Whatever the phase of your business, in the end any growth plan focuses on attracting new customers. It is important to decide how to do it, being very clear that profitability in the medium and long term will be key to success.
The plan to attract new customers is crucial for any growing company. But it is not the same to design a strategy for a business that is a startup and needs new clients to obtain income, which might rely heavily on local marketing strategies such as deploying a pop up stand outside the business premises or at an exhibition and large scale banner printing to attract attention of passers-by, and for one that has been in the market for some time, which will possibly opt to try and obtain more income from its current customers, for example, with cross-selling and improving the frequency of purchase.
There is no magic formula. What will help us grow more, diversify within our existing market or look for new external markets? It depends on the business.
To find an answer to this question, we must consider the cost of attracting new customers and the margin as a result of acquiring these new customers. Working on the margin is the most difficult thing today, so it is better to focus more on the cost of acquisition, adding an assessment of retention and recurrence, which is what gives us the real value of each client.
- The cost of attracting your customers
The first thing is to know where those customers are, so that the initial cost of uptake is as low and effective as possible. Ask yourself where your gazelles drink. If you are going to hunt and you are a lion you can search through the savannah like a madman to see if any appears or go where they are all together. With your strategy you must think the same. Analyse first where your users are and go for them.
- Diversify channels
You have to be creative when looking at where your customers are. There are many more channels than you can imagine to reach potential customers. Many traditional businesses, such as aesthetic clinics, are doing great things by capturing customers on Facebook and Twitter. And the other way around, many online companies have realised that it is much more profitable to go to physical events than to invest in online marketing. To assess the effectiveness of each channel, what you have to take into account is how much you have invested, and what volume sales are capable of giving you.
In the end, the issue is to design a strategy that is consistent with who we are as a business and how best to make our customers profitable.
For example, a travel agency that bases its sales on customer advice can’t afford physical expansion through the opening of new points of sale. The product they sell and the customer they are directed to are somewhat limited. But it can design new ways to reach customers who until now were left out due to price, for example, by offering remote assistance with less personalised attention and more economical trips, as well as trying to build loyalty with an innovative online strategy.
- Lengthen the customer life cycle
In the case of the travel agency, this cycle is extended with a predictive marketing plan that consists of creating a personalised web page for each client when designing their trip, where they can voice any doubt about the development of the trip as contracted, be in contact with the agency in case there is a setback and receive personalised offers for future destinations.
The concept: before the client actually knows where they want to travel, based on the information that the business already has on them, the destinations previously booked, the hotels, etc., the travel agency can tell the client where they should travel to, and how.
Presenting a proposal that is perfectly adapted to the client’s tastes. Advice at the point of sale will continue to be important, but it’s necessary to look for more sophisticated tools to offer a unique, differentiated and personal relationship.
If you are able to do predictive marketing, you are unbeatable from the point of view of loyalty, and will be able to keep clients coming back over and over for the benefits your business offers.