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