If you haven't received your copy of a sample Online Marketing Simulation worksheet and wish to follow along on these examples, go ahead and send me an e-mail message and I'll forward you a copy.
In our example, we estimated that this business needs a 17% increase in customer retention, in order for the business to improve.
What about customer acquisition?
In the spreadsheet, change cells C6 - G6 from a value of 1.00 to a value of 1.70.
Notice that the business stabilizes when customer acquisition activities drive a 70% increase in new customers.
This doesn't even seem feasible, does it? I mean, how the heck would you improve customer acquisition activities by 70%?
In upcoming posts, we'll explore how to investigate which customer acquisition segments can contribute high-value customers. We'll introduce the concept of the "MVP", the "Most Valuable Path" that a customer follows from new customer to great customer. We'll better understand what drives this business, and what holds back this business. You'll be able to take the concepts and apply them to your business.