4 Tactics to Consider When Developing Your Acquisition Strategy

Here are 4 super effective methods to feed your lead monster:

1. Just ask them to sign up for free!

 
Simply asking customers and non buyers to join your Loyalty Program or receive your newsletter is very cost effective. The problem with this tactic though is that it generally doesn’t strongly appeal to a customers’ basic instinct – looking for a bargain. So, although there is no acquisition cost, participation rates are likely to be much lower.

 

For many specialty retailers this tactic may appeal, but you should consider a few things when using this tactic:

 
• Although those who sign up are likely to be quite interested in engaging with you this way, many more won’t, because they’ll see this as just more emails cluttering up their inboxes … notwithstanding all the ‘cool’ discounts and ‘special’ offers you say they’ll receive in the future.

• Another challenge with this approach is that it generally doesn’t reach past those customers you see at the cash register.

 

2. Offering Discounts on the Next Purchase

This tactic entails providing a future discount on a customer’s next purchase or receiving a particular item such as a gift card. This can be a good tactic as you’re providing a reward for ‘signing up’, but you need to be careful about the cost.

Let’s say you’re offering a 10% discount off their next purchases your incentive. Would you be happy if their next purchase was $1,000, costing you $100 for their contact details? Okay, we’ll fix that by putting conditions on what they can buy to restrict your likely outlay; now they can only use their discount on items up to $50. Oh, and does that restriction include ‘non sale’ items too? Walking in your customers’ shoes for a moment, you might be more interested than just signing up with no incentive; however, are there too many conditions and restrictions – isn’t it just too hard?

3. Cross-Sell Opportunities With Other Brands or Stores!

If your operation is part of a much larger group that operates other retail stores, providing discounts to other stores within the group can work very well in acquiring customer details and also driving traffic to your group’s other stores.

Once the cost of acquiring a customer’s contact details across the group has been determined, you should consider what cost would be acceptable to drive traffic between stores. A 10% discount even for a high ticket can be effective because you could be achieving 2 sales for the group. And, if the customer didn’t use the discount for the other store, acquiring their details didn’t cost anything.

If you own a single shop, you can use this tactic by working with other non-competitor retailers who share your customer demographic. This can be very cost effective and can still be applied to non buyers, because whether they use the discount offering or not you’ve still acquired their contact details for nothing.

Competition Draws have a lot of appeal for customers, and if done well, retailers too!

4. Unleash a Contest!

One of the best ways to capture contact details from customers and non buyers alike is to invite everyone that walks into your store an opportunity to win something for nothing. Aside from appealing to their desire to get a bargain, it also provides customers and non buyers with a larger ‘perceived’ incentive to offset the ‘pain’ of parting with their contact details.

Of course, not everyone will enter a contest but you’ll capture many more customers, and non buyers, this way than most other tactics. And, you still have another opportunity at the cash register to offer those buyers (and high value customers) another incentive, if necessary, to provide you with their contact details.

Some considerations in conducting competition draws you need to think about are:

• Having a prize of sufficient value and appeal to attract the attention of everyone that walks into your store. When choosing a prize for your competition, you’ll need to consider the demographic and psychographic profile of your customers to find a prize with the broadest appeal. It doesn’t make much sense to offer something up as a prize if it doesn’t have broad appeal, does it?

What can you afford? Successful competitions are heavily promoted in and out of the store, leveraging existing advertising materials and channels to drive greater participation. The higher the participation rate, the lower the acquisition cost, because you’re spreading fixed costs across greater numbers of customer contact details.

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