//New Client Acquisition versus Retention: 7 Best Practices for Research
1555806076 new client acquisition versus retention 7 best practices for research 760x490 - New Client Acquisition versus Retention: 7 Best Practices for Research

New Client Acquisition versus Retention: 7 Best Practices for Research

 

 

Like almost all retailers, a large health and beauty organization faces increased competition and CPCs in research . The performance marketing team realizes that it can not continue to pay high costs to earn the same level of revenue from loyal customers.

At the same time, the team recognizes that it can better coordinate its strategy on other channels. Retargeting, e-mails and direct communications can work together more consistently to push customers to buy once they are in the door or back in the door, since the search.

They developed a new strategy for attacking Google ads. on the identification and treatment of new customers differently from loyal customers. The ultimate goal is to achieve more granular performance goals for new customers compared to repeat customers, with repeat customers generating a much more efficient return than in the past.

This scenario is not an isolated case. Many performance marketing teams in the retail industry want to understand how a new client model works compared to repetition. Some of the most common questions are: What should we know about this approach? What is the process to implement it? How could we measure success?

Here are some best practices.

1. Realize that the war for the wallet will be won at the top of the funnel

A new customer strategy versus an already profitable customer can make a lot of sense in the competitive climate of 'today. Here's why:

Retailers can no longer fight for the bottom of the funnel. CPCs continue to increase in direct response channels such as search. The average CPC of retailers in Google paid search (text ads) increased by 14% in 2018, to reach $ 0.71, according to the report published by Sidecar in its report Benchmarks 2019: Google Ads in Retail. The average Google Shopping CPC averages $ 0.57 in 2018, up 4%. Competition in research is at its height. Retailers place the battle at the top of the funnel because they understand the downstream benefits it provides to research clients at the research stage. Most retailers are losing ownership of their customers. Consumers have more options than ever in knowing where and when to shop. As a result, most retailers have fewer customers and need to work harder and smarter to build loyalty. With this in mind, consider this: If someone who just buys from you is looking for products that you sell using generic terms in a competitive space such as Google, is that person really your client? Or is she a prospect that you need to re-acquire at the top of the funnel?

These two achievements bear witness to the increasing importance of the upper funnel. Similarly, to acquire new customers, you have to strengthen the top of your marketing funnel. And strengthening the top, in turn, requires you to consolidate the middle and bottom of your funnel so that the outlook will shift to conversion.

2. Define What "Customer" Means for Your Business

Here is one of the biggest pitfalls facing marketers when they are developing a strategy for business. Audience: They ignore the step of defining what a customer is and how that definition translates into search campaigns.

This definition can vary greatly from one marketing service to the other. Some define a customer as any visitor who has purchased within the last six months. Others define a customer as a visitor who has purchased at any time. Still others consider a customer as a returning visitor who performs a search solely with the help of branded keywords.

Your customer definition must match the way you want to treat former buyers. This idea goes back to the idea that "most retailers are less and less owners of their customers". If someone bought from you four years ago and has not bought it since, would you still consider it a customer and treat it the same way you bought it a month ago?

Say two people bought from you yesterday. Theoretically, your brand is still fresh in their heads. But today, a buyer is looking for the types of products you are proposing using a generic term. The other client uses a trademark term. Do you consider both active customers? Or would you say you have to buy back the customer who used the generic term?

Here are some philosophical considerations to help you arrive at your definition of the client. The other factor is the data. Analyze your transaction data to identify trends in redemption rates. When is it highly unlikely that the client will come back? A month? Three months? One year? More? These results can help you know if it's a good idea to define a client based on time and set that threshold.

3. Understand the shopping path of your customers

Search is usually a new customer acquisition channel, and you can find new customers at varying costs. As you progress in search marketing, it is usually more expensive to acquire new customers.

However, if you are very familiar with the shopping journey of your customers, you ideally know that a higher cost is justified. because you can see that your other channels (e-mail, affiliates, direct, etc.) come into play to encourage customers to buy.

This understanding is closely related to your attribution model. Having a multichannel attribution model is essential to visualize performance across all channels, which also makes it a best practice in the context of a new customer vs. customer strategy.

Most retailers & # 39; the audience interacts with the brand via multiple channels. A multichannel attribution model allows you to more accurately assess the role of these channels. This knowledge can translate into crucial information to determine the size of your investment and your ROI goal, channel by channel.

