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

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Google Digital Marketing & E-commerce

Get on the fast track to a career in digital marketing. In this certificate program, you’ll learn in-demand skills, and get AI training from Google experts. Learn at your own pace, no degree or experience required.

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907,966 already enrolled

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Average time: 6 month(s)

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Skills you'll build:

Search Engine Optimization (SEO), E-Commerce, Email Marketing, display advertising, Marketing, Customer Relationship Management (CRM), Portfolio preparation, Building customer loyalty, E-commerce store optimization, Job preparedness, Social Media Branding, Social Media Analytics, Social Listening, Customer Engagement, Social Media Bidding, Google, Search Engine Marketing, Customer Awareness, Website Structure, Email marketing analytics, Email Writing, Contact management, Email marketing strategy, Email list segmentation, E-Commerce Strategy, Seasonality, E-commerce platforms, Fulfillment and delivery, Customer loyalty, Customer Outreach, Marketing Analytics, Media planning and strategies, Spreadsheet management, Presenting to stakeholders, Digital marketing KPIs

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.

Related Terms

• Pay-per-click

• Sales pipeline

• Conversion rate

• Marketing channel

• Customer lifetime value

Learn more about customer acquisition and digital marketing on Coursera 

If you’re ready to learn more about customer acquisition and digital marketing, consider completing the Google Digital Marketing & E-commerce Professional Certificate on Coursera. In this seven-course series, you’ll learn how to attract and engage potential customers in different marketing channels.

professional certificate

Google Digital Marketing & E-commerce

Get on the fast track to a career in digital marketing. In this certificate program, you’ll learn in-demand skills, and get AI training from Google experts. Learn at your own pace, no degree or experience required.

4.8

(31,737 ratings)

907,966 already enrolled

Beginner level

Learn More

Average time: 6 month(s)

Learn at your own pace

Skills you'll build:

Search Engine Optimization (SEO), E-Commerce, Email Marketing, display advertising, Marketing, Customer Relationship Management (CRM), Portfolio preparation, Building customer loyalty, E-commerce store optimization, Job preparedness, Social Media Branding, Social Media Analytics, Social Listening, Customer Engagement, Social Media Bidding, Google, Search Engine Marketing, Customer Awareness, Website Structure, Email marketing analytics, Email Writing, Contact management, Email marketing strategy, Email list segmentation, E-Commerce Strategy, Seasonality, E-commerce platforms, Fulfillment and delivery, Customer loyalty, Customer Outreach, Marketing Analytics, Media planning and strategies, Spreadsheet management, Presenting to stakeholders, Digital marketing KPIs