So, it turns out that, apart from followers who are curious about the music industry, many of you reading my posts are actually young, and thriving entrepreneurs like me. For that reason, I decided to prepare a topic just for you. I will be sure to keep you in mind for future posts as I am very much looking forward to sharing my perspectives and experiences with you.
Today, I’ll be talking about acquisition, conversion, and retention.
∎ Acquisition vs conversion
Acquisition strategies are broad action plans. Acquisition happens when a firm attracts attention to its products but the customer doesn’t commit yet. For example, when Apple Music allows people to stream music free for the first three months, it’s their way of acquiring users.
On the other hand, conversion strategies are narrower in scope. It’s when a company effectively gets potential customers to become regular clients. For example, H&M often promotes its products by giving out coupons, which encourages users to keep coming back (acquisition). A conversion is usually confirmed after a client makes three purchases. In the Apple example above, conversion takes place when a free user subscribes and starts paying for the service. As you probably realize, acquisition and conversion tactics vary from business to business.
I’ll go more in depth below…
Ways of acquisition
- Signup forms
- Viral & Referral Marketing
- Content Marketing
- Social Media
Things to review when going after conversions
- Site performance
- Customer retention rate
- Purchasing process
- Abandonment Rate
∎ Finally, let’s talk a little about retention. Retention is the company’s ability to keep converted clients hooked. Adding more value to products and services ensures customers keep coming back. Sears, for instance, uses the Shop Your Way Rewards program to promote customer loyalty. Shoppers earn points on purchases and can later redeem them, but they have to keep coming back in order to build up enough points.
A few tips on retention
- Use positive social proof
- Share latest company stories and news
- Reward loyal advocates
- Use words they love to hear
I hope you learned something from this article. I must admit, I don’t have it all figured out as yet (far from it). In fact, it’s possible I might look back at this post a few years from now and cringe, ha! I’m still young and there’s lots more left for me to learn. But we can all agree (including my older self) that once you figure out where your weaknesses lie, as well as the things you’re doing wrong, and start creating a plan to fix them today, the results will be more than worth it.
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