Customer Acquisition Is Broken. Here’s The Fix.

For years, businesses have been obsessed with one thing: more leads, more sales, more growth. But here’s the problem: customer acquisition costs are through the roof, and most companies are still playing by outdated rules. 

I’ve seen this firsthand. Working with startups, financial service firms, and software-as-a-service (SaaS) companies, the story is the same: they pour money into ads, watch acquisition costs rise, and then panic when conversions drop. The real issue? They’re treating acquisition like a one-time transaction instead of a long-term strategy. 

If your customer acquisition costs are climbing and your return on investment (RoI) is shrinking, here’s how to fix it—without burning through your budget. 

Mistake #1: The Paid Ads Addiction 

Businesses love paid ads because they offer instant gratification. But here’s the reality—if your entire acquisition strategy relies on Meta and Google Ads, you’re one algorithm change away from disaster. 

Instead of throwing more money at ads, companies need to build owned acquisition channels. Content marketing, search engine optimization (SEO), partnerships, and email lists aren’t as sexy as a quick pay-per-click (PPC) campaign, but they’re sustainable. A high-performing blog post or an engaging LinkedIn strategy can drive leads for years, without the constant spend. 

So, what should you do? Here are three ideas: 

• Invest in SEO-driven content that brings in organic traffic. 

• Build a newsletter that nurtures leads without paying for each click. 

• Partner with industry influencers and brands to expand reach without ad spend. 

Mistake #2: The Funnel Ends at the First Sale 

Acquisition doesn’t stop when a customer buys—it starts there. Yet, too many businesses focus on new leads instead of maximizing lifetime value. The most successful companies treat every new customer as an opportunity to drive repeat business, upsells, and referrals. 

I worked with a SaaS company struggling to lower its acquisition costs. Their solution? Instead of spending more on ads, we optimized their onboarding experience and built a referral program. The result? Their cost per acquisition dropped, and their revenue per customer shot up. 

Here’s what you can do to enjoy the same results: 

• Create a seamless onboarding experience that increases retention. 

• Build a referral program that incentivizes word-of-mouth marketing. 

• Offer upsells and cross-sells to increase customer lifetime value. 

Mistake #3: Chasing Leads Instead Of Building A Brand 

A well-known brand doesn’t have to fight for attention—customers come to them. Yet, many businesses spend 90 percent of their budget on acquisition, and 10 percent (or less) on brand-building. That’s backward. 

The companies winning today invest in thought leadership, community-building, and storytelling. They don’t just sell products—they create a movement around their brand. Look at companies like Patagonia or Apple—people buy into their story, not just their product. 

So, how do you do it for your business? Here’s a primer: 

• Develop a strong brand narrative that makes people want to engage. 

• Focus on thought leadership through LinkedIn, speaking engagements, and articles. 

• Build a community that drives organic engagement—think Slack groups, exclusive events, etc. 

The Bottom Line 

Customer acquisition isn’t just about spending more, it is about spending smarter. If your strategy relies entirely on ads, ignores lifetime value, and overlooks brand-building, you’re setting yourself up for failure. 

Instead, shift your focus to sustainable growth. Build organic channels, maximize retention, and invest in your brand. The businesses that do this don’t just acquire customers—they create loyal advocates. And that’s the kind of acquisition that never stops paying off. 

About The Author 

Vickram Agarwal is a visionary entrepreneur, blending digital innovation with bold leadership to create and scale successful ventures. His career spans industries and continents, from working with global brands to founding companies built on transformation and growth. 

Vickram’s marketing journey began with General Motors in Dubai, leading him to establish Stroke Consulting in 2011—a strategy and digital marketing agency serving brands like GMC, Chevrolet, Kawasaki, and MasterCard. 

Always driven by innovation, Vickram launched Daddy’s Digest, a platform that redefined parenting content and was acquired in 2021. He also served as Chief Marketing Officer at a leading financial services organization, spearheading initiatives that impacted millions. 

Recognized as an emerging leader with The Globe and Mail’s Changemaker Award in 2023, Vickram now leads S1:E2, where he crafts growth strategies that drive lasting impact. He also mentors startups through Techstars and contributes to the entrepreneurial ecosystem through board and council roles.