Customer Acquisition 4

7/29/2019 Customer Acquisition 4

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CustomerAcquisition

A Smile goes a long way to make acustomer happy CliffordMartis


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In customers Are People: The HumanTouch, author Jon McKean statesthat in competitive markets, wherecustomers have a choice betweensimilar products and pricing, Seventypercent of customer decision-makingis based on how customers are

treated.


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What Is Customer Acquisition?

There are two ways to define customeracquisition. The acquisition transactionperspective says that customer acquisitionends with a customer's first purchase.

The acquisition process perspectivestates that acquisition includes the firstpurchase as well as other non-purchaseencounters that both precede and follow

the purchase, up until the time thecustomer makes a repeat purchase againand again.


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Simple Acquisition Strategy

Right now I want a net connection soenquired for Dishnet and Beam cable.While Dishnet connection was toocumbersome, from Beam cable peoplelanded to my place and did everythingrequired. I heard a lot about this promptaction from several others also aboutBeam cable.

Any customer wanted to buy the goodsand services from that ideal companywhich will make the process easy and lesspainful


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Identify the Customer

Experience Gap

This is the difference between whatcustomers want and what they get.

Example: An auto Componentmanufacturer with a strong brand spends

lot of money on corporate sponsorshipsand publicized a rebate to spark the sales.This is prominently displayed on a portionof the website, but when Mr Srinivas went

in for this and tried for the offer thefollowing message has popped up searchfor cash bonus offer found 0 documentsfrom 243 in this subject


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Process of Acquisition

Identify the right customers

Close the customer experience gap

Reach the customer with right offerby right differentiation


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Requisites for Effective

Acquisition

Attempt to Minimize FUD-FearUncertainty and Doubts

Focused Approach

Providing a Win-Win PlatformInitiate Forum for Communication

Project Benefits and not Products

Focus on Decision Process


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Objectives of Acquisition

Decrease sales, marketing and servicecosts through better execution

Increase win rates by anticipating andresponding to prospect and understand

customer needs Enhance the customer experience for

improved loyalty

Increase revenue through differentiatedproducts and services


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Identify the right customers

Through different sources available tothe company

Using marketing information

Using relationship information Using calculated information


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Using Marketing Information

This is also known as third partysource. This contains all thedemographic data regarding thecustomers

Example: BSNL lists the phonenumbers, Websites, Researchagencies. This can be free or for aprice or for lease


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Using Calculated Information

Derived Information: here relationshipor market place facts are used incombination with other facts or theinformation is summarized over a

period of time. (Scoring) Inferred information: taking old

customer behavior and trying to find

new customer keeping this as a base(Modeling)


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Analytics Technology

Modeling: uses data miningtechniques to identify customers thatfit optimal profits for plannedcampaigns

Scoring is the process of applying themodel, a complex arithmetic equationto your target audience and

associating a number with eachindividual (RFM)


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Closing the CustomerExperience Gap

Ping Ans insurance story with 3A serviceprinciple Anytime, Anywhere,Anyway

Statement of 3A You can get satisfactory

services from Ping Ans insurancecompany

Use of multiple touch points

Call center, store based services, directsales services, regional special stories andaccess through net.


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Establish the Visibility of theProduct or Service

Multiple Touch-Point with the Consumer

1. Television

2. Radio3. Print

4. Paging

5. Onlinewww.setindia.com6. Billboards
http://www.setindia.com/http://www.setindia.com/


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8. Outdoor9. Vans11. Street Furniture12. Direct mail

13. Viral marketing14. PR15. Community building and loyalty program16. Merchandising

17. Fashion show


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Process of MOT Identify those moments between

employees and customers, thecustomers and service environment andbetween customers and other processthat are capable of creating some

specific experience. The identified MOT are categorized andclassified and assigned to respectiveemployees