4. Create campaigns that support each audience segment

Once you have defined the meaning of a customer for your business, segment your ad campaigns into depending on the number of new and previous customers. This is where features such as Search Announcement Lists (RLSA) and Customer Matches can come into play.

Here is an example of a configuration involving these features and several similar ones. Do not forget that this is only one way to slice it. You may find that a version of this approach is better suited to your business and your goals.

New and uncooked customers (prospects) – This audience is composed of uncooked buyers and never having bought. You can create this campaign without a remarketing list, but you can improve your prospecting efforts by using tools such as similar audiences, market audiences, affinity audiences, and demographic targeting. New customers: this shopping cart contains buyers who visited your site. site, but did not buy within a certain time, like the last 180 days. Create sets of remarketing lists and adjust your bids with the help of audience modifiers in Google Ads. Create lists and set modifiers based on the likelihood of user conversion (for example, cart dropouts versus returned users). The new configured bucket can also include customers who have purchased further back than your specified window (in this example, 180 days), because you might consider that this audience belongs to the "new but configured" category. includes buyers who have purchased within the last 180 days (to continue with the example). You can create this segment with a combination of customer correspondence (e-mail lists) and cooked buyers (users having landed on your order confirmation page). For even greater granularity, divide users into segments, such as long-term customers, dormant customers, or first-time buyers.

5. Set a single return goal for each audience segment

Once you have defined the categories for your audience, determine a single return goal for each audience. A good return goal should match the goals of your business and the campaign.

Furthermore, it is important to note the inherent relationship between return and income. In general, a stricter return target will limit income opportunities, and a more liberal return target will create income opportunities.

For example, you may want to target a less effective goal for prospects (cost between 30 and 45%). / sales), a similar or slightly more effective goal for the new and informed public (25 to 40% of the cost / sales) and much more efficient for the return of customers (about 5 to 10% of the cost / sales).

As a general rule, with a new client model, you should be prepared to spend more money and meet a less efficient performance goal to attract new customers. On the other hand, you should aim for a more effective goal for loyal customers because you have already invested in this audience and have determined that it was more likely to convert after buying in the past.

6. Divide each campaign according to your customers' route

Once you have defined basic campaigns for new and repeat customers, analyze your data to determine how well you are doing. there is enough volume to further segment. For example, do you still have enough data to divide each campaign by device? If you know that more users are starting their shopping trips on smartphones compared to desktops or tablets, is there any additional interest in targeting them differently?

You can also determine if you can segment by brand and brand. brand terms, or trademark and non-trademark terms. This is because the search terms, of course, reveal a terrific overview of the purchase intention.

A new customer looking for "laser printers" is probably at the top of the funnel, while a new customer looking for "a Brother HL-L2370DW printer" is further away in the # 39; funnel. If you have enough traffic on each of these two types of terms, consider segmenting them in your new customer campaign.

The same concept applies to your campaign for already registered customers. For example, if you find enough traffic between generic terms and brand or brand terms, create campaigns for each type of query.

7. Watch Out for Key Performance Indicators of Success

Here are some of the most important questions to ask when evaluating performance: Do you reach your return goals? Do new customers align with your ideal customer profile? Do you increase the number of new net customers while maintaining the same level of profit? Is the cost per conversion reduced for loyal customers?

Take the habit of making incremental adjustments every three months or so, depending on the evolution of your data.

Your growth in research will naturally stabilize off if you do not innovate. Update your view of performance and rethink the role of research in your performance marketing strategy. Determine whether your business and marketing goals are appropriate for a new client targeting model for repeat customers.

This story was published for the first time in Search Engine Land. For more information on search marketing and SEO, click here.

https://searchengineland.com/new-customer-acquisition-vs-retention-7-best-practices-for-search -315674

The opinions expressed in this article are those of the invited author and not necessarily those of Marketing Land. Associated authors are listed here .

About the Author

new client acquisition versus retention 7 best practices for research - New Client Acquisition versus Retention: 7 Best Practices for Research

Steve Costanza is Senior Business Analyst Consultant in Sidecar . It analyzes the performance of digital marketing and the strategic direction of large retailers in all sectors, with a focus on data visualization and advanced account segmentation. He is responsible for drawing the meaning of the numbers and determining how to use this information to guide marketing decision making. Steve is particularly close to Google's innovations that have an impact on shopping and paid search. He holds a Master's degree in Data Analysis and collaborates with Search Engine Land as well as Sidecar Discover Sidecar publication which covers research and ideas that shape digital marketing in retail trade.