What can you do to create a synergistic effect in integrating the Internet channel and the traditional channels for increasing customer acquisition, customer conversion, customer retention, and customer value growth?
Before creating a synergistic effect, we must fully understand what synergistic means. Synergistic is defined as: "1: having the capacity to act in synergism synergistic drugs. 2: of, relating to, or resembling synergism a synergistic reaction" (Merriam-Webster, 2020). In addition to understanding synergistic. One must also understand the definition of synergism which is the "Interaction of discrete agencies (such as industrial firms), agents (such as drugs), or conditions such that the total effect is greater than the sum of the individual effects" (Merriam-Webster, 2020). By understanding the definitions of synergistic and synergism, we can now focus on understanding what the meaning is for each acquisition, conversion, retention, and customer value growth.
Acquisition – "A foundation goal of all marketers. In order to grow and thrive, all businesses must attract a continuing stream of new customers" (Roberts & Zahay, 2013, p. 10).
Conversion – "The process of persuading visitors, shoppers, or prospects to become actual customers" (Roberts & Zahay, 2013, p. 10).
Retention – "Involves turning the newly found customer into a loyal one who will remain with the enterprise over an extended period of time" (Roberts & Zahay, 2013, p. 10).
Customer value growth – "The equity that exists in the enterprise's customer base, is the end goal of the acquisition, conversion, and retention process. Marketers have discovered that not all customers are equally profitable" (Roberts & Zahay, 2013, p. 10).
To increase customer acquisition, conversion, retention, and value growth, the company should utilize multiple channels. With technology and the Internet, there are channels such as Facebook and Twitter among various others that can be used. Identifying the target or audience is the first step. For example, say the product is mostly used by those in their mid to late twenties, I would target that age group on social media sites. However, since I would also want to attract new customers and maybe expand the ages of the consumers, I would use a print ad in a magazine or newspaper that would lead the consumer to the company's website. The social media advertising could be like the traditional print ad, only with it being placed on the Internet, the social media advertising could be a bit more interactive, such as providing the consumer with an e-commerce link. Converting/persuading consumers to purchase the product/service, I would ensure there was a first-time customer promotion that was available through both the traditional and Internet channels. To ensure the customer was to return, not only would the first-time consumer promotion be presented, but also a returning consumer discount. By using a mix of traditional and Internet channels, the business should be able to achieve their goals.
When consumers utilize the business's website or click on one of the advertisements, the marketer can then "Track customer behavior, calculate the profitability of individual customers and improve the value of the overall customer base" (Roberts & Zahay, 2013, p. 10). Marketers can then improve the integrated channels of the marketing mix so that they can create a better synergistic effect.
References
Merriam-Webster. (2020). Merriam-Webster.com synergism. https://www.merriam-webster.com/dictionary/synergism
Merriam-Webster. (2020). Merriam-Webster.com synergistic. https://www.merriam-webster.com/dictionary/synergistic#other-words
Roberts, M. L. & Zahay, D. (2013). Internet marketing: Integrating online and offline strategies (3rd ed.). https://redshelf.com
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