Acquiring a new customer is an integral part of your business. But feeding customers from scratch can be costly and a headache for many. Here are four steps to get new customers and tips for reducing costs.
Huge costs of acquiring a new customer
Retaining new customers requires a significant amount of money compared to retaining existing customers. Even if you want to increase sales efficiently with limited resources (people, things, time, money), the difficulty of winning it increases year after year, which is also annoying for companies.
1-5″ and “5-25 Rules”
It is said to cost five times as many to get new customers as existing customers. This is called a one-to-five rule, and new customers are typically considered to have lower rates of return than existing customers.
On the other hand, the law insists on keeping existing customers “5 to 25 rules”. That said, if you’ve increased the customer consumption rate by 5 percent, you can expect a profit improvement of at least 25 percent. Both rules were found by Bain & Company, a leading American consulting firm, and are used in a variety of business strategies
In order to acquire new customers, it is important to have a significant budget and work according to the intentions of existing customers. Let’s take a look at what’s made it difficult to get new customers and the steps to catch them.
Ad cost is one of the biggest cost factors for new customers. TV commercials, newspapers, magazines and internet ads may be seen by an unspecified number of customers, but they are actually costly.
There are several types of advertising methods, such as direct, PR strategies, and web marketing shown by SEO actions, so you need to find the way you can approach your customers most efficiently.
Increasing difficulty in product dimitation
There have been many mature markets in recent years, and competition for products has intensified due to declining populations. Making a profit is simply difficult with product specifications, price, and brand strength, and it is thought that the difficulty of getting new customers is increasing accordingly.
In addition, the development of the Internet has made it possible for customers to collect information in a variety of ways. It’s easy to get a lot of information and compare it to competition. As a result, simply running commercials or jumping to sell those that make it difficult to get new customers.
3 Steps to Getting New Customers
So what are you actually doing to get new customers?
Survey, find customers
Identify the customer first. You need to determine the industry and size to reach and collect corporate information. Find the industry that needs the product and decide which company/customer to close. You can achieve efficient sales by setting rules and determining customers for cost efficiency, such as lowering the priority of customers who have strong relationships with competitors and have fewer contacts.
Customer approaches include marketing using tools such as dive sales, remote appointments, and marketing automation. The key to increasing new customer acquisition is how you take a complex approach depending on your client’s budget and features.
Increased purchasing incentives
Few customers decide to buy just by talking once. Motivate your customers through an ongoing approach, including regular visits and sales emails after appointments. This may be an opportunity for customers interested in understanding customer requests and concerns, and publishing not only sales force information but also information requested by customers.
Key points to reduce the cost of acquiring a new customer
Getting new customers is costly, but we want to reduce costs as much as possible. What should I be aware of?
Attacking a list of customers from one end takes time to get close to customers who are less likely to receive it. First, it is important to analyze customer information and approach customers who are highly compliant with your company.
Centralizing and managing information
When customer information and customer records are closely broken, it can be frustrating for sales staff to collect different information when visiting customers. Also, referring to customer information from the same industry is inefficient unless information is available in one place. Leveraged marketing automation for customer information management.
Reduce sales time
If each person takes time to collect information and enter information into Excel or daily reports, the number of customers they can approach is limited. Reduce time and reach more accessible customers with reliable information and easy-to-use tools.
Set a goal first, measure its effectiveness on that goal and run the PDCA cycle as soon as possible. By going through the PDCA cycle, you can clarify your goals and make future issues easier to understand. However, the PDCA cycle repeats the following four steps.
Planning: Set goals and create action plans to achieve them. Run: The step you want to run the target or action plan specified in the plan. Check (ranking): The stage that assesses whether a set target and action plan has been achieved as a result of the implementation. Action (improvement): Step in considering points to improve evaluation and analysis results by checking.
In addition, the following four points are important for effective implementation of the PDCA cycle:
• Use specific numbers to determine goals and plan as accurately as possible.
• Implemented as planned.
• Create a logical program.
• Regular evaluation and approval.
Leverage of customer management systems
The customer management system centrally manages customer information collected in the past in one place, so that it can be easily shared between the parties that need it, regardless of the section they belong to. In addition, you can analyze centrally managed data and visualize problems from multiple perspectives. Perform high-speed PDCA cycles by analyzing and visualizing real-time information using the system.