Putting the right acquisition program in place is often the difference between a business gaining a competitive edge and falling short of accomplishing its goals. With so many companies vying to earn a share of a wallet of today's consumers, organizations cannot afford to neglect the importance of generating traffic to their stores. Using innovative marketing solutions, businesses in the retail sector may be able to implement unique and valuable acquisition programs that attract more customers.
How is acquisition achieved?
According to Loyalty 360, there are several important factors that marketers must consider when putting together customer acquisition programs. For one, it's critical that the foundation of any of these strategies is customer selection, and knowing one's target audience intimately is a great way to set the organization up for ongoing success. The source stressed that companies should develop a clear picture of what their best customers look like, from their interests to the media they consume most often, so that they can tailor their efforts to resonate most readily with this particular demographic. If marketing campaigns aren't targeted, the result might be a low ROI, as well as negligible increases in traffic and acquisitions.
The source recommended doing research to determine discrete value segments, which can be used to find out which customers are of the highest value to the business. Loyalty 360 noted that marketing to these clients can have a significant impact on the number and value of acquisitions, future product and service development, and more. Most importantly, when organizations have identified individuals who are most likely to become loyal customers, they can develop truly customized acquisition, engagement and loyalty rewards programs.
Attracting customers through rewards
And rewards do figure heavily in acquisition. Consumers today have many options, so offering unique and valuable rewards is a great way to drive traffic to a retail location. In a separate article, Loyalty 360 explained that one example of company that has decided to try using deals to draw in new customers is Facebook. In 2012, the social networking site ran a campaign that offered $4 for a purchase of $1 of the site's Credits. The source explained that this method mirrored the way many cable companies acquire new customers through offering gift cards upon sign-up.
While promotions like these do result in acquisitions, they have to be leveraged carefully. ROI can sometimes suffer if businesses are providing discounts that are too expensive and limited in scope. While consumers might flock to a $200 gift card, for example, this kind of reward has a high cost per customer and won't necessarily increase traffic or loyalty over the long term. Meanwhile, incorporating a lower-cost option into an acquisition program, such as a customized savings program delivered via print, online or mobile, gives consumers the ability to save multiple times, thereby building a relationship with the brand which provided the rewards in the process. The ROI for such programs tends to be high.
Additionally, it's important to remember that offering rewards shouldn't be limited to new customers. Launching a loyalty program that provides savings on an ongoing basis is a good way to reduce churn, which could occur if the benefits of membership simply ended after the acquisition phase. Consumers are always looking for the next best thing, so businesses need to make sure that the most desirable deals can be found at their establishments. This is what fuels traffic and ROI.
Leveraging a private-label, personalized acquisition reward program that features coupons and other discounts alongside a retail promotion, from a clearance sale to a seasonal campaign, is a great way to get consumers in the door. And if these individuals are provided relevant loyalty rewards that are easy to redeem through their chosen channels, they will quickly go from being new customers to lifetime fans.