Search Engine Marketing and The Cost of New Customer Acquisition

Customer_Acquisition-300pxThe goal for search engine marketing is to rank website for keywords chosen. We all know that it involves tons of work and effort from SEO the website itself to pick the right keywords, all the way to build network of linkings in order to push the rankings.

Although we put a lot of effort, there will still be no guarantee of ranking even if we do attain rankings for certain keywords today. What is even worse, the cost of acquiring new customers, by keyword targeting, is rising as more and more SEO marketers compete for the same group of keywords.

According to a Harvard Study a few years back, it can cost five times as much to acquire a new customer as it does to keep a current customer. Isn’t it wise to lower the cost of new customer acquisition, but how?

The goal is to increase the conversion rate, i.e. ROI. If you did a lot of PPC Adwords or similar, you must be familiar with conversion. And you know that if you want to run a successful Adwords campaign, you got to setup groups of ads to target different groups of visitors using different groups of keywords. In marketing world, it is called segmentation. The more specificly and accuately you segment your audiences, the higher conversion your PPC ads campaign will get.

In organic search marketing world, segmentation is also the key. Segmentation in another word is “knowing the customer”. Did you really know your customers? How would you segment your customers?

Most of the time, certain customer can be segmented into several different groups depending on how you segment your market. The most common segmentation is by demographic (age, occupation, education, race, religion and so on), occasion (that is when this group of people buy things from you), and benefit (that is what benefit this group of people are seeking for).

Now it becomes easy to understand why segmentation is the key to increase the conversion, thus to lower the cost of new customer acquisition. Because individuals at their ages are seeking for certain product or service that will only solve their individual problem or meet their individual need. If you deliver the right message (benefit) at the right time (occasion and demographic), people will likely be interested in what you offer.

Take a look at your website structure and landing page. Did it address segmentation? Could it be not segmented enough? Has it gone too broad? Are you talking about benefits a lot when you should be focusing on occasion?

Talk to Vancouver online marketing consultant and seek advice on how to properly structure your website to increase conversion.

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Delphine Zhu

Delphine is a blogger, an entrepreneur and a certified International Qigong teacher. Delphine started Qigong practice since her early 20s. She found that Qigong practicing equips her with tons of energy, open and creative mind, strong will power, as well as optimum health. Currently, she is seeking deep level of self transformation and self realization.