Customer acquisition

Meaning of customer acquisition

Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers. The importance of customer acquisition varies according to the specific business situation of an organization. This process is specifically concerned with issues like acquiring customers at less cost, acquiring as many customers as possible.

The whole process should concentrate on following considerations:

Primarily it is important to determine and focus on psychology of customers, like how the customers feel and think and then selecting the product segment to be presented to them. Concentrating on how the customers are influenced by the surrounding environment like the business culture, technology, media etc. Analysis of customer behavior and tendency while buying specific range of product. Studying the customers limitation of knowledge processing power which influence the decision making power. Finally its very important to engage best strategies for effectively convincing new customers and improving marketing campaigns.

Principles of aquisition
1. Developing existing or new markets 2. Developing existing or new products 3. Branding programs. 4.Find the right customers 5.Better segmentation for successful customer acquisition 6.Target Your Audience 7.Stay Local 8.Retention through Social Media 9.Providing Extra Value 10.Compelling, focused marketing messages aimed at our best prospects; 11.Simple value proposition and service that is easy to articulate, understand, evaluate, buy and use 12.Good value and fair pricing

Identifying Markets

Customers are acquired through the analysis of existing markets and new markets. New customers can be located in existing markets. Some may be found through the efforts to increase brand switching. Others can be identified when new needs arise as situations change, such as when television programming shifted from analog to digital signals. Further, a product may be featured as being different and better, which is the product differentiation approach to attracting new customers in existing markets.

Developing Products

Acquisition of new customers often results from the

implementation of a product strategy. Products attract new customers by offering new features, eliminating old problems, and solving different needs. Products will be matched with viable market segments. Product development is a marketing strategy in which new goods and services are developed and then added to current lines. These are marketed to existing customers.. Unmet needs, cultural trends, and other developments lead to development and diversification strategies. Product improvements solve specific problems. Product line extensions allow the marketing team to meet more specific consumer needs.

Branding

A strong brand can contribute to customer acquisition. Major brands enjoy the benefit of being the first considered for new shoppers or those in new situations. Eg: Gillette may be the first brand a new shaver will try. Holiday Inn benefits from a well-known brand name that might attract international travelers in foreign countries.

Types of Brands

The primary forms of brands include family brands, flanker brands, brand extensions, private brands or private labels, cobrands, and global brands. A family brand is the name used when a company offers a series or group of products under one brand. A flanker brand is the development of a new brand by a company in a good or service category in which the company has a brand offering. A brand extension is the use of the firms current brand name on new products and new versions of current products Private brands appear in stores that sell consumer goods, such as generic soups and vegetables in grocery stores. They are also found in retailers that launch company private-label brands, such as No Boundaries, Simply Basic, and Kid Connection in Walmart Co branding occurs when two firms work together to market a good or service, such as a credit card attached to an airline or retail chain. Ingredient branding takes place when a product is featured as a key ingredient or component of another product, such as Dolby Sound or NutraSweet. A global brand is one used by a multinational corporation. Strong global brands often possess the advantage of brand equity.

Developing Powerful Brands

The three steps of developing powerful brands include brand awareness, brand equity, and brand loyalty. Brand awareness is the beginning. The two levels of brand awareness include the knowledge that a brand exists followed by knowing what unique things a brand provides. Brand equity is the perception that a brand is different and better. The foundation of brand equity consists of five parts: 1. Differentiation 2. Relevance 3. Esteem 4. Knowledge 5. Emotion Brand loyalty exists when a consumer makes a concerted effort to find and purchase a specific brand. Brand loyalty can take place between consumers and retail operations. It also links customers with specific brands or products. Brand-loyal customers are more likely to become advocates who encourage others to try a brand.

Why Branding principle are important

Establish Trust Build Preference Audience Positioning

Target Your Audience

An "ideal" customer is the person or business who is most likely to buy service or product Don't waste time or effort on people who aren't going to purchase your goods or services.

Stay Local

The people physically closest to you will most likely be your customer base, so it pays to get to know them.

Retention through Social Media

When customers create an online connection to a company's profile, they are expressing their affinity and loyalty. Social media sites are excellent advertising platforms

Providing Extra Value

don't necessarily have to have the cheapest item on the market, but have to make sure that it is of the highest quality