Customer Acquisition: The Bare Basics
This is also relevant to Buy Pages that are leading to a Freemium or F2P model of buying, a brief explanation of which can be found below...
- Online apps and services often use the freemium model of buying as a means to acquire new customers. Within the freemium framework there are two types of schemes:
1) Enter payment details before a free trial. When the free trial ends, you automatically become a paying customer. This has better conversion rates than the second type of scheme for obvious reasons.
2) Enter payment details after the free-trial. This means that the product has to be very strong to make people go consciously back to the site and put the effort into paying for it.
- Analytics and information mining are a necessary part of determining your customer profile. This will allow you to more efficiently target to niche groups that have a higher chance of buying your product. This hyper-targeted marketing is sometimes called 'The Economy of Bob' as it concerns the individual, not large swathes of the population.
- Email marketing conversion rates are typically very low. The industry average is about
a) Open rate (customers who open the email in their inbox) - 15%
b) Click-through rate (customers who open and follow up links from the email) - 2%
- The advantages of social media marketing (such as Via FB, Twitter and now even Instagram)
HIGHER: Conversion rates.
LOWER: Costs, but also VOLUMES of traffic.
Common means of customer acquisition:
- Free Trials
- Community events (think Google Hangouts, Twitter Q&As)
- Additional paying content
- Bundles with other services or software
- Partnerships with other relevant companies.
KEYWORDS: Landing page, pitch page, buy page, freemium, free-to-play (F2P), Information mining, economy of Bob, acquisition channels, conversion rate (Open + click thru), hypertargeting.