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    Summary of Reading 2: How To Acquire Customers On The Web

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    DEEPANSHU SINGH
    The document discusses strategies for acquiring customers online. It states that businesses must ensure the total lifetime value of customers exceeds the costs of acquiring them. Effective strategies include affiliate marketing programs that incentivize website owners to promote products; strategic partnerships that efficiently direct customers; and generating positive word of mouth through various marketing programs and public relations. The optimal approach integrates both online and offline advertising avenues as well as leveraging free links and word of mouth promotion to acquire customers in a balanced, cost-effective manner.

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    Summary of Reading 2: How To Acquire Customers On The Web

    Uploaded by

    DEEPANSHU SINGH
    36 views2 pages
    The document discusses strategies for acquiring customers online. It states that businesses must ensure the total lifetime value of customers exceeds the costs of acquiring them. Effective strategies include affiliate marketing programs that incentivize website owners to promote products; strategic partnerships that efficiently direct customers; and generating positive word of mouth through various marketing programs and public relations. The optimal approach integrates both online and offline advertising avenues as well as leveraging free links and word of mouth promotion to acquire customers in a balanced, cost-effective manner.

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    A2_17_Reading_2

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    The document discusses strategies for acquiring customers online. It states that businesses must ensure the total lifetime value of customers exceeds the costs of acquiring them. Effective strategies include affiliate marketing programs that incentivize website owners to promote products; strategic partnerships that efficiently direct customers; and generating positive word of mouth through various marketing programs and public relations. The optimal approach integrates both online and offline advertising avenues as well as leveraging free links and word of mouth promotion to acquire customers in a balanced, cost-effective manner.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views2 pages

    Summary of Reading 2: How To Acquire Customers On The Web

    Uploaded by

    DEEPANSHU SINGH
    The document discusses strategies for acquiring customers online. It states that businesses must ensure the total lifetime value of customers exceeds the costs of acquiring them. Effective strategies include affiliate marketing programs that incentivize website owners to promote products; strategic partnerships that efficiently direct customers; and generating positive word of mouth through various marketing programs and public relations. The optimal approach integrates both online and offline advertising avenues as well as leveraging free links and word of mouth promotion to acquire customers in a balanced, cost-effective manner.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Summary of Reading 2: How to acquire customers on the web

    It is well know that only those business can survive where the total lifetime value of the
    customer is greater than the total cost of acquiring the customer and if it’s a vice versa for
    some company, then they aren’t profitable and often find it difficult to acquire customers
    Dependence on banner ads will not give significant benefits as the cost increases, and there
    will be more. There is no proof that it brings more business to the firms because of the
    banner ads. We need to have an Integrated strategy for the economic acquisition of
    customers
    Radio, Television, magazine Advertising
    This is the most expensive and inefficient way of serving customers. But it is the easiest way
    to do that. Achieve a broad market base. The e-tailors will take advantage of live events,
    concerts, exhibits, etc. To market their website and to communicate with customers.
    Affiliate marketing genesis of the new concept
    Started with the partnership program among two companies, in which the company look
    after the sales of the other company enabling both partners to sell more both offline and
    online. Which motivated other website owners to put links on their webpage and create
    more such partnership and this concept resulted into affiliate program. In which the
    webpage owner gives roughly 3% of the revenue from the sale back to the affiliate.
    That gave member website the inducement they needed to join the program and provided
    them with an important opportunity to make money on the internet and turns these into
    virtual commissioned sale force.
    An Integrated strategy
    As company grows, the company can move to reach potential customers in the physical
    worlds as well. It will involve investing in traditional media, targeted magazine, radio, and
    television ads avenues in which marketing expenditure and customer acquisition has never
    been and could never be as direct as internet technology allows, since these traditional
    media offer certain risk with no guarantee of sales
    On-line advertising
    While the connection between sales and advertising banners is indirect, it is a duty to
    advertise. It is the websites though. The banners are going to make the ads visible to the
    customers who show up. Interest in the product or service concerned.
    Strategic partnership
    Such exclusive deals are often more efficient than general banner ads or advertising in mass
    media for channelling customers to the company but are costly in nature
    Words of mouth
    There are no direct costs involved in word of mouth. Investments in ads (offline and offline)
    can push the word of mouth, which is very strong and brings many consumers to the
    market.
    Free links
    A company always get undue benefits from a trivial number of free links that it does not
    purchase or directly or obtain by entering a specific relationship with the site
    Public relation
    It is one important aspect where company decided what they should not do and to whom
    they should associate with to garner positive word of mouth and sales. The main of the PR is
    to generate word of mouth and sales for the company, different marketing programs have
    very different economics and by using a carefully balanced mix one can obtain all marketing
    productivity
    Conclusion
    The company will use the money to advertise on the advertising and buy customers. But it is
    going to be not easy to differentiate between customers based on the sources of
    information they receive and Concentrate the budgeting in a specific way. So, the
    integration of these strategies, initially based on the available resources will produce a good
    result and the firm can develop a specific strategy to acquire more customers.

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