Research shows that increasing the retention rate, even by 5%, can lead to an increase in profit by up to 95%. Similarly, businesses are also 60-70% likely to sell the product or service to an existing customer.
This shows that companies must focus on customer acquisition and customer retention to ensure growth and profit. To understand how to build a customer acquisition plan and retain potential buyers, firms must understand the following principles:
Research the Audience
Identify the Target Market
Identifying a target market and understanding its needs are essential to customer acquisition and customer retention. Companies need to determine what type of clients they want to acquire, how they can reach them, and what services or products they should offer tailored to the target audiences.
Understand their Requirements
Once a target market has been identified, companies can understand their requirements. For example, a business may need to research its target market’s buying habits, preferences, and demographics to determine what product or service it should offer. Companies can also use surveys and other feedback forms to gain insight into their target purchasers’ needs.
Tailor Business Offerings
Moreover, businesses can further create customer acquisition marketing strategies that are tailored to the audience’s preferences. This will help them acquire new consumers more effectively by targeting individuals most likely to be interested in their products or services. It will also help them retain existing clients by offering a product or service that exclusively meets the market’s demand. For instance, identity marketing can be beneficial for businesses to identify their target audience and develop a plan tailored to their needs.
Use Reward Programs
Reward programs are an effective way of encouraging buyers to stay loyal to a business. They can help with acquisition and retention by offering incentives to join and stay with a company.
For instance, a loyalty program might offer discounts after reaching a certain number of purchases or give points that can be redeemed for rewards. This encourages people to keep returning and making more purchases from the brand. It also enables potential buyers who may need to become more familiar with the business to try out the services. For acquisition, sign-up rewards are ideal.
Provide a Personalised Customer Experience
Personalised experiences create a better first impression and make people feel valued. Individuals are more likely to continue engaging with brands that show they care about their individual needs and preferences. Furthermore, it leads to higher satisfaction levels, increasing the likelihood of repeated business opportunities from existing customers and referrals from satisfied customers.
Additionally, it saves time and resources by reducing the effort needed for marketing and sales activities such as lead generation, onboarding, and support, making it easier to reach a larger audience.
From an analytical perspective, personalisation helps identify the consumers that should be prioritized for product or service upgrades and other opportunities to increase their lifetime value. Additionally, it helps businesses better understand their buyers’ interests and needs, so they can make more informed decisions about how to engage with them in the future.
Offer Excellent Customer Support
A good customer service experience helps to create a positive brand image that can attract new clientele and ensure existing ones remain loyal. This approach can help businesses build trust with their buyers by providing helpful advice, resolving queries quickly, and offering personalised solutions. It also helps in building a lasting relationship between the company and its customers.
Consumers who know they will be supported if they have problems or need assistance are more likely to stay with the company for extended periods. Besides, potential customers tend to trust companies that respond to both positive and negative reviews. This is especially true for businesses in highly competitive industries, as buyers tend to look for companies that show a commitment to customer service.
By understanding and applying the basic principles, businesses can create a customer acquisition strategy that will bring in new business and maintain existing customers. Firms must remember that every business is different and will require its unique approach, but if they keep these general tips in mind, they’re well on their way to success.