Planning for customer acquisition & loyalty

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Planning for customer acquisition & loyalty

  1. 1. Planning  for  Customer   Acquisition  &  Loyalty   The  Case  for  Targeting    Copyright © 2011 WaveLength Market Analytics LLC. All Rights Reserved.
  2. 2. Strategy  Reduces  Costs  Problem:  Standard  lead  generation  is  expensive  &  ineffective  Solution:  Determine  strategy  and  tactics  according  to  target  type   •  Focus  limited  customer  acquisition   budgets  on  ideal  prospects  and  markets   •  Focus  on  profitable  partners   •  Create  &  nurture  your  most  important   asset,  key  customers  in  your  installed  base   2
  3. 3. Three  Targets  for  Technology  Marketers   1.  Prospects   Educate  prospects   using  white  papers,   demos,  business   cases  &  case  studies       Brand  &  Market   Awareness  with  PR  &   advertising   3.  Current   2.  Channel  Partners   Customers   Invest  in  your   partners  through   Nurture  customer   education,   relationships  using   certifications,     post-­‐sales  tools   acceleration   programs   3
  4. 4. Customer  Acquisition  Customer  Acquisition  Requires  the  Right  Mix  of  Outbound  and  Inbound  Activities   Inbound  leads   Outbound  leads   Targeted  &   Referrals  &   focused   recommendation   Controlled  touch   &   timing   Approved  vendor   list   Controlled   message   Personal   experience   Target  multiple   personas   4
  5. 5. Lots  of  Different  Kinds  of  Leads   5
  6. 6. Demand  Gen  Challenge:  Odds  Always  Against  You…   1000  Inquiries:   (initial  response  that  results  from  outbound  marketing  program)     3.9%     39  Marketing-­‐qualified  Leads:   (Leads  that  are  ready  for  sales  to  work)       2.3%   22.7  Sales-­‐accepted  Leads:      (Leads  that  sales  works  within  given  timeframe)     1.1%     11.6  Sales-­‐qualified  Leads:   (Leads  that  evolve  into  opportunities  that  are  “pipeline  quality”)     .26%   2.57  Closed  Sales   6
  7. 7. Outbound  Conversion  Customer Acquisition Requires the Right Mix of Outbound and Inbound Activities Marketing makes this happen 7
  8. 8. Comparison  of  Approaches   NEW  Approach   Standard  eDM  Approach  List  size  required-­‐  based  on  2%   1800  names   50,000  names  response  rate  Cost  per  name  for  1-­‐time  rental   —   .90    Total  list  rental  fees   —   $45,000  1  inside  sales  rep  to  qualify  leads   12.5  days  @  $320/day  or  $4.57/call  =  a   —  based  on  80  calls  per  day   total  of  4000.00  Our  program   $32,000   —  Sales-­‐accepted  leads   99   22.7  Cost  per  qualified  sales  lead   $323.23   $2,158.75   Total  Costs   $32,000   $49,000   8 8
  9. 9. Cost-­‐effective  &  Successful  Customer  Acquisition  Starts  with  Focus     Find  your  Ideal  Prospects   • Build-­‐to-­‐own  list  for  focused  nurturing   • Your  ideal  prospects  and  segments  where  you  can   be  most  successful   FOCUS   • Apply  to  your  company’s  specifics  strengths  in   the  marketplace   • Create  custom  list  of  300  to  800  organizations  to   nurture   Fewer  High  Quality  Leads   • Eliminate  expensive  list  rental  fees   • Reduce  demand  generation  costs!   9
  10. 10. The  Importance  of  Targeting  Current  Customers   Average  company  loses  half   New  customers  cost  5x   its  customers  within  five   more  than  retaining  current   years     ones   Nurture  Current   Customers!   A  2%  increase  in  customer   A  business  is  2x  more  likely   retention  has  same  effect   to  sell  to  a  lost  customer   on  profits  as  cutting  costs   than  brand  new  prospect   by  10%.   CMO  council  survey,  January  2006     10  
  11. 11. Quantity  Leads  to  Quality  It  takes  a  whole  lot  of  leads  to  get  to  a  few  sales:     •  Make  sure  you’re  targeting  the  right   prospects.   •  Inbound  leads  are  ideal,  but  hard  to   control…have  a  strong  outbound  plan  in   order  to  see  growth.   •  Treat  your  installed  base  like  solid  gold… it’ll  be  worth  it.   11
  12. 12. WaveLength  Market  Analytics  2680  Bayshore  Parkway  Suite  212  Mountain  View,  CA  94043  Office:  415.519.7030  info@wlanalytics.com    

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