes it will go viral.

This is the perfect time to learn about your client’s motivations and concerns.

Potential Concerns

You don’t want to waste time on something irrelevant or not valuable right away.

  • Do not want to be sold to.
  • Your site won’t show up on Google’s first page.
  • Search is the most common way to find information.
  • Do not worry if you haven’t found the best product or service.
  • Be wary of the best deal.

Common Motives

There are certain concerns that potential buyers may have. However, if they are looking for something, there is also motivation. These are some sources of motivation:

  • They are looking for a solution to a problem.
  • A friend has recommended a product and they would like to try it.
  • If someone is given something for free and it is worth their time, they will likely want it.
  • They are interested in learning more about something even if it’s not related to your product.
  • They believe that the review site, consulting firm, or individual is an expert on the product and want to hear their opinions about it.
  • They enjoy sites that inform and entertain them about topics they are passionate about.

You can get people to pay more attention to you if you give them something valuable.

Issue: How to get customers to sign-up or register

A common problem with today’s Saas Sales channels, or conversion funnels is when you want visitors to sign up or register for something.

Start by asking them about their motivations and concerns.

Potential Concerns

Some potential problems in this area include:

  • Because they fear spam, customers don’t want their email addresses to be shared.
  • Many people distrust vendors and businesses with their email.
  • It is important to remember that the information you provide is private and can take time to read emails.
  • Customers should take the time to try a product.

Common Motives

  • They are looking for a solution to a problem.
  • There is enough praise for the product on the site to prove that it is well worth your time.
  • They are passionate about finding the best products in the market.
  • They want to be admired by others through their purchases.
  • They are passionate about a subject and eager to learn more.

Marketers who are good at communicating the time it takes to reach the “wow!” points often discuss this. It is important to talk about how long it takes for customers to reach the “wow!” moment.

This is the traditional way to get people to register or sign up. Once they do, they will experience some gratification and the “wow!” moment.

This is not a good strategy. It is important to make sure they have the “wow!” moment before you ask them anything.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.