At the tactical level, driving customer acquisition is about messaging and channel selection. Crafting your messaging (Design & Copy) and your USP (Unique Selling Proposition) comes first and with the average person being exposed to over 8,000 marketing messages a day, your messaging needs to be impactful, succinct, single minded, clear and relevant. You don’t get a second chance to make a first impression.
The Bullseye Framework will enable you to focus and prioritize your efforts and unearth the channels that delivers growth. The Bullseye Framework identifies your optimal channels using a five-step process: Brainstorm, Rank, Prioritize, Test and Focus which helps you to systematically uncover strategies for delivering exceptional growth.
With over 35 Channels to choose from, multi-devise usage, and up to 98% of users not purchasing on their first visit, ascertaining an accurate and continually improving ROI from your marketing campaigns can be challenging, but thanks to Attribution Modelling, you could realise a 15%-44% increase in marketing ROI (Windsor.ai).
An Attribution Model is a set of rules, that determines how sales/conversions are assigned to touchpoints during the customer journey. A touchpoint is an exposure to any marketing channel however, each company has a different number of touches (average B2C & B2B: 8.3 & 7.9, Forrester). There are numerous Attribution Models available however, a Custom Attribution Model yields the best results.
Assigning proper credit to each channel allows you to boost ROI, predict revenue and plan what efforts to scale next. With previous experience installing and operating Attribution Models, DavinDigital can continually improve and optimize marketing performance through more efficient budget allocation that delivers greater campaign ROI.
The key acquisition metric to track is the LTV (Lifetime Value) to CAC (Customer Acquisition Cost) Ratio. Cashflow dependant, the absolute cost is not as relevant, as the ratio. A good rule of thumb is 3:1 with an expected payback period of less than 12 months. The shorter your payback period, the lower the working capital requirements and the faster you can grow your business.
Championed by the likes of, Facebook, Airbnb, Uber, LinkedIn and Dropbox, Growth Hacking is a process of rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. It is a systematic, replicable, scientific process executed by a specifically appointed, cross-functional and collaborative Growth Team (marketing, sales, analytics, engineering, and product management).
One such system, developed by Brian Balfour, one of Silicon Valley’s top Growth Hackers follows a 5-step loop for Growth Hackers to run experiments efficiently.
The 5-step framework includes:
Growth Hacking is not just limited to traditional marketing communications that drive traffic, but also can be applied to the conversion funnel and to retention, and referral activities. The more experiments you run, the more successful your growth initiatives will be. Adept at building Growth Teams” and installing “Growth Hacking” structure, system and process, DavinDigital can establish an unstoppable growth engine that could effectively 10x your growth over the long-term.
Acquisition grows your customer base, but it is Churn that kills Lifetime Value (LTV). Growing customer retention, (the inverse of churn), by only 5% increases a company’s profits by 25-95% (Bain & Co) and also equates to a higher success rate in selling to existing customers; 60-70% verses 5-20% for new customers. Furthermore, it can cost up to 5 times more to acquire a new customer than to keep an existing one. Retention is the secret sauce that drives a successful business.
Managing and reducing churn starts with appointing a dedicated individual or team, to prepare the Retention Strategy, laying down churn/retention KPI metrics, ring-fencing devoted ROI focused marketing budget and conducting “Customer Cohort Analysis” to track monthly retention rates & revenue expansion.
With a monthly churn rate of just 5%, you are losing almost 50% of your customers annually. Churn is the silent killer of your business and therefore, retention needs to play a pivotal role within your overall marketing strategy.