Personalization, Acquisition, Retention
To provide best practices for going from "0 personalization" to best in class and challenges faced by marketers when it comes to customer acquisition and retention.
- One of the biggest challenges to marketer when it comes to customer acquisition is the cost of advertising.
- According to Adstage, "the median cost-per-click for Facebook News Feed ads has risen from $0.43 in the second quarter of 2018, to $0.64 during the second quarter of 2019."
- The cost per acquisition has also been rising rapidly in the last several years.
- That is partially due to the fact that many of the marketing channels are somewhat unreliable.
- For instance, a study done by Power Digital marketing showed that visitors on the Facebook News Feed "spent less than a second on the site and did virtually nothing."
Differentiation and Advertising Messaging
- Another big challenge faced by marketers is the sheer volume of ads presented to the general public.
- According Market Reach, customers are presented with over 5,000 different ads per day, which makes differentiation extremely hard to achieve.
- The issue is especially relevant in the case of digital retargetting where consumers are being shown the same ad multiple times. This can lead to serious discontent and a potential for customers to switch brands.
- In fact, trust in ads has more than halved in the last 25-30 years, going from 50% favorable in the 1990s to below 25% in 2018.
- As such, it is important to always make sure that the focus of the acquisition campaign is to build trust and provide a positive experience to the potential customers.
Proposed next steps:
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As our initial research focused specifically on the challenges faced by marketers in customer acquisition, we propose to continue by identifying 3-4 additional challenges in customer acquisition and 3-4 challenges in customer retention. For each we will provide an overview of the challenge and 2-3 relevant statistics that support the challenge.
We also propose providing 2-3 best practices about how a brand can go from 0 personalization to best-in-class. For each best practice we provide what it consists of, what makes it a best practice, and 1-2 examples of brands that have implemented the best practice and become successful, including 1-2 metrics of their success. We will also detail 3-4 issues that arise due to personalization. We will discuss what the issues are, why they are considered an issues, and 1-2 solutions that can help to overcome the issue.