How to attract customers in increasingly competitive markets

Markets are increasingly competitive and acquisition costs are increasingly high .

In all sectors it is necessary to attract customers, from those linked to recurring consumption, such as energy or telecommunications, to the sectors of more sporadic purchase such as leisure, hospitality or the media. Launching a business or renewing the customer base, to recover the erosion caused by competition, implies acquiring new customers and the cost of this acquisition can be between 3 and 8 times higher than maintaining existing ones .

In this article, I learn how sales analytics and digitization can improve your customer engagement results.

How to attract customers from an omnichannel perspective?

To present the right offer and message at the perfect time, it is necessary to know the different moments of the purchase process and follow an analysis strategy:

  1. The starting point  is to understand the potential customer and their needs . The service or product of the business meets the needs of its end customer and, when the target customer is a B2B business, the needs of its end customers.
  2. From a technical point of view, it is necessary to map the moments of contact , either as a passive audience (ads on the web or social networks) or with one-to-one interaction (direct marketing, telemarketing, interviews). The digitization of commercial and marketing processes are of great help because, in addition to increasing work capacity, they facilitate the traceability of results.
    This traceability makes it possible to have fundamental metrics , such as the customer acquisition cost (CAC) compared to the customer’s lifetime value (LTV) to evaluate the profitability of the acquisition action. In addition, when the customer can be impacted by several channels, the attribution rules must also be calculated. that will allow to distribute the costs and define what media and messages have contributed to the decision of the prospects.
  3. To understand how to attract customers and interact with the market and with prospects, it is essential to understand the customer’s journey , from discovering the brand to becoming a customer. In this way, it is possible to identify the different actions that can be carried out at each stage and with what degree of success, which makes it possible to define the appropriate channel for each stage and each customer segment.
  4. It is also necessary to have dashboards that will teach us how to attract customers since they allow us to visualize how prospects behave, the effectiveness of the different initiatives that are being carried out, as well as the profitability of the different commercial channels. The latter is especially relevant in non-purely digital business processes in which it is key to incorporate the impact of the human factor.

The customer acquisition funnel

One of the factors that has drastically increased competition in the markets is the development of native digital business processes, with greater dynamism and ability to reach customers. These have valued the potential of analytics in measuring results and have brought reformulations of the funnel to attract customers .  This can be divided into three main stages (TOFU, MOFU and BOFU) depending on the degree of relationship and maturity of the purchase decision.

TOFU: lead generation phase

In this first phase ( top of the funnel ), the potential customer has not interacted with the brand and, therefore, the brand does not have their data. What you can know thanks to analytics is where the most likely audience is, which prospects or potential customers will be most interested in your messages.

For example, a children’s clothing chain will share its messages in areas where fathers and mothers pass: the streets or shopping centers they pass through, the neighborhoods where this type of family is concentrated, or social networks or the media. communication that they use the most. In another case, such as the rental of vehicle fleets, the target market will be the database of companies that need mobility for their business. It is on this perimeter of companies that direct “cold” marketing actions can be carried out.

In this first phase, the message is not very personalized, the objective is to make the brand known and draw the attention of the potential customer to identify themselves. In the native digital environment we have a certain level of segmentation, thanks to SEO, SEM and ads on social networks, some of the techniques on which inbound marketing is supported . In this first phase, the objective is to ensure that commercial contact will be possible with the part of the audience that shows interest.

Much of the information to know the potential client is in the company itself. Differentiating customers by their characteristics and behavior allows us to know in which segments the brand or its competition is most present (relative density). A good analytical team allows you to define which are these key characteristics, both those related to your behavior ( cookies ) and those of your profile (age, interests, sector …).

MOFU: maturation phase of ‘leads’

In the second phase of the funnel ( middle of funnel ), the target customer has already interacted with the brand and has decided to satisfy their need, but is evaluating different options . When commercial networks are available, they record the maturity of the lead in the CRM through prospecting calls and successive commercial visits. The program advertising and marketing techniques seek inbound link generation branded by customizing messages.

The design and accessibility of the website is very important to respond to the concerns of the potential client and facilitate decision-making. The use of chatbots and other systems that exploit artificial intelligence are a good answer to provide a service that is more aligned with the customer’s need.

The results of the analytics allow us to know which prospects or potential clients are most interested in the brand’s proposal, how they decide and, therefore, at what moment and with which messages they react more positively. Using statistical packages such as Manthan or SAS, it is possible to anticipate the expected degree of response from each prospect throughout the customer journey and, therefore, the sales funnel .

BOFU: sale closing phase

In the last phase of the purchase ( bottom of the funnel ), the customer has already decided to make the purchase and is looking for the best option and the best price . Having your data to go directly to him, using assisted sales techniques, inbound sales , or programmatic advertising allow us to send the customer the price offer or the promotion that accelerates their purchase decision. The performance in real time and with a perspective Omnichannel offers agile and flexible responses to the demands of the market.

Analytics guides where to invest resources to obtain greater profitability, thanks to the design of processes that ensure the traceability of actions throughout the customer’s journey. In turn, the digitization and automation of marketing and sales processes allow adapting to market dynamics in real time, facilitating the achievement of the customer acquisition objective.