September 23, 2009

OMS: Customer Acquisition

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.


  1. derek.newman10:10 PM

    Hi Kevin,

    just a quick note to say that I got your spreadsheet - thanks.

    And I would like to say that I think this post is excellent - getting us to work on a sheet in parallel with your guidance is an excellent way for analytic newbies such as myself to comprehend your message.


  2. Very informative post. Customer acquisition is a very important of the selling process and it good to have metrics like this to measure your success.


Note: Only a member of this blog may post a comment.

Mohawk Chevrolet

Here's a little bit of levity for a Monday morning (click here) . Going forward, you might think about how marketing efforts fit on this...