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Assignment - 3: Managing the Customer Journey – Customer Acquisition
Question 1: What is a customer journey or customer life cycle?
Consumers go through the customer lifecycle to consider, purchase, use, and
remain loyal to a service or product. Getting a potential customer's attention
starts the customer lifecycle. Customers should ideally go through this
procedure several times, so it is represented as an ellipsis. For firms to remain
competitive, they must manage and maintain clients' lifetimes. The organization
can maximize revenue from new and existing customers by understanding the
client lifecycle. In conclusion, client lifecycles are nonlinear because they follow
a cyclical pattern. The company must remain on top of its consumers' minds
through continuous and relevant communication or its top-of-mind awareness
will quickly fade. Retaining customers is the ultimate goal of building strong
brand loyalty.
There are three core stages that all customers go through throughout a
business relationship:
 Acquisition: A company's expansion is helped by acquiring new
customers. On the other hand, many firms don't focus on acquisitions
because they believe retention and development are more expensive. This
acquisition allows for an opportunity to cherry-pick high-value consumers
following a rigorous evaluation. In markets that are just beginning, it makes
sense to acquire. Having a growing market and a high brand value can give
you the opportunity to establish a higher market share as well.
 Retention: In order to keep customers, you need to meet their needs, treat
them well, and nurture the relationship. Taking a customer's feedback and
using it to improve a product or service makes them feel like they were part
of the process. Conducting a customer feedback study can provide
actionable insights to strengthen customer relationships. Trust is
fundamental to customer retention.
 Development: A business that develops is the best choice when the market
is saturated or the pie is modest compared to the cost to acquire or retain
customers. Increasing profitability from existing clients without a new client
can increase margins even when the acquisition is expensive. Customers
are developed so that they will spend more, or have a larger share of their
wallets. Customers are encouraged to make more frequent purchases, buy
high-value products, and spend more money by using the technique.
Question 2: What is the conversion model developed by Jan Hofmeyr and in
what context would it be used?
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Consumers who are not committed to their current providers are more likely
to switch.
In addition to the pleasure of a brand or offer, the attraction of alternatives
or offers also plays a role in causing commitment.
According to Hofmeyr, customers can be divided into four categories:
entrenched, average, shallow, and convertible.
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On the basis of commitment scores, we categorize noncustomers into four
availability categories: available, ambivalent, weakly unavailable, and Very
hard to come by.
Commitment scores can provide guidance on customer acquisition
strategies.
Question 3: List five popular techniques for acquiring new consumers and
rank them in order of which technique is most likely to result in high lifetime
value customers; provide an explanation for your ordering.
 Promotion: Advertisement is a way to communicate with people who want to
buy a product or service. The main purposes of advertising are to inform, to
convince, and to remind. Educational advertising develops brand awareness,
increases the sale of products, and gives customers better information. New
products and initiatives can be announced, informing consumers about their
features and benefits.
 Promotion of sales: An approach to marketing known as selling promotion
involves creating short-term campaigns that generate interest in products,
services, and other offers for a company. In sales promotion, the main goal is
to serve as a link or a bridge between promotion, advertising, and personal
selling. It ensures that customers remain aware of the goods through
advertising. Through sales marketing, products can be sold more effectively.
Sales marketing makes the product more appealing to buyers.
 Marketing by word of mouth: In the marketing world, word-of-mouth
marketing (WOM) refers to the practice of a consumer expressing interest in
products or services in their daily conversations. It is essentially free advertising
prompted by client experiences usually, it exceeds expectations. Publicity
campaigns
and
consumer-to-consumer
and
consumer-to-marketer
communication are some of the ways companies can increase word-of-mouth
marketing. The buzz, viral, blog, emotive, and social media marketing tactics
that comprise WOM marketing are buzz, viral, blog, and social media.
 Marketing through social media: A brand's success depends on how it builds
relationships with customers and manages these channels. In addition to
affecting sales, social media is a significant influencer of brand loyalty and
connection. Due to its development and growing popularity, social media has
become a useful tool for building communities around brands, even though it
was originally created for personal use and to keep personal contacts.
