Customer acquisition management is the set of methodologies and systems to manage customer prospects and inquiries generated by a variety of marketing techniques.
The Customer Acquisition Process:
Customer acquisition requires forethought and strategies. In fact, there are many different customer acquisition strategies that are used as part of the customer acquisition process. Some customer acquisition methods are more effective with specific types of clients, but there are a few basic steps that are included in any type of customer acquisition plan.
The first step of any basic customer acquisition plan is to identify quality potential customers. One customer acquisition strategy involves reaching out to potential customers through call centers and mailing lists. These customer acquisition methods allow companies to determine which individuals and businesses express interest in or already use products similar to those of your company. Next, companies qualify the leads a little further using various research methods to determine the viability of the given lead. If the chances seem likely that you will be able to acquire this new customer, his status is upgraded to that of prospect and assigned to a salesperson for further interaction.
Many customer acquisition programs then include establishing a relationship with prospects to identify their needs and determine how the products offered relate to those needs. Salespeople also attempt to identify unstated needs; these are based on data provided by ongoing conversations and interactions with the prospects. Salespeople also can identify additional needs of prospects and offer additional products so the prospects see a greater value from purchasing the products they already are considering.
Customer Acquisition Cost:
The last thing a company wants to do is spend more on acquiring customers than the customers spend. The cost of customer acquisition (CAC) is the price companies pay to acquire new customers. In its simplest form, the CAC is determined by dividing the total costs associated with acquisition by total new customers, within a specific time period. The cost of customer acquisition is an important metric for companies to consider, along with the lifetime value of a customer. Companies and organizations need to get a return on investment (ROI) fromMARKETING and sales campaigns geared toward customer acquisition. The goal is to achieve a high lifetime value (LTV) to CAC ratio. A 3:1 LTV:CAC ratio is a perfect level.
Benefits of Customer Acquisition:
Using appropriate customer acquisition strategies helps companies to grow, and targeted customer acquisition programs help companies acquire the right customers in a cost effective way. New companies or those with less established products especially need to place a greater focus on customer acquisition. As companies mature, they can shift their focus to customer retention. It’s important to keep in mind that customer acquisition costs often are higher than customer retention costs and therefore require a thorough analysis of the associated benefits. The acquisition benefits also need to be fully quantified in order for companies to accurately gauge the relative value of their customer acquisition process. For established companies to grow most effectively, they should find ways to attract, satisfy, and retain customers.
Tips for Innovative Customer Acquisition:
1. Become engaged in your prospect’s context.
Trigger events usually have really large contexts. If you find out that Company X is moving to larger office spaces, consider what situation prompted that move in the first place. Was the move in response to a competitor entering the region, to a merger and acquisition which increased company size, or perhaps in response to a new product or service offering requiring more space so your customer can become more competitive? Here are three different scenarios which are not addressed by a “one size fits all” sales solution. Use your creativity, and innovation, in considering solutions for your prospects’ context.
2. Think more strategically.
If your company has mandated that the average close for a sale is 60 days, you end up prospecting companies that will close within your company’s time frame. Would you call 60 days strategic thinking? Neither would I. You end up ignoring companies that have a buying cycle longer than 60 days. If you want to create an account base of loyal and retained customers, think strategically. Their larger business contexts allow you to be innovative. How can you leverage small tactical closes throughout your sales year that provide forward strategic momentum in meeting your customers’ business goals?
3. Create a support strategy for new customers.
Instead of leaving new customers to the Customer Service department post-sale, think about maintaining your touch with that customer throughout the duration of each contract. You will end up learning far more about that customer than you did in your initial selling experience. The relationship you build and sustain may result in defining new, and larger, opportunities for the future. Once your own sales vision matches your customer’s strategic vision, you provide innovative and sustainable solutions as a partner instead of pigeon-holed as your company’s local sales rep.
