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Customer Acquisition: and Retention Strategy

Customer acquisition and retention are important strategies. Customer acquisition is gaining new customers through marketing campaigns, referrals, and other methods. Key factors that affect acquisition include advertising, word of mouth, pricing, promotions, product quality, and sales force. Customer retention focuses on keeping existing customers and is less expensive than acquiring new ones. Retention techniques maintain relationships and include rewarding loyalty, improving service quality, and handling complaints to improve satisfaction and reduce customer defection. Effective retention strategies allocate resources to create feedback loops that strengthen bonds with customers over time.

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Bhaskar Saha
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322 views13 pages

Customer Acquisition: and Retention Strategy

Customer acquisition and retention are important strategies. Customer acquisition is gaining new customers through marketing campaigns, referrals, and other methods. Key factors that affect acquisition include advertising, word of mouth, pricing, promotions, product quality, and sales force. Customer retention focuses on keeping existing customers and is less expensive than acquiring new ones. Retention techniques maintain relationships and include rewarding loyalty, improving service quality, and handling complaints to improve satisfaction and reduce customer defection. Effective retention strategies allocate resources to create feedback loops that strengthen bonds with customers over time.

Uploaded by

Bhaskar Saha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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CUSTOMER ACQUISITION

and
RETENTION
STRATEGY
WHAT IS CUSTOMER
ACQUISITION ?
 Customer acquisition is the process of
gaining new customers. This acquisition
can be achieved via marketing
campaigns, via referrals from existing
customers, etc.
Customer Acquisition
Blattberg and Jacquelyn (2001):

The following marketing mix element affects acquisition:

advertising, word of mouth, pricing, segmentation,


promotions, product quality, channel distribution and sales
force. Branding plays a special role in service companies
because strong brands increase customers’ trust, enable
customers to better visualize and understand intangible
products.

(Berry, 2000). Advertising helps to create awareness, create


evolving needs and develops customer’s positive attitude
towards a brand.
4
Steps to Success
 Discovery – Understand Your
Customers

 Strategy – Develop Effective Strategies


 Implementation – Implement Your
Plan
 Measurement – Measure Your
Performance
Acquisition Strategies
 Necessary to fill the pipeline since companies
lose 2-40 percent of their customers every year.
 Mass media advertising still useful here.
 Capture potential user IDs and gain permission
to begin dialogue.
 Begin with defining your target and goals for
the acquisition campaign.
WHAT IS CUSTOMER
RETENTION?
Customers
 Easier to keep a current customer than find
a new one

 What do customers want


– Quality product
– Respect/Appreciation
CUSTOMER RETENTION
 Simply keeping customers and not losing
them to competitors. Modern companies
realize that it's far more expensive to find
new customers.

 Techniques to maintain relationships with


existing customers
Customer Retention marketing is a
tactically-driven approach based on
customer behavior. 

It's the core activity going on


behind the scenes in Relationship
Marketing, Loyalty Marketing,
Database Marketing, Permission
Marketing, and so forth. 
Customer Retention
Zeithaml, Berry and Parasuranam (1996) “The behavioural
consequences of service quality ” showed strong
evidences linking service quality and behavioural
intentions that signal whether customers remain with or
defect from a firm.

Ravald and Gronroos (1996):firms providing superior value


through enhanced offers and customer service can
improve customer satisfaction so that customer retention
is improved.

Fornell and Wernerfelt (1987):in an empirical study on


impact of complaint handling programmes on customer
retention and concluded that marketing resources are
better spent keeping existing customers than attracting
new ones.
11
Retention Marketing is all
about:
 
 Action – Reaction – Feedback – Repeat.

 Retention Marketing requires allocating


marketing resources. 
Retention Strategies
 Can be based on:
– Rewarding
– Bonding
– Service structure strategy

 With two types of bonds


– Programmatic
– Humanistic

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