The executive-level goal of your marketing should be to secure at least one marketing channel that regularly brings you buying customers. This is your foundational channel. You can and should experiment with new channels too, but those are only experiments to see if you can get the channel to stabilize and produce that regular flow …
Tag: customer acquisition
What kind of a payback period should paid acquisition target?
When running paid acquisition campaigns like Google Ads, you should be targeting a payback period. That means, on average a customer has paid back their acquisition costs by a certain point of time. Basically you want to know at what point a customer has produced enough profit to pay for the advertising that attracted them. …
Better data from Shopify means better channel analysis
When I launched acquisition source tracking for Repeat Customer Insights, I had to rely on the order sources and sales channels self-identifying themselves. Meaning Shopify’s online store used web, their point of sale used pos, and a handful of apps used the name of their app like Bold Checkout or Excelify. Every other order source …
The grass of customer acquisition
Just about everyone who researches the effectiveness of returning customers vs new customers comes to the same conclusion: Repeat customers are better in almost every way. So why is so much more attention given to acquiring new customers? I can understand the volume argument, the “my repeat customers aren’t enough to keep my business going …
Breaking down customer acquisition sources for each cohort
Knowing where customers come from is important for customer analysis. When you know which sources create quality customers, you can shift more resources to them and away from low-quality sources. Repeat Customer Insights will now analyze and breakdown which acquisition sources lead to customers on a per-cohort basis. This will help answer the questions “where …
Spot customer acquisition issues with the Customer Grid and RFM
Comparing the Customer Grids in Repeat Customer Insights can help you spot customer acquisition issues. The New and Promising New segments include customers who have only purchased one time. Their main difference is how recently they purchased. Comparing them month-to-month, you’ll want to check their counts. If the counts are increasing, you’re acquiring more new …
Comparing sales channels for repeat customer acquisition
Knowing how sales channels perform is a key measurement to know where you focus your efforts. Raw sales and order values are nice, but if you have repeat customers those can be tricky. If a customer first buys through your POS system and then later buys from your online store, is the POS or the …
Even the best marketers forget about retention
Savvy marketers will calculate their Customer Acquisition Cost (CAC) to make sure they are acquiring customers cheaply enough to turn a profit. Most of that goes towards upfront costs like advertising or paid deals, leaving very little to actually retain a customer. Which is silly because retaining the customer will boost how much they spend …
Spend more on retaining your existing customers
Many stores spend a lot of resources on customer acquisition. How much does it cost on average? What about an online store customer vs POS vs Facebook? Does it increase over time or stay within a band of costs? But acquisition costs are only part of the picture. You’ll want to look past the first …
How customer behavior in one sales channel can impact your other channels
Where a customer first buys matters a lot. If a customer buys in-store while you were running a closeout sale, that’s different than if they bought online during the same sale. The sale probably attracted both customers, one to walk-in and one to click. The in-person customer would had have to be physically in your …