 Retailing: Customer service is the key to a successful company. Retailing
philosophy dictates that the customer is king. All we do should revolve around
what your customers need. Your company should be focused on keeping them
happy. Retail marketing has become critical to modern manufacturers. In
addition to exposing companies to masses of people, retail outlets also
distribute their products widely. Our products are ultimately consumed by the
public in their stores (the ultimate consumers). We may also provide them with
marketing material and enable them to view and test products before making a
purchase decision.
 Question 4: What are the key performance indicators (KPIs) for customer
acquisition activities?
Three KPIs have been established:
1) Identifying the prospective customers to target:
A prospective customer also referred to as a prospect, is someone or something
who is interested in making a purchase and who has the financial capacity to make
such a purchase.
2) Methods of approaching the prospective customers:
Social media marketing is quite effective. Marketing through social media also
comes at a low cost. The procedure is simple and quick. And it has already started.
Connecting and interacting with the target audience is an excellent way to reach
them as well as promote your products and services. Nevertheless, many
companies fail to realize that social media should not be reduced solely to posting
and sharing content. In order to be successful on social media, one needs to have
authority within the industry, excellent networking skills, and a marketing approach
that appeals to the target audience.
3) Products and services offered to the customer: An item offered for sale on
the market is a tangible object for acquisition, consumption, or attention, but service
is an intangible, derived from the work of one or more individuals. Despite
appearances to the contrary, it isn't necessarily tangibility that distinguishes these
two concepts. The majority of services are intangible, as opposed to products,
which aren't always so. Considering that products and services are interconnected,
it's important to keep this in mind. Almost every product includes services. As an
example, when consumers buy cars, they are obliged to perform additional
services, such as tune-ups and maintenance.
Question 5: What CRM tools or software are widely used for customer
acquisition?
One of the most common CRM softwarea) HubSpot: Its cloud-based CRM helps sales teams align, facilitate sales
enablement, maximize ROI, and optimize inbound marketing strategies to produce
qualified leads.
b) Zoho CRM: The Zoho CRM Functions let us update related CRM modules or
third-party applications via simple computer scripts. If certain criteria are met, set
up the CRM so that certain functions are triggered and CRM data is updated
automatically.
c) Freshsales: Freshsales is a cloud-based customer relationship management
(CRM) system that helps organizations manage existing and potential client
relationships across multiple industries. There are many features available such as
one-click phone communication, sales management, event tracking, tracking of
sales leads, and more.
d) Salesforce: Through Salesforce, organizations are able to learn more about
and communicate with their customers via cloud-based customer relationship
management software.
e) Mailchimp: An advertiser can design, create, and share advertising campaigns
using MailChimp, a marketing automation tool. Through Mailchimp's automation
tools, potential clients can be acquired, campaigns can be A/B tested, reports can
be created, and personalized marketing can be done.
Question 6: A leading British mobile phone company publicly announced a
few years ago that it was no longer offering new customers more attractive
offers than its current customers. The promotion offers to encourage
switching were endemic in the market. How might this new policy affect
customer acquisition? Do you think it is a wise move?
This is a smart approach according to me as the corporation prefers to keep its
current clientele over attracting new ones with greater market potential. One must
consider a variety of possible issues, including possible volume losses from
existing customers as a result of death, system or service failures, or a better offer
from a competitor, things which could lead to significant financial losses for the
organization.
Question 7: Go online and research the role of online strategy in customer
acquisition. How effective is it? For which industries does it appear to have
the most value?
An internet strategy can play several roles in acquiring clients:
Search engine optimization (SEO), paid search, and pay-per-click (PPC)
campaigns.
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Managing brand and publisher reputation online: Publisher outreach,
community involvement, media warnings, and brand protection
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Several online partnership examples include affiliate marketing,
sponsorship, co-branding, and link building.
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Advertisements that target consumers behaviourally, advertise on
websites and advertise on ad networks are all examples of interactive
ads.
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Emails that have been opted in: House list emails, cobranded emails,
and advertisements in third-party newsletters are examples.
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The use of social media in marketing can take many forms, including the
management of social presence, participation of the audience, and
consumer feedback.
Current marketing conditions make it quite effective. The online method is more
useful in industries that have low-cost products that can be shipped and used
quickly. Online products that are portable and inexpensive, for example, are all sold
on the internet. Online buyers will be attracted to your product if it is reasonably
priced, quality, and available worldwide.