Acquiring Users on a Budget: A Tech Startup’s Guide

In the early days of a tech startup, user acquisition is the oxygen that fuels growth. But let’s face it, acquiring users can be tough, especially when you have limited resources and are facing fierce competition. So how do you break through and get the right users?

We have been in the trenches and seen things from many angles. We’ve got the inside scoop on user acquisition, and in this article, we’ll be sharing our favourite hacks, the metrics that matter, and low-cost tactics for boosting your user base. It’s time to master user acquisition and drive the growth of your startup to the next level. So let’s get started!

Channels for acquiring users

To get the right users for your tech startup, it’s important to choose the right channels. But with so many options available, how do you determine which ones to focus on? It can be tricky, especially for early-stage companies with limited resources.

The best channels for user acquisition will depend on the type of product you offer, and the target audience’s behaviours. For instance, a B2B software company may find success through LinkedIn and conferences, while a consumer-facing e-commerce company may find success through influencer marketing and Facebook ads. You need to figure out which channels work best for you and experimenting with different channels can help you do that.

Here are some user acquisition channels to consider:

Social Media

With a bit of creativity, it’s possible to get users on social media without a budget. Share your product with your network, create engaging content, take part in online communities related to your product, and offer incentives for referrals.

Content Marketing

Create valuable content that your target users might find useful and publish it in the form of blog posts, videos, or infographics. Engaging content that meets the needs of potential customers will attract and organically convert them to users of your product.

Referral Marketing

Encourage your existing users to refer others to your product or service by offering incentives like discounts or exclusive content. This involves incentivizing existing users to refer friends, family, and colleagues to your software. A well-designed referral program can help increase your user base, lower customer acquisition costs, and improve customer retention.

Paid Advertising

Paid advertising on social media, Google AdWords, streaming platforms, radio, or television can reach a large, targeted audience. Make sure you have a clear understanding of your target audience before starting.

Search Engine Optimization (SEO)

SEO gives search engines like Google clues to help them understand what your website is about, so it knows when to show your website to people who are looking for things related to your website. You need to apply SEO when you publish content on your product website so that the users that are likely to need your products can find you.

Community

Building a strong community can help increase brand awareness, improve customer loyalty, and drive referrals. You can create and engage with a community of users through forums or events.

By experimenting with these channels, you can determine which user acquisition channels work best for your tech startup and adjust your strategy accordingly.

Quality over quantity

You need to focus on quality over quantity, you can ensure that your user acquisition efforts are more cost-effective in the long run. Low-quality users might generate a lot of clicks, but they’re not likely to stick around or become paying customers. On the other hand, high-quality users are more likely to engage with your product and contribute a higher lifetime value.

So, what’s the key to catching those quality users?

1. Know and understand your target audience: Figure out their pain points and tailor your messaging and product offerings accordingly. This will help you attract the right users who are more likely to become loyal customers.
2. Build a strong brand image: Users are more likely to stick around if they are proud to be a part of your community. So, put your branding game face on and make sure your reputation is top-notch.
3. Stay current and keep an eye on your target audience: Stay up-to-date on the latest trends and technologies. Regularly observe your target audience to make data-informed decisions to ensure cost-effective user acquisition and long-term success.

How can you tell you are doing it right?

A successful user acquisition strategy thrives on feedback. You may have begun getting users to sign up for a demo or free trial of your app, but that is not the end of the journey. You can tell if your user acquisition strategy is working by keeping a close eye on cost per acquisition, conversion rate, user retention, and lifetime value.

1. Cost per Acquisition (CPA): This metric measures how much it costs to get a new customer. It constitutes the cost of tools, marketing, and sales. The lower the price, the better the return on investment.
2. Conversion Rate: This measures the number of users taking desired actions, like making a purchase or signing up for a free trial. High conversion rates mean you’re targeting the right audience.
3. User Retention: Measure the number of users who stick around and use your product or service. It is five times more expensive to acquire new customers than to keep old ones. This metric will help you understand the kind of users that can actually bring long-term profit to your business. You can use that information to improve your user acquisition strategy.
4. Lifetime Value (LTV): Lifetime value is an estimate of the total value that a user will bring over time. It shows customer loyalty and customer engagement so it can powerfully inform your user acquisition strategy and even product development.

What next?

But hold on, after the acquisition, what next?

All the hard work you’ve put into attracting users might be undermined if their first experience signing up or logging in to use your product or service is anything less than seamless and secure. Why spend time and resources building your own signup and authentication system when you can have a trusted, low-code solution at your fingertips?

Our low-code developer productivity tool, AuthX enables you to create sign-up and login pages effortlessly for your applications or websites. With options like 2-Factor Authentication, passwordless login, social sign-in using Facebook or Google, and more, your users can enjoy easy accessibility, security, and flexibility while you focus on attracting more users.

Don’t forget to keep track of your user acquisition progress. Based on the data you track and industry trends, you may find out that you need to re-evaluate your target audience or switch to a different user acquisition method.

User acquisition is a journey that never ends. So you should embrace a mentality of continuous optimization and experimentation. Track your results, and be open to making changes when needed.