In today's economy, the goal of most businesses is to yield the maximum revenue. Focusing on customer acquisition strategy has become an important business imperative. When new customers are acquired, you face the challenge of
identifying and pursuing the "right" prospects who could become your best customers.
Approach for building a Customer Acquisition Model
There is a wealth of information in your current customer base, using which you can:
Identify customers who are profitable and are contributing towards your top line revenue.
Identify the customers who are not contributing significantly to your revenue.
Identify the attributes that distinguished profitable customers from the rest.
Before revisiting or designing your acquisition strategy, you must draw this intelligence from the existing customer base. You can simply segment your customers into profitable and non-profitable groups, followed
by collecting as much information as available about both the sets. This information can be collected and pieced together from internal and third party sources. Some of this data might come from interviews/surveys
Once enough data is collected about your existing customers, the next step is to build models that allow you to identify key attributes, using regression models that will differentiate your profitable customers
from the rest in their spend or profit.
How can we help?
We offer predictive analytics solutions for customer acquisition which use customer data, transaction data and campaign data to arrive at optimal acquisition strategies.
With this approach, the prospect list that you have is based on science and you will have greater success in turning them into profitable customers. Also, you can continue to improve the classifiers and regression
models by continuing to train the models with new data. This way your acquisition strategy keeps up with changes in data.