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Customer Acquisition and Reactivation During Holiday Season: 4 Key Questions Every Retailers Should ask Himself

Posted by Anne Golombek on Nov 3, 2015 11:06:13 AM
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Ginger cookies in the grocery stores and retailers having preparation stress: These are the unmistakable signs of the beginning of the Christmas season. Among all decisions that have to be made at that time by eCommerce organizations of every type and size, there typically is the one which customers should be focused on with the available resources – especially where resources are scarce. The reason for that: Customer reactivation and acquisition are expensive undertakings that do not always bear fruit as desired. Therefore, the number one rule is: Stay efficient! During reactivation, focus on the potential of strong existing customer segments and, during acquisition of new customers, pay attention to ensuring a healthy relation between costs and results.

Four key questions help you identify and use potentials in customer acquisition and reactivation – we put them together for you:

1. Who are my most loyal customers?

Your customer base is your capital: Brand loyalty and trust have been established already. Analyze product preferences and buying incentives that were successful in the past – with the right offers you can reach a high reactivation level.

2. Who are my most promising new customers?

Above-average strong new customers often have high sales potential and ideally still remember your shop as a pleasant new discovery. Use this advantageous starting position and invest in reactivation measures for this customer segment.

3. Which are my strongest acquisition channels for new customers? 

Based on the past, you know your strongest acquisition channels. Analyze these channels in relation to your targets for Christmas sales (numbers/sales/profitability/lifetime value of new customers) and build up your channel portfolio.

4. Which CLV/CPNC-ratio do I want to achieve?

To work cost-effectively, you should be clear about the Customer Lifetime Value (CLV) potential of your new customers and put it in a healthy ratio with acquisition costs (CPNC, Cost per New Customer).

If you are looking for holiday season best practices for other business areas as well, just download our free checklist with 30 things you can do to boost Christmas sales:

Christmas Checklist for Retailers

Topics: Commerce News & Insights