How digital advertisers are navigating the subtle art of excelling at Acquisition, Retention and Transaction (A.R.T)
With the introduction of digital tools, traditional marketing, and advertising methods have altered significantly. In a multichannel environment, digital marketing technology has become critical for customer identification, attraction, and retention. Therefore, a special blend of data scientists and creative marketers has become necessary for the success of digital marketing. They incorporate data, analytics, and algorithms to effectively engage socially connected modern consumers.
The drastic increase in the presence of modern consumers on online platforms is indicative of the fact that a well-placed advertisement can do wonders for any brand. Online platforms have become crucial in influencing consumers therefore it has become important for marketers to do a detailed analysis of consumer behavior online. Till the time marketers are focused on customer loyalty and revenue, without accurate estimates, decisions regarding the best advertising interventions will remain ambiguous.
The global market for digital advertising is expected to grow at a CAGR of 10.34% from 2021 to 2031 which will be fueled by technological innovation, soaring digital ad spending and internet usage, and the widespread use of mobile phones and digital media worldwide. Strong online presence together with identification of – relevant customers, customers’ channels, and data will remain a key to excel acquisition, retention, and transaction in the marketing space. A more detailed strategy would be as follows-
Acquisition
Investment in customer acquisition strategies is important to attract the proper leads for business and improve the chances of keeping them on board for the long haul. A powerful customer acquisition strategy includes drawing leads, developing them into sales-ready leads, and turning them into customers. The marketing and customer support teams often need to work together and be aligned in order to have a successful digital acquisition strategy.
Previously acquisition strategies used conventional marketing tactics like public relations and advertising that included display ads, social media, and organic search to entice new clients. Investment in search engine optimization to use organic search, advertising on search engines, paid social marketing, sponsored posts on social media, email marketing, online events, and referral programs are the channels through which customer acquisition strategies can be executed. Local and big companies with the resources to undertake multi-city campaigns can do well using conventional advertising channels like TV, radio, and print media.
However, since customer experience is a never-ending exercise and it is something that has a continuous influence on the market, improving it has become an important acquisition strategy in present times. As long as there are forces causing change, there will be a change in CX and thus there will always be room for brands to progress.
Retention
Selling to an existing customer has a hit rate of 60-70% whereas selling to a new one has a hit rate of 5-20%, making retention a relatively more important digital marketing strategy. It is one of the major factors that determine long-term success. Like their physical counterparts, loyal online customers spend more, recommend more, and diversify their purchases into new product categories.
With disruptive technologies like AI and ML, proliferating and boosting the adoption of digital channels, data can be gathered and analyzed in a wide variety of ways to leverage retention. This aids businesses in better comprehending consumer behavior and adapting to changing needs. Technology is after all a facilitator of faster communication and execution of previously existing strategies. Important retention strategies must focus on-
Personalization of consumer experience to comprehend the choices of customers over time
Newsletters, retention surveys, relationship management, and other similar tools as effective retention strategies
- Clearly stating the benefits that customers can reap
- Adjusting and modifying online campaigns on a regular basis
- Strategies to remind customers about the existing and new services
- Tracking customer preferences and improvising accordingly
- Taking online feedbacks
- Improving the experience of the user interface
- Incentivising and re-engaging customers
- Simple actions like providing a rapid response, providing delivery updates, keeping your word, resolving client complaints, asking for feedback on the services, tactfully responding to mistakes, etc.
Transaction
Transactional marketing focuses on optimizing individual sales for efficiency and volume. Data related to it can tell about categories receiving maximum expenditure, rival loyalty, purchase channels, and more. Digital tools can assist transactional marketing by-
- Creatively influencing customers to purchase premium alternatives of existing products, complementary products, or bundled goods and products
- Offering enticing short-term offers and lucrative discounts.
Conclusion
The way we communicate and conduct business has clearly altered in today’s closely interconnected world as AI and ML take over our lives. In the context of marketing, consumers are fed up with constant exposure to pointless marketing initiatives and demand greater customization, and better experiences. Navigating the subtle art of excelling at acquisition, retention, and transaction to provide clients with pertinent information will solve such problems and pave the way for a significantly superior strategy for acquiring new customers. Likewise, digital marketing, which has evolved through time into a potent, industry-changing instrument will increase both impact and revenues for the majority of firms using technology in the present as well as future.
About the author:
Shiva Bhavani, CEO & Founder of Wing Communications