The eternal question: what’s the most effective way to acquire and retain account holders? To answer this question, let’s debunk a few “acquisition marketing myths” that could ultimately plague your ROI:
Myth 1: Daunting numbers are universal.
You already know this stat: it costs 5 times as much to attract a new customer than to keep an existing one. Often, these sort of stats exist as scare tactics. So, it’s important to view the numbers in the context of your business. Ratios certainly differ from industry to industry and don’t account for certain variables like customer service and new product innovation.
Myth 2: Bigger is better.
Some businesses put too much effort towards collecting names and addresses of potential account holders. Spending too much time obsessing over the quantity of leads can often stand in the way of focusing on who really matters: your loyal customers. It’s often best to focus on a “quality over quantity” approach built around serving the smaller group of customers who are more likely to become an evangelist for your product or service.
Myth 3: The copycat approach works.
There’s never a “one size fits all” approach to acquisition marketing, no matter the audiences. Successful companies are usually competitive because they have a unique product, service or brand offering. Every value proposition is different. So, your marketing approach should never look similar to another companies. There will always be industry best practices and tried and true design elements to utilize; but overall, just because something worked for one financial institution doesn’t mean it will equal positive results down the road for your company.
Myth 4: Audiences don’t have time for you.
Shrinking attention spans are a real thing. It’s true that consumers, especially millennials, lack the patience to read and engage with every single marketing initiative—particularly those on the longer side. But, the secret to keeping the reader’s eyeballs locked into the brand communication may just be the passion behind it. There definitely isn’t a formula to it, but it’s best to think about relevant questions like, “Would I open this?” “Would I share this?” or “Is this a chore to read?” etc. In general, it’s a good rule of thumb to imagine yourself in the reader’s shoes and go from there.
In the world of acquisition marketing, there are far fewer answers than questions. So, it’s always good to know what to focus on and what’s best to ignore. Since the cost to acquire and retain customers varies widely by product, service or industry, try not to get distracted by the latest highly discussed industry trend or “hot” social media take.
Bottom line: although marketing is a never-ending task and customer acquisition may seem like a challenge, it’s important to stay focused on your core capabilities, and ultimately, what matters most to your loyal customers. Do this, and the ROI will follow.