One of the common challenges facing today’s marketers is an abundance of customer data but the inability to translate that data into actionable insights. This is especially critical when deciding on which customers to focus your marketing resources. For most businesses, acquiring customers is at or near the top of their priority list. Acquiring new customers is not that difficult though. Acquiring profitable, long term customers is the real challenge. But where to start?
It helps to define your ideal customer. The answer should not be “everyone” or “anyone” unless you’re a brand that caters to the masses like Amazon, McDonalds, or Walmart. How does your customer acquisition cost compare to customer lifetime value? Do you know where your customers came from or why they engage your brand? A well maintained CRM system or customer database can help answer some of these questions.
Once you’ve identified common attributes amongst your top customers, you can identify more prospective customers who will be profitable to acquire by using a cloning model. A cloning model determines the key attributes among your top performing customers, analyzes the data, and then applies those insights against a list of prospects. A cloning model can help you to identify which customers are most profitable or most loyal, and find prospective customers who will perform just like your best customers. This will reduce your cost per acquisition and improve your overall return on marketing investment.
Having access to the right type of data can help you to better understand the entire customer journey and ensure your marketing promotions are relevant, timely, and targeted. For example, life stage data can streamline your customer engagement strategy by optimizing your customer segmentation efforts. High quality life stage data is critical for finding customers who are most likely to be interested in your products and services. This helps ensure you’re effectively tying consumer behavior to specific campaign objectives.
It’s vital to know what your action plan is post acquisition as acquisition really means conversion. For example, it is useless to acquire a customer’s phone number or email address if that customer is a bargain shopper and you’re a prestige brand. Personalized, relevant messaging ensures you’re able to convert your newly acquired customers. Personalization is no longer an optional activity for marketers. It’s an essential component of a meaningful customer acquisition strategy. Consumers are increasingly viewing their shopping as a single, 360 degree experience without regard to channel, which means it’s also critical to have an onboarding strategy in place to engage your newly acquired customers.