UNIT-2

CUSTOMER ACQUISITION AND

RETENTION STRATEGIES
 FOCUS ON
THE
CUSTOMERS
 GROWTH CUSTOMER

By definition, a “growth customer”

is one who contributes to the
expansion objectives of the
company.
 WHO ARE GROWTH
CUSTOMERS?
 Base/existing customers
 New customers
 Customers who, through their own
progress have become larger customers
of the company
 Highly profitable customers
 Influential customers who will bring other
customers with them.
 CUSTOMER RETENTION STRATEGIES

 Invest in the relationship

 Increase trust
 Expand product line
 Cross selling
 Marketing partnerships
 Foster customer loyalty
 Improve communication
RECAP RETENTION ACTIVITIES
 Understand important factors to keep
customers
 Develop good customer database
 Implement communication strategies
specifically based on customer retention
 Develop a win/win mindset with customers
and deeply appreciate them
 Develop and implement a focused approach
to retain and grow current customers
 REACTIVEATION STRATEGIES
 Have a great list of previous customers
 Develop a communications strategy to re-
connect to them
 Tell them you want them back
 Understand why they stopped buying
 Make it right if it was wrong
 Remind them about your business
 NEW CUSTOMER
ACQUISITION STRATEGIES

 Study what was successful for you in the past

 Develop a detailed, ideal customer profile
 Test new strategies as an experiment
 Develop a specific customer target list
 Look for “best practices” regarding new
customer acquisition
 Ways to Reduce Customer Fears
 Money back
 Favorable, convenient return policies
 Warranties
 Quality statements/standards
 Sampling programs/free trials
 Customer forums
 Make contact information very visible
HOW IS YOUR BUSINESS REALLY DOING?
 Sales per square foot
 Total Net Sales / Sq ft of Selling Space = Sales per Sq Ft of
Selling Space

 Sales per transaction

 Gross Sales / Number of Transactions = Sales per Transaction

 Other Measurements
 Sales per Linear Foot of Shelf Space
 Sales by Department or Category Code
 Sales per Employee
SIX WAYS TO
INCREASE
SALES
 Six Ways to Increase Sales
1. Set up a sales incentive program
2. Encourage your sales staff to up-sell
3. Give your customers the Inside Scoop
4. Tier your customers
5. Set up a Customer Rewards Program
6. Distribute free samples to customers
 MORE ways to increase sales
 Use value-added strategies
 Focus on back-end sales
 Be proactive about referrals
 Know your competition
 Communication (AIDA method )
Awareness/Interest/Desire/Action

 Post-purchase follow-up
 Quick Tips / Checklist
 Identify exactly who you are going to sell to
 Find multiple ways to segment your customers
into more specific groups
 Segment your customer base into existing,
previous and new
 Get serious about customer retention
 Develop a customer database – keep it up
 Develop approaches to reduce customer fears
 Make ‘focus on growth’ an organizational priority
– not just owner/manager
 Your Business Revenue Growth Goals
Worksheet (available for download)
 List the 3 most important things you hope to
accomplish in each of the following time periods
regarding your revenues (90 days; this year; 3 years).
 What are the 5 most significant revenue
opportunities that face your company?
 What are the 5 most significant roadblocks to
your sales success?
 List 5 key ways you and your team will have to
evolve over the next year to position your
business to grow with your customer base.