Any acquisition program needs to fill several important roles. Naturally, these efforts must focus on attracting new clients, but it is also crucial that they are doing so in a way that is cost-effective and that drives customer retention. It’s simple to get clients on board with an expensive gift card, for example, but rewards like this are very limited in their ability to fill the conditions of being low-cost to the business and creating repeat customers. Instead, marketers should focus on solutions that are high-value and give consumers a reason to stick with the brand for more than just a few visits.
A persistent problem
According to HubSpot, one of the most important challenges that enterprises face in their acquisition marketing efforts is simultaneously keeping opportunity high and customer acquisition costs low. This is particularly pressing for enterprises, the source noted, because these organizations have large customer bases. If the cost of acquiring new clients is high or even grows over time, the matter could easily spiral out of control, leading to low ROI.
Addressing this problem will be different for every business, but there are some strategies that every company should keep in mind. HubSpot pointed out that among the most important things to remember when attempting to lower the cost of customer acquisition is to make marketing solutions work harder. But how is this achieved? The source stressed that enterprises must engage in segmentation, personalization and targeting. The more an organization knows about its customers and the more actively an organization uses this information, the better results will be.
There are many ways that businesses can improve the relevance of their acquisition efforts, and Spinnakr recommended that using incentives and perks is a strong strategy. People love instant gratification, so rewards that are easy to redeem and can be used frequently on the things customers want most can fuel ongoing brand loyalty for a low price. The source stated that among the best ways to encourage desired customer behavior is with buy-one-get-one deals, which are especially appealing to many clients. Coupons that are substantial are the ones that consumers will be most eager to use, and if enterprises choose the right marketing solutions, they can get ahold of these valuable deals at a low cost per customer.
Rewards don’t have to be expensive for a company to fuel strong acquisition ROI. In fact, by using a low-cost option such as a private-label, customized savings programs delivered via coupon booklets, online savings sites or mobile coupons and filled with premium deals on highly desirably products and services, enterprises can give customers the opportunity to save on an ongoing basis. Knowing about these deals not only incentivizes spending with a brand, but it also keeps the company that provides the discounts at the top of consumers’ minds. When clients recognize that they can continually receive added value by developing a relationship with a business, customer retention will improve, driving healthy results over the long term.