Marketing campaigns are developed in order to attract business. However, stating an objective as ‘attract business’ will not result in a very effective campaign. Just as it is important to clearly identify your target market, it is important to state a clear objective and target audience when defining a marketing campaign. The more focused the campaign – the better the return on investment. If the goals of a marketing effort are not stated the results cannot be measured.
On average, it costs 10 times more to generate a new customer than to maintain an existing one. So campaigns directed at existing customers should be an integral part of any marketing plan. Customer retention is ultimately value driven meaning that messages that promote the aspects of your business that the customer perceives to be the most valuable will be the most effective.
On average a customer must be exposed to an offering 9 times before a purchase is made. The likelihood that a prospective customer will make a purchase the first time they’re exposed to your business is not very high. Marketing campaigns aimed at attracting new customers will need to allow for multiple communications to achieve results. Therefore the need to advertise where the target customer shops is of the utmost importance. It’s important to know the potential audience reached, anticipated percentage of prospects that become customers, the average dollar amount of the first purchase, and the average lifetime value of a customer gained through the campaign. These factors all help determine the potential return on marketing investment.
Attrition Rates and New Customers
Like or not, all businesses lose customers. Some customers move for voluntary reasons while some are involuntary. This is a complete topic in and of itself but for purposes of this discussion the point is that a business should anticipate a certain level of turnover in its customer base. So if the number of new customers doesn’t equal or exceed the number lost then the business is declining. This measurement coupled with the cost and anticipated results of marketing campaigns aimed at new customers can result in campaign definitions that bring positive results.
The Effective Campaign
The effective campaign is focused on a specific target audience, communicates via an avenue that will reach that audience and achieves positive results in terms of the marketing investment and business generated. A marketing campaign should always highlight your competitive advantage and promote your image. The message should always communicate value to your customer.