Few topics in the business world stir up as much discussion as the debate regarding whether companies should focus more on retaining existing customers or getting out into the big wide world to attract more.
Experts generally support that customer retention is a vital part of business success, with existing clients calculated to spend 67 percent more than those who are new to your products and services.
However, while that may well be the case, attracting new customers can never be a bad thing – particularly when you consider that such individuals could ultimately prove to be recurring customers in the making. But just what makes good customer acquisition?
There is no simple answer to that question, as the process of enticing new customers and clients to use your products and services can mean different things for different sectors.
For example, streaming services like Netflix and Amazon Prime Video offer free trial periods so that new users can sample their range of movies and shows to see if the platform is the right fit for them. Elsewhere, banks may rely on networking or offer bonuses and special rates to people who are new to their services. Then there is iGaming, with this article on online casinos which allow you to win in Canadian dollars highlighting how many sites offer welcome bonuses and free slots spins in order to pull in new players.
However, while these and a range of other tactics have proven effective for many businesses, new research has suggested that organizations are still feeling the pressure when it comes to expanding their client or customer base.
A study by SheerID and WBR Insights polled 150 digital marketers in the US, including many who work for major companies, to get their views on the importance of customer acquisition. Interestingly, the research published in November suggests the issue remains a major priority, with 77 percent of respondents feeling more under pressure to deliver on their goals than 12 months ago.
Examining why marketers are feeling this way, the study found that standing out from the competition was a concern along with considerations related to privacy laws like GDPR. Another matter raised was rising costs, with many stating that the cost of acquisition from online and social advertising was on the up.
In terms of their key strategies for the coming months, the research found that 80 percent of marketers feel promotions and discounts would be vital. The tactics were revealed to be particularly common in both the travel and retail sectors.
Such findings highlight how although recurring customers are widely viewed as vital to many businesses, many organizations remain keen and very much under pressure to get new faces both through the door and engaged in their products and services.
The debate about customer retention versus acquisition is one which is never likely to go away, but it seems clear that the latter remains a key issue for many businesses as they target a successful 2019.
