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Customer Relationship Management

Notes A rejection (also known simply as a “no”) by the prospective customer is the other kind of
negative response. Depending on the offer and the contact channel, you can often determine
exactly whether or not the customer is interested in the offer (for example, an offer made via
outbound telemarketing might result in a definitive “no, I’m not interested” response). Although
it probably does not seem useful, the definitive “no” response is often as valuable as the positive
response when it comes to further analysis of customer interests.

4.2.1 Traditional Approach to Customer Acquisition

The traditional approach to customer acquisition involved a marketing manager developing a
combination of mass marketing (magazine advertisements, billboards, etc.) and direct marketing
(telemarketing, mail, etc.) campaigns based on their knowledge of the particular customer base
that was being targeted. In the case of a marketing campaign trying to influence new parents to
purchase a particular brand of diapers, the mass marketing advertisements might be focused in
parenting magazines (naturally). The ads could also be placed in more mainstream publications
whose readership demographics (age, marital status, gender, etc.) were similar to those of new
parents.
In the case of traditional direct marketing, customer acquisition is relatively similar to mass
marketing. A marketing manager selects the demographics that they are interested in (which
could very well be the same characteristics used for mass market advertising), and then works
with a data vendor (sometimes known as a service bureau) to obtain lists of customers who meet
those characteristics. The service bureaus have large databases containing millions of prospective
customers that can be segmented based on specific demographic criteria (age, gender, interest in
particular subjects, etc.). To prepare for the “diapers” direct mail campaign, the marketing
manager might request a list of prospects from a service bureau. This list could contain people,
aged 18 to 30, who have recently purchased a baby stroller or crib (this information might be
collected from people who have returned warranty cards for strollers or cribs). The service
bureau will then provide the marketer with a computer file containing the names and addresses
for these customers so that the diaper company can contact these customers with their marketing
message.
New customers are the hardest and most expensive to get. You will spend more time, money
and energy attracting new customers to your business. If you are just starting a business, listen
closely, because your success here will determine whether you are in business two years from
now.
Many companies have adopted customer relationship management (CRM) systems that can
support both acquisition and retention by gathering data from every contact with prospects and
customers. Just collecting data should not be an end unto itself, however. The real focus should
be on developing a data strategy and tuning the CRM system to help your company acquire and
retain the right types of customers.

4.2.2 Customer Acquisition Strategy

Now let us discuss the strategies that affect the acquisition of customers:

Supporting Acquisition

Most acquisition marketing campaigns begin with the prospect list. A prospect list is simply a
list of customers that have been selected because they are likely to be interested in your products
or services. There are numerous companies around the world that will sell lists of customers,
often with a particular focus (for example, new parents, retired people, new car purchasers, etc.).

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