Organizing For Effective Customer Acquisition: A Study

Abstract

Customer acquisition has taken a backseat as a result of the increasing focus on client retention by scholars, consultants, and practitioners. Yet, being the initial phase of the customer life cycle, client acquisition is crucial and requires focus.Since academics, consultants, and practitioners are placing more and more emphasis on client retention, client acquisition has become less significant. However, as client acquisition is the first stage of the customer life cycle, it must be prioritized. Our research indicates that firms find it difficult to handle the client acquisition process efficiently. Less than half, for example, have a plan in place expressly for bringing in new business. One thing unites businesses that excel at attracting clients: they devote a specific percentage of their funds to these kinds of initiatives. Other criteria that have been investigated but are not associated with excellence in customer acquisition include the existence of an executive responsible for customer acquisition, understanding the economics of customer acquisition, and using CRM technologies to facilitate client acquisition. It was discovered that competence in customer acquisition was not correlated with the existence of an executive designated to oversee customer acquisition, knowledge of the economics of customer acquisition, or the use of CRM tools to facilitate client acquisition.