Acquiring new customers can be a costly endeavor, especially when compared to customer retention costs. In fact, it generally costs five times more to acquire a new customer than to keep an existing one. There are many customer acquisition channels that companies and organizations use to acquire new customers, including websites, email, social media sites, direct mail, SEO and PPC, web banners, and mobile devices, among others. Yet, statistics show that the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%.
What does all of this mean for your organization? You need to be smart about your customer acquisition marketing to achieve a desirable return on investment (ROI). It also means that you need to put the data you have about your prospects and customers to better use for smarter acquisition and retention. NGDATA has exactly what you need to be competitive by utilizing the power of Big Data to help you better understand your customers: Lily.
The cost of customer acquisition (CAC) means the price you pay to acquire a new customer. In its simplest form, CAC can be worked out by dividing the total costs associated with acquisition by total new customers, within a specific time period. CAC is an important component for any business, along with the lifetime value of a customer, because your company needs to be profitable by getting a return on investment from all of your marketing and sales campaigns. You need to be savvy with your customer acquisition strategy so that you acquire new customers in a cost-effective way.
New customer acquisition requires knowing what drives your customers and investing in more intelligent inbound marketing strategies such as better targeted content, email newsletters, and search engine optimization (SEO). With inbound marketing, your customer acquisition plan draws in new customers with value-generating resources. The resources provided by your targeted content will drive customers for the life of your business, as opposed to outbound marketing strategies, which require companies to continually spend money on scatter campaigns that deliver less response acquiring new customers.
Your customer acquisition plan may include a mix of content marketing, search engine optimization, email marketing, copywriting, social media marketing, conversion rate optimization, and analytics.
John Rampton, a Forbes contributor and entrepreneur who is a top online influencer, blogging expert, and PPC expert, outlines his customer acquisition marketing strategy in “Content Marketing Funnel: 5 Steps to Customer Acquisition” for Forbes.
None of your content marketing efforts or customer acquisition strategies will matter if you are not delivering a better customer experience. NGDATA’s Lily Enterprise helps companies build Individual Customer DNA Profiles in real time to deliver more personalized customer experiences. With Lily, you can leverage your big data by connecting all of your data sources in real time to better engage customers for more effective marketing campaigns and greater customer lifetime value.
Simply put, Lily helps you know each of your potential customers at an individual Customer DNA-level to help you convert them and change your business for the better. Specifically, Lily unlocks data silos to create a single customer view that builds a detailed record of each individual customer’s behavior. With thousands of built-in industry-specific metrics, Lily’s Customer DNA helps you gain a complete understanding of your prospects and customers and leads to more effective acquisition targeting and results.
Customer DNA, and therefore, insights you gain with Lily are updated in real-time and trending scores for each customer. These can also be compared with sets of customers that you define. Plus, Lily’s automatic trend calculation allows you to track and see evolving metrics over time. These real-time customer metrics also can alert you to proactively address individual customers before they churn. Best of all, Lily’s Preference Learning capabilities help you to know which customers are likely to buy today and how best to connect with customers at each moment, in real time.
Get unprecedented knowledge of your customers at every step of the customer acquisition process with NGDATA and Lily Enterprise.
NGDATA helps brands in data-driven industries, such as financial services, telecom, utilities and hospitality, to drive connected experiences. Our Next Generation Customer Data Platform, Lily™, puts people at the center of every business via Lily’s Customer DNA, which continuously learns from behavior to deliver compelling experiences for companies, such as Belfius Bank, Innogy and Telenet. NGDATA is headquartered in Gent, Belgium and has offices in the United States, Europe and Asia-Pacific.Learn More...