Personalization Glossary
A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!
Customer Acquisition
The process by which new customers are gained for business or converting existing prospects into new customers. Simply putting together customer acquisition refers to gaining new customers. Acquiring new customers involves persuading customers to purchase a company’s products and/or services.
Companies consider the cost of customer acquisition as an important measure in evaluating how much value customers bring to their businesses. For example, a new customer may have been acquired via a retargeting campaign based on previous browsing history, through a special discount touted in a social media post, or even through personalized email recommendations.
In addition, there are numerous tactics retailers can follow. Though, as the cost of customer acquisition rises, it’s put serious pressure on marketers to better understand the impact of their efforts and channels used, as well as the quality and LTV of their customers.
Customer acquisition techniques change with technological changes. There is always a need to optimize and upgrade the traditional ways of marketing channels available. Exploring new methods to entertain customers is important to remain in the competition and have a high customer acquisition rate.
Improving customer acquisition is the primary challenge that an organization faces. Hence it is important to identify critical approaches to enhance customer acquisition power. This includes acquiring more customers at a low cost. One of the best strategies to acquire new customers is to perform promotional campaigns. These campaigns should be efficient and well-targeted to customers.
Encouragement of customer referrals can also attract new customers. It is always cost-free advocacy by customers to provide referrals when they feel satisfied and encouraged and when they have a healthy relationship with customers. These referrals or customer’s reference to other customers act like a piece of cake for the organization as there is no cost involved in this.
To maintain a high ROI and a low cost of acquisition, while reducing the risk of churn, companies should look towards data for actionable insights that inform their methodologies and future campaigns.
Check out how Vue helps you with retail personalization