Is Integrated Marketing The Answer To Reducing New Customer Acquisition Costs?

The goal of every company is to keep the cost of acquiring new customers as low as possible irrespective of the revenue strength involved.?  For many companies to become and remain in profit, the acquisition of new customers has to be taken down a significant level. When a company is creating $500 million each year with one or two commodities the cost of acquisition for each customer or lead could be anywhere between $1 to $50K depending on which type of business they have and the way they acquire their new customers.

For companies such as these to become profitable they need to produce more goods and up sell, or cross sell to their customers to the degree that they have no other products to put on the market. Many companies with just one or two high end core products more or less force their customers to lie dormant as they have nothing else to sell after the first few transactions. Although they probably plan to launch a new product at some point in the future which will mean they can eventually sell again to these customers, this day is, in effect, unlikely to come.

? Companies tend to move on in an attempt to acquire new customers when they really should be focusing on the ones they already have.?  The strategy is… ???Become lucrative by acquiring and expiring customers quicker without have to spend a great deal of money in the back end by generating many different product lines in order to cater for already existing customers.???

We will soon see many more companies trying to investigate integrated marketing (a mix of offline and online marketing) if the cost of acquiring new customers becomes a KEY SUCCESS FACTOR. If they are currently marketing online, they will try offline and vice versa.

? Companies using the Internet to acquire their customers are immune to this as discovering leads on the Internet is so much cheaper, they receive a speedy response, and their market campaigns are tested quickly.?  So while such companies are concentrating on getting quick online leads, the offline businesses who had previously spent vast amounts of money trying to get new customers and attempting to discover how they can cut down per customer acquisition costs, are now seeing that the Internet has proven to be a useful alternative.

? Many of the online companies have come to realize that generating content which receives higher search engine rankings will take time. Obtaining a qualified lead gets more difficult by the day as the Internet is becoming very rapid.?  This creates a lot a distraction on the Internet so these companies decide to go offline and operate in the competitive void.