Acquiring new customers is crucial for business growth and sustainability, especially in Nigeria, where it can be up to five times more expensive than retaining an existing customer, according to McKinsey & Company.
Marketing strategies can be categorized as offline (traditional methods) or online (digital methods) and include content marketing, influencer marketing, email marketing, social media marketing, referral marketing, and search engine marketing (SEM).
This article will explore the user acquisition strategies and tactics used by popular apps in Nigeria, helping businesses to develop a user acquisition plan that aligns with their goals and target audience.
WHAT IS THE NEED FOR USER ACQUISITION IN THE NIGERIAN MARKET?
User acquisition is critical for business growth and success, and this is especially true in the Nigerian market. Here are some reasons why user acquisition is essential in Nigeria:
Large and growing population: Nigeria has a population of over 200 million people, with a rapidly growing middle class. This presents a significant opportunity for businesses to acquire new users and expand their customer base.
Increasing Internet and mobile penetration: Nigeria has over 100 million Internet users and over 172 million active mobile subscribers. This presents a significant opportunity for businesses to leverage online and mobile channels to acquire new users and tap into the country's rapidly growing digital economy.
Growing e-commerce market: Nigeria's e-commerce market is rapidly growing, with an estimated market value of $3.5 billion. This presents a significant opportunity for businesses to acquire new users in the online retail space and compete with established players.
Fintech growth: Nigeria's fintech industry is expected to reach a market value of $743 million by 2024. This presents a significant opportunity for businesses to acquire new users in the fintech space and provide innovative financial products and services.
Let us look at some successful user campaigns
In 2019, PIGYVEST launched a campaign called "PiggyBank Stories" that encouraged users to share their savings stories on social media using the hashtag #PiggyBankStories. The campaign went viral and helped Piggyvest gain new users and increase engagement.
In 2020, Flutterwave launched a campaign called "The Unstoppable Campaign" to showcase how their platform helped small businesses and entrepreneurs during the COVID-19 pandemic. The campaign featured videos of small business owners sharing their success stories and how Flutterwave helped them stay afloat during the pandemic.
In 2019, Jumia launched a campaign called "Jumia Mobile Week" to promote sales of mobile phones on their platform. The campaign featured discounts on popular smartphone brands and attracted a lot of customers, helping Jumia increase its revenue and market share.
Jumia
Jumia has been in business since 2012 and has had its mobile app downloaded over 10 million times. (Jumia. (n.d.). About us. Retrieved March 16, 2023, from group.jumia.com/about)
Jumia has employed various strategies to acquire users for its app. They have focused on building a strong brand image and leveraging social media to engage with potential customers. Additionally, Jumia has invested in digital marketing campaigns, including influencer marketing and targeted advertising to attract users to their platform.
One of the biggest challenges that Jumia has faced is the relatively low adoption of e-commerce in Africa compared to other regions. Making it difficult to attract and retain users for their platform. Jumia tried and failed its attempt to launch a mobile money service in Africa. While mobile money is popular in Africa, Jumia's mobile money service failed to gain traction, and the company eventually shut down the service.
To succeed, Jumia has focused on providing quality customer service, delivering a seamless user experience, and leveraging technology to streamline operations.
PIGGYVEST
As of February 2023, Piggyvest has over 2 million users. ( Piggyvest. 2023, February. Piggyvest Milestones. Retrieved March 16, 2023, from piggyvest.com/milestones)
Piggyvest used social media marketing, influencer marketing, and referral programs to acquire users. They also offered incentives such as cash bonuses for referring friends to the platform. Piggyvest faced challenges in building trust with users and overcoming the skepticism that many Nigerians have towards online financial services. Its success was largely due to its ability to build trust with users through transparent communication and offering incentives for referrals.
Flutterwave
As of March 2023, Flutterwave has processed over 140 million transactions worth over $9 billion. (Flutterwave. 2023 Flutterwave reaches over $9 billion in processed transactions. Retrieved March 16, 2023, from flutterwave.com/press-releases/flutterwave-..)
Flutterwave focused on building partnerships with businesses and offering a seamless payment experience to their customers. They also used content marketing to educate potential users on the benefits of their platform. Flutterwave faced challenges in building trust with users and overcoming the perception that online payments were not secure and its success was largely due to its ability to build trust with users by offering a seamless payment experience and educating potential users on the benefits of its platform through content marketing
Paystack
Paystack launched in 2015, As of October 2023, Paystack had over 100,000 merchants using their platform. (Paystack. n.d. About. Retrieved March 16, 2023, from paystack.com/about)
Paystack used a combination of content marketing, referral programs, and partnerships with businesses to acquire users. Paystack faced a lack of trust among potential users. Many Nigerians were skeptical of online payment platforms and were hesitant to use Paystack. To overcome this challenge, Paystack focused on building a reputation for security and reliability.
Paystack's merchant-focused strategy was one of their most successful acquisition strategies. By building relationships with merchants, Paystack was able to tap into its existing user base and expand its reach.
Practical Approach:
For companies looking to build a successful app and attract users, some practical steps that can be adapted based on a successful strategy include:
Focus on building a strong brand image and establishing trust with potential customers.
Leverage social media and digital marketing to engage with potential users and promote your platform.
Offer a seamless user experience with a user-friendly interface and easy navigation.
Provide quality customer service and support to build customer loyalty.
Leverage technology to streamline operations and improve efficiency.
MEASURING AND OPTIMIZING USER ACQUISITION
Measuring and optimizing user acquisition is an essential aspect of growing any app-based business. It helps to determine the effectiveness of marketing efforts and can help to reduce customer acquisition costs, which is crucial for startups and small businesses looking to maximize their return on investment.
Examples of How Top Nigerian Apps Measured and Optimized Their User Acquisition:
Piggyvest - Piggyvest measured its user acquisition through a referral program. They offered users a cash reward for every new user they referred, which helped to incentivize users to spread the word about the app.
Flutterwave - Flutterwave measured its user acquisition by tracking its conversion rates from website visitors to app users. They optimized their user acquisition efforts by creating targeted landing pages for different segments of their audience, which helped to increase conversion rates.
Kuda - Kuda, a mobile banking app in Nigeria measured its user acquisition by tracking its app store optimization (ASO) efforts. They optimized their app store listing by using targeted keywords, improving their app's description, and incorporating high-quality images and videos to help increase their app's visibility and attract more downloads.
Best Practices for Measuring and Optimizing User Acquisition:
Set clear goals and KPIs for user acquisition and track them regularly.
Utilize various user acquisition channels.
Optimize your app's onboarding process to ensure a seamless user experience.
Leverage referral programs, discounts, and other incentives to incentivize users to spread the word about your app.
Monitor your conversion rates and make adjustments as necessary.
In conclusion, offline marketing, content marketing, influencer marketing, email marketing, social media marketing, and referral marketing, are all effective ways to promote a product or service. The key is to understand the target audience and choose the marketing channels that are most likely to reach and engage with them.
Continuous user acquisition is critical for the success and sustainability of any business. Many Nigerian apps have failed due to a lack of effective user acquisition strategies, failing to attract and retain customers. For example, GoMyWay, QikQik, Efiko, and MyPadi, all shut down due to difficulty in acquiring customers and a lack of funding. These examples highlight the importance of prioritizing user acquisition strategies in business plans.
The challenges are unique. To succeed, businesses need targeted and localized strategies using mobile-first approaches, local influencers, partnerships, referrals, and search engine optimization. By adopting these tactics, Businesses can acquire new users, sustain growth, and stay ahead of the competition.