Those employees are empowered andmotivated to make better decisions

The employees should be highlyinnovative and empathic


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Situation Two

A consumer enters a service outletand is unable to identify the rightperson to contact. One employee ofthe service outlet greets him with a

smile and enquires about the work.The employee guides him to the rightperson, maintaining all courtesies.The customer contacts the rightperson and gets the work done. Heleaves the office happily


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Two Ms of MOT

Magic Moments means that theemployee performs a moment of truthwith quality service and the customerfeels that he has received more thanwhat is expected:

Misery Moments


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Acquisition Strategies

An Effective Acquisition Strategy is

best achieved by having an EffectiveRetention Strategy


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Reach the customer with rightoffer by right differentiation

1. Objectives for Life Time ValueNatural Referrals

Affinity Programs

Affiliate Networks2. Strategy for Targets and

Designing Mixes

Relative advantageNo switching costsEntry reassurance


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1.Natural Referrals

Everybody is talking about it.

The best way to acquire new customers isthrough the sincere and heartfeltrecommendations of satisfied, loyal

customers. Loyalty guru Reichheld has found one

simple metric for customer acquisition thewillingness of a customer to recommendthe company to a friend orcolleague

Example: Southwest Airlines and Harley-Davidson Bikes

This is Free Marketing

ff


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Affinity Programs

Incentives for Referrals fromGroupsAn effective CRM plan for generatingreferrals

Creating an Affinity MarketingProgram is a means to gain access tothousands of potential customers

Affinity Marketing is a Strategy that isbased on Marketing to GroupMemberships or Associations


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Group-purchasing Programs leverage theCollective Buying Power of Association

MembersExample ICICI bank credit card with any

superbazarAffinity Marketing Program developsFrequent Buyer Program with customervalue in exchange for a membership(endorsement / co-branding)

Affinity Marketing works best when thegroup has common interests and cohesivevalues that reinforce long-term relationship


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Affiliation Networks

paying Commission for ReferralsAn Affiliate Network Program is aprocess to reward people who act assales agents for the organization andwho receive a commission on eachsale based on referral.

R l ti Ad t


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Relative Advantage

Give them something to talk aboutFinding a new use for a product orservice or improving / reforming aproduct can be means to acquire new

customersStrong relationships with InnovativeCustomers and with Dissatisfied

Sources can be valuable sources fornew product ideas.


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Another source for New Product ideas istracking Customer Complaintswhich represents the Organizations first

opportunity to prevent a Customer from

becoming Lost


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Eliminate excuses to stay with theCompetitor

Attack competitors barriers to exit toacquire new customers

Eg : Transfer or convert competitorsreward programs redeemable points ifcustomer switches loyalties

Example ABN AMRO Bank for Home loansA MSN advertisement uses the headline:

With new hassle-free switching tools,leaving . Is, well hassle-free. and evenoffers $ 50 back after three months

Switching Costs


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Promotional offers for customers whoswitch from competitive firms typicallyease the transfer task for thecustomer and take a customer-centricfocus on barriersProduct sampling is another way toreduce the perceived cost of

switching from a competitorproductsample or free trial of service


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Money-back guarantee over a lengthof time is another means to reducebarriers of entry and ensure moneyspent to acquire customers fromcompetitors will result in a return onthat investment. It is promise torefund price or freely replace if

product / service fails to perform asthe customer expects.


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Points of Entry

The initial contact for acquisitionFor many products it is possible topredict the point of entry when aNever-before-Consumer becomes aCustomer or use of the serviceIdentifying and interacting with theseCustomers when they approach the

point of entry is a fruitful acquisitionstrategy


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At 2 AM, on Wednesday, Jan 20

th

2007, inApollo hospital, a consumer was born. Bythe time she went home three days later,some of the biggest marketers are

pursuing her with samples, coupons andassorted freebies. P&G hoped its Pampersbrand would win her bottom. J&J offeredup a tiny sample of its baby soap and oil,

Bristol-Myers Squibb Co, sent along someof its Enfamil baby formula.


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Welcome to Enfamil Family

Beginnings...a program that bringsyou

Customer Acquisition 4

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