The customer acquisition rate is a measure of the rate at which new customers are added. The rate is determined by taking the number of customers at a given starting date and taking a count of the new customers added over a period of time (usually a year). The ratio of new customers added versus the starting number of customers is the acquisition rate. Customer acquisition is largely affected by marketing campaigns. Below are strategies and actions that will strengthen efforts to win new business
- Use Inbound Marketing – Outbound marketing is a term that refers to advertising. Sending out a mailer on special offers would be an example of outbound marketing. Inbound marketing refers to offering value through correspondence and building relationships over time. Sending a monthly email offering information of interest to vehicle owners would be an example of inbound marketing.
- Market to Prospects – Email addresses gathered for prospective customers should be used in marketing programs to establish and build relationships. Converting prospects to customers can have a powerful impact on the customer acquisition rate.
- Track Sources of New Customers – When business is earned and a new customer is won record the source by which they found you. It may be an advertising campaign, a referral from another customer, a search on Yelp, etc. Knowing the source of new business allows measurement of their impact.
- Evaluate Marketing Effectiveness – For a given time period the new customers gained can be evaluated by their business value and the cost of each referral source. This will yield a return on investment for each source.
- Track Reasons for Business Won – Maybe even more important than the way the new customer found you is the reason they chose to do business with you. The reasons for business won will indicate what is being done right and will highlight areas of strength. This information can be used to build more effective marketing and sales strategies.