Every business is concerned with customer acquisition,
whether that business a small family-owned business or large corporate empire across multiple continents. Whatever the size or vertical, Enriched Analytics can help a business acquire new customers better, faster, and cheaper. In order to see the true power of enriched analytics at work, we must first dive into a deep understanding of what is required to achieve customer acquisition glory, and how to most effectively reach your goals.
What is Customer Acquisition?
Customer acquisition refers to the strategies, tactics, and actions used by a business to find and acquire new customers for the business’s products or services.
Let’s breakdown this definition further:
Strategies refers to the high-level approaches and plans that a company uses to find and acquire new customers. Examples include demand generation, inbound marketing, or outbound marketing.
Tactics refers to specific categories of techniques used by a company to accomplish a particular customer acquisition strategy. For example, “digital advertising” is a tactic that is used in the strategies of demand generation/outbound marketing.
Actions refers to the actual activities undertaken by a company is pursuit of a particular customer acquisition tactic. For example, “Facebook advertising” is an action a company may take as part of an “online advertising” tactic.
Find refers to locating the leads and prospects that can be converted into customers. Companies can find leads and prospects in a particular geographical area (such as a Designated Marketing Area (DMA)), a marketing channel where the leads and contacts can be found, or even through a referral partner.
Acquiring refers to converting leads and prospects into actual customers (and revenue).
New Customers makes clear that customer acquisition is about new sales to new customers, not repeat sales to existing customers.
Customer Acquisition Strategy
Of the above, by far the most important element is having the correct customer acquisition strategy. It is also the element that companies most frequently get wrong.
A Customer Acquisition Strategy refers to the high-level approaches and plans that a company uses to find and acquire new customers. To choose the most efficient and effective strategy, a business needs to understand the following:
- Who their customers are (including new customers, repeat customers, high average order value customers, high unit order customers, high margin customers)
- What their customers are purchasing (including top purchases, purchase combos, emerging purchases)
- What campaigns attract their customers’ responses (including preferred method of outreach, interests)
- Where their customers are and where similar customers can be found (including top locations, emerging locations, look-a-like zip codes and DMAs)
Most businesses understand the basics of these requirements using transactional data from their sales platform along with anecdotes and observations from the sales team, customer success team, and senior leadership. Unfortunately, these sources are often misleading or just plain wrong.
Enriched analytics makes answering the above question faster, simple, and far more accurate. By combining an organization’s data with billions of third-party data points through identity resolution, enriched analytics “unlocks” insights, predictions and personas otherwise unavailable to sales and marketing teams. These insights, predictions, and personas help organizations makes better decisions – including choosing the correct customer acquisition strategy.
Example: one of the initial questions that every sales and marketing team has to answer is what channel should they use to contact particular leads and prospects. Enriched Analytics makes it possible to predict what each person’s preferred channel would be, thus allowing sales and marketing teams to optimize their outreach by using the channel most likely to elicit a response.
Customer Acquisition Funnel
A customer acquisition funnel illustrates that leads and prospects have jump aboard a progressive journey before ever converting into a customer.
At every stage of that journey, some leads and prospects will jump ship as they approach the opportunity of being a customer. As you visualize this, you will notice the large group of eager individuals in the early stages ultimately weeded out throughout each stage of the sales journey to leave you with the ones who have an affinity for your offering.
Enriched Analytics can help businesses at every stage of the customer acquisition funnel by providing:
- Personas: telling businesses who among the leads and prospects are most likely to progress towards converting.
- Predictive insights: enabling businesses to understand the characteristics of leads and prospects at every stage in the funnel.
- Basic predictions: identifying which contacts and leads are most similar to the personas and predictive insights of contacts that will eventually convert.
- Advanced predictions: identifying leads and prospects who have the right spending capacity and then determine what channel of outreach would be most successful for each individual.
- Custom predictions: allowing companies to predict which leads and prospects are most likely to convert.
- Location analytics: allowing companies to predict where additional customers are most likely to be found.
Implement Your Customer Acquisition Plan with Enriched Analytics
Here are concrete steps a business can take to advance their Customer Acquisition Strategies and refine their Funnel with practical implementation from Enriched Analytics:
- Enrich your customer and sales data with third party data in order to generate personas and predictive insights of key customer categories: new customers, repeat customers, high value customers, high unit customers, and high margin customers.
- Use the personas and predictive insights to select the customer acquisition strategies most likely to succeed with potential customers. This includes outbound marketing/online advertising aimed at the personas revealed through Enriched Analytics.
- Enrich your lead and prospect data by adding basic, advanced, and custom predictions that allow your sales and marketing teams to focus their efforts on those leads and prospects with the greatest chance of converting. Then, select the appropriate tactics and actions most likely to convert them.
- Enrich campaign results with third party data to do a detailed historical analysis that allows sales and marketing teams to iterate and improve their customer acquisition efforts.
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boodleAI is a Cloud-Based Provider of Enriched Analytics for sales, marketing, and fundraising teams. Enriched Analytics are insights and predictions made possible by matching an organization’s contact and transaction data with billions of third party data points. Sales, marketing, and fundraising teams use enriched analytics to better understand customers and donors, analyze sales and donations, gain insights into specific contacts, and predict what contacts will do. Guidon, boodleAI’s Cloud-Based Software, makes Enriched Analytics available to every organization and every budget through usage based pricing. Visit boodle.ai.