What’s the Best Way to Grow? Acquiring New Customers Or Engaging Loyal Ones?
What’s the Best Way to Grow? Acquiring New Customers Or Engaging Loyal Ones?
When it comes to business advice, there’s lots of conflicting information. Every business owner is looking for ways to drive growth. But what advice should you follow?
Put the right people in the right seats.
Find new sources of revenue.
Lower your business risk.
Improve the customer experience.
Focus on customer service.
These are all critical concepts that business owners should focus on.
However, there’s one key area where you can really drive growth: acquiring new customers.
Customer Loyalty
Some experts are firmly fixed on the value of engaging customers. In fact, if you haven’t heard the adage that it “costs five times more to acquire a new customer than to retain an existing one,” you’re probably living under a marketing rock.
And while this statement may be true, it’s not a greenlight to go all in on getting existing customers to buy more from you.
Customer Acquisition
New research shows that acquiring new customers through market penetration is the most critical component that determines growth.
It also reveals that when you can attract new customers that your customer loyalty will increase as well.
How to Penetrate the Market
If your company’s growth is somewhat limited by customer loyalty strategies, what are the best ways to increase customer acquisition?
Byron Sharp, author of “How Brands Grow: What Marketers Don’t Know” outlines these strategies, along with others found in his book.
1. Focus on “light” buyers and “non-buyers” of your brand.
Sharp found that the top 20 percent of a company’s buyers actually account for as much as 50% of your sales. This goes against the grain of the saying, “80 percent of your sales come from 20 percent of your clients.”
That’s why focusing on this loyal group will only lead to 50 percent of sales. You’re missing that other critical 50 percent.
There are simply more of these buyers, non-buyers (people who haven’t purchased from you yet) and light buyers (people who aren’t considered loyal customers yet).
2. Be available mentally
Another point that Byron makes is the role that mental availability plays in the new customer’s mind.
Buyers will be more likely to buy what they can remember – both unconsciously and consciously.
So your brand needs to be easily remembered and available to as many consumers as possible in as many situations as possible.
When those consumers are ready to buy, they’ll remember your brand.
3. Prioritize reach
All of the above, mental availability and attracting light- and non-buyers, depends on reach.
Byron recommends a duplication approach.
First, target the most extensive reach medium.
Then, add another medium to your first target.
According to a study conducted by Accenture, nearly 90% of people who watch TV today have a second screen nearby or in their hand.
When consumers see something that piques their curiosity on TV, they immediately interact with that brand by swiping on their smartphone.
As a result, TV is now one of the main sources of search engine traffic.
Television can help your brand reach large and engaged audiences and help your company connect emotionally with viewers, enhancing ad memory and producing tangible results.
The exposure afforded by television helps move people down the purchase funnel, adding greater awareness and trust in your brand when they are searching and ready to purchase.
All Media Design Group specializes in custom media strategies and tactics that deliver audiences and results. Let us help you find the right platforms that will drive customer acquisition for your company.