top of page

Challenges faced by startups in acquiring customers

Customer acquisition challenges faced by startups

At its simplest level, customer acquisition is the process of gaining or acquiring customers. It can also involve effectively converting potential leads into customers. Typically, the overall difficulty involved in the process of customer acquisition would vary significantly according to the business needs and the industry in which the business operates.

Without new customers, the organization will eventually come to a halt. Businesses cannot thrive only by focusing on the current customers. Acquisition or finding prospects and then converting them into customers is a crucial process. As per a recent study report, it was observed that around 80 percent of digital marketers were under the pressure of meeting revenue and acquisition targets.

Let us help you understand some of the common challenges that most startups face.

Common Customer Acquisition Challenges

During the creation of a successful customer acquisition campaign, marketers from startup organizations can face specific hurdles.

The overall digital explosion implies improved access to more channels with respect to reaching and interacting with customers than ever before. While it is great to have multiple choices, there is still an increased risk of annoying the prospects at the same time.

Some of the common challenges for startups or modern business establishments include:

#Unreliable Customer Acquisition Challenges

One reason to opt for customer acquisition strategies is to maximize reliability. While factors remain the same, when you spend around $2000 on PPC ads, these will help you obtain double the number of customers in comparison to spending $1000 on the same. However, things do not happen the way we want always.

As a marketer, it is expected that you should analyse your overall spending on strategies related to customer acquisition. Ensure that you are spending only on channels delivering reliable conversion rates.

#Advertising Message Bombardment

Ad bombardment is mostly linked with deterring public interest in the concept of advertising. It is believed that placing trust in advertising has almost become half favourable.

The marketing experts believe that there is a difference between repeating a particular message to make sure that the customer has landed on them and executing it to the extent that it becomes downright annoying. It can be portrayed specifically with respect to online retargeting in which customers feel that they are being followed around on the Internet by the item that they have already purchased.

The issue does not remain restricted to digital channels. Any media channel out there is expected to come up with a balanced distribution of opportunities for seeing or hearing.

Therefore, it becomes evident that developing trust and a positive experience with the audience should be the topmost priority when you wish to plan out a customer acquisition plan.

#Capturing the Attention of the Target Audience

The world portrays a crowded market that is difficult to capture. Consumers in the modern marketing era are bombarded with advertising campaigns round-the-clock. An estimate reveals that consumers are exposed to as many as 5000 ads per day. How can a brand look forward to achieving differentiation with its message in the highly competitive landscape?

Experts reveal that differentiation turns out to be one of the major challenges for startups while developing the customer acquisition campaign.

#Creation of the First Impression with Customers

When you wish to encourage someone to try out your product or service for the first time, it significantly depends on the creation of a positive image of what you are offering.

Marketing is the ultimate key to achieving the same. Messages that you put forth should be engaging and meaningful for getting potential customers to think about choosing your brand.

#GDPR and Customer Acquisition

The GDPR or General Data Protection Regulation has led to the depletion of customer databases. Most businesses out there are not sure of how to use the personal data of individuals effectively.

The given regulation serves to be a specific set of rules responsible for governing the way in which modern organizations protect consumers along with the data that they hold. For marketers, GDPR comes forth with rules about the manner in which you can make use of personal data for communicating with the customers.

One-to-one communications are regarded as strong mechanisms of modern marketing. Of the available list of direct channels, mail turns out to be one of the most successful ways of building relationships. It is not known to be affected by privacy rules applying to electronic media. In most cases, it turns out to be one of the most effective ways of communicating and building trust amongst customers.

#Increasing Costs of Customer Acquisition

Everything comes at a proper price –even customers out there. CPA or Customer Per Acquisition has been increasing steadily on specific digital channels. This is because competition is heating up and audiences are becoming less receptive to the concept of messaging.

A study report in 2019 reveals that the average CPA on digital platforms is rising at a rapid pace.


Customer acquisition starts with the identification of target customers. Moreover, it is also expected to invest time in getting an understanding of the respective preferences, wants, and needs of the customers. Combining the right experience with a media mix can help in adding value to your potential customers to lead to higher conversion rates.


bottom of page