{"id":538,"date":"2019-09-27T17:31:16","date_gmt":"2019-09-27T14:31:16","guid":{"rendered":"https:\/\/chatra.io\/blog\/?p=538"},"modified":"2024-06-27T18:18:06","modified_gmt":"2024-06-27T15:18:06","slug":"what-road-to-follow-customer-acquisition-vs-customer-retention","status":"publish","type":"post","link":"https:\/\/chatra.com\/blog\/what-road-to-follow-customer-acquisition-vs-customer-retention\/","title":{"rendered":"What Road to Follow: Customer Acquisition vs. Customer Retention"},"content":{"rendered":"

This is a guest post from\u00a0Daniel Bishop.<\/p><\/blockquote>\n

The success of your business venture is directly tied to your ability to acquire and retain customers. The more people you sell to, the more renown you will gather for your brand. Likewise, maintaining a long-term relationship with your existing customers will provide you with a reliable stream of revenue.<\/span><\/p>\n

However, it is not always feasible to devote equal attention to both of these activities. Some businesses will tend to focus more on customer acquisition, whereas others will <\/span>concentrate their efforts on customer retention<\/span><\/a>. The question then becomes, if you had to choose one approach over the other, which one should you pick?<\/span><\/p>\n

Various arguments have been proposed in favor of each side, but finding a clear-cut answer has been proven somewhat difficult. What works for one business might be less effective for another, which means you can\u2019t just mimic what others are doing and hope to succeed. What you have to do instead is to examine both approaches, and try to understand their respective pros and cons.<\/span><\/p>\n

Unfortunately, most articles on the topic you can find online have a clear bias towards one of the two options. What is lacking is a balanced overview of the two sides, so we\u2019ve decided to write one from scratch. Keep reading, and find an approach that works for your business.<\/span><\/p>\n

Acquisition-focused Approach<\/span><\/h2>\n

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Source: papersowl.com<\/a><\/span><\/em><\/p>\n

Customer acquisition represents a systematic effort to gather new customers. The process of acquisition has two main phases. The first phase involves generating interest in what your company offers via various marketing techniques, such as<\/span> generating customer reviews and word-of-mouth<\/span><\/a>, paid advertising or cold calling . And in the second phase, promising leads are converted into paying customers. Marketing and salespeople are usually the ones tasked with designing customer acquisition strategies, as well as implementing them.<\/span><\/p>\n

The main benefit of an acquisition-focused approach in customer relations is the fact that it can be performed on a large scale with comparatively little investment. This is mostly thanks to recent advancements in digital marketing technology, specifically marketing automation. It is now easier than ever to put marketing content in front of a global audience \u2013 all you need is a website, a social media profile, and an email list, and you can let the software do the rest.<\/span><\/p>\n

By using customer acquisition, your company can discover new selling opportunities. This is especially true if you\u2019re bringing a new kind of product or service to the table. If you did your <\/span>customer research<\/span><\/a> right, simply spreading the word online about your offer will be enough to get people interested. Not all of them will end up buying your product, but if you cast a wide enough net, statistics will work in your favor.<\/span><\/p>\n

One of the downsides of pursuing customer acquisition above all else is the fact that consumer interest tends to be fickle. You might succeed in your first wave of marketing outreach, but rival companies will catch on to the fact that there\u2019s money to be made in your industry niche, and they will start offering similar services.<\/span><\/p>\n

Retention-focused Approach<\/span><\/h2>\n

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Source:<\/span>www.superoffice.com<\/span><\/a><\/em><\/p>\n

Customer retention is concerned with keeping your existing customers involved with your business. The idea is that if you keep customers engaged, they will be more likely to buy from you in the future. In order to drive repeat purchases from customers, your company has to <\/span>provide a stellar customer experience<\/span><\/a>. This is usually achieved through a combination of customer service, customer support, customer care, and customer success.<\/span><\/p>\n

There is no one-size-fits-all approach to customer retention. Instead, there is a variety of methods that can help you leave a positive impression on customers, such as:<\/span><\/p>\n