Both customer acquisition and customer retention marketing are both vital aspects of marketing for any business. No doubt that you’ve heard that one is better than the other, but do you really understand the differences between the two?
If you are trying to decide on which strategy is best for your business then read on to discover the in’s and out’s of both so that you can make an informed decision on the best path to choose.
What Is Customer Acquisition Marketing?
The primary goal of customer acquisition is to obtain new customers through a variety of marketing strategies. In layman’s terms, it’s the methods you use to gain new customers for your business.
Consumers who are targeted through Pathwwway Internet Gaming customer acquisition strategies are people who haven’t used your company’s products or services in the past. Your acquisition marketing strategy is basically communicating with new customers through targeted messages.
When embarking on your journey into customer acquisition you will need a large advertising budget in place, in order to reach and acquire as many new customers as possible.
There have been many studies over the years which have all conclusively found that it’s around five to six times more expensive to acquire a new customer, than it is to retain an existing one using customer retention marketing.
Customer Acquisition Strategies
Now you understand what customer acquisition is we can get into strategies. Typically your acquisition strategy should try to achieve the following:
- Identify potential customers and demographics
- Design and implement marketing strategies from market research
- Follow up with prospects on potential sales
- Measure the success of your strategies so far
There are several Pathwwway Internet Gaming strategies that businesses can utilize to acquire new customers. We’ve listed a few of the most common tactics below.
The most commonly used tactic when looking for new customers is advertising. In order to spark the interest of potential new customers you can design advertising campaigns around new and existing targeted demographics.
There are multiple ways that you can advertise nowadays from tv and radio to social media, viral marketing campaigns or partnering with other businesses.
Market development is a strategy that refers to offering your existing products to new markets in search of new customers. In order to implement a successful market development campaign you will need to do a lot of market research before you launch any tactics.
A big business example of this is expanding and entering into new countries to expand market reach and to increase revenue. However this can also be done on a smaller scale. Always targeted people over 40 in urban areas? Then why not look at a different demographic? Think about how you could market your product to a different audience.
What Is Customer Retention Marketing?
While the focus of acquisition is on new customers, Customer retention marketing is all about nurturing the relationship with existing and previous customer. This is so that they will continue to use the products and services that your company offers and they become loyal to your brand.
In order to encourage customers to continue buying from your business you need to focus on the following customer retention marketing strategies:
- Excellent customer service
- High quality products and services
- A customer focused environment
- Rewards schemes for loyal customers
Strategies for Customer Retention
With the definition of customer retention marketing under your belt we can now take a look at a couple of the strategies that will keep your customers coming back for more.
Incredible Customer Service
If you are serious about retaining your customers than you need to be impressing them with outstanding service with every interaction they have with your business.
Having a constant focus on improving the quality of your customer service will delight your customers. This will allow you to curb expensive customer acquisition strategies as you won’t be constantly chasing fresh customers.
What’s more is that a satisfied customer can be your best advertiser! Keep your customers happy and they will spread valuable positive word of mouth marketing for you.
Since maintaining existing customers is cheaper than finding new customers, you will be able to focus some budget on market penetration.
This is a useful strategy that involves shifting your focus to selling more of your existing products in existing markets, in order to gain a bigger share of the overall market.
Customer Life Cycle Value
Customers buy from brands that they know and trust. When you focus on customer retention marketing your customers will gain more and more trust in your business. As they gain more trust in you and your products over time they will consume more of them.
Each customer has a ‘Customer lifecycle value’ which is a marketing concept that emphasizes maximizing profit from a customer over a long period of time. By focusing on retention you’re driving your customer’s value up.
Increasing your customer’s lifecycle value isn’t a short-term tactic it’s a method which creates sustainable long-term profitability within your business.
Rebranding isn’t used very often in customer retention but it’s a marketing strategy that can bring your customers back into the fold.
Rebranding is when you change the name, design or logo of an established brand. When a business rebrands, the aim and intention is to develop a new, differentiated identity in the minds of consumers and customers.
This can be useful if your brand has fallen out of favor or has garnered a negative reputation with the general public. With a successful rebrand campaign you can transform the image of your brand in order to associate it with the values that you feel are relevant.
Summary: The Difference Between Customer Retention And Acquisition
The biggest difference between customer retention and acquisition is whether you are focusing on serving existing customers or trying to acquire new ones.
You may be interested in taking advantage of both methods but remember that it is a lot more expensive to acquire a new customer than it is to keep your existing customers.
If you decide to focus your efforts on acquiring new customers, you shouldn’t ignore your current clients or the techniques from customer retention marketing. Your existing customers can actually help you to attract new customers through positive word of mouth and referrals and can end up being one of your best advertising methods.