New Customers

A few years ago I analyzed a business that was struggling with new customers (duh). Upon digging into the information, another issue revealed itself.

• The customers the brand acquired STUNK. They were lousy customers.
• The brand didn't always acquire lousy customers ... the brand changed their marketing strategy and the customers they now paid Google for were not "customers", they were "Google Users" who had a need at a point in time and Google facilitated the transaction.

This isn't the only brand that has problems. In the post-COVID era, there are all sorts of acquisition nightmares taking place. Some of this is facilitated by the easy nature of modern digital marketing. Marketers know the creative and subject lines and offers that attract customers. Marketers have NO IDEA whether the customer being attracted is worthwhile. None. Modern digital reporting is notoriously bad at helping marketers understand what they are doing.

So, let's ask a few questions. Count how many times you answer YES.

Question #1:  Do you know the percentage of new customers who purchase 2+ items in a first order?

Question #2:  On the acquisition order, do you know if your new customers prefer new merchandise more than existing merchandise?

Question #3:  On the acquisition order, do you know if your new customers prefer winning items (best sellers) over hard-to-find items?

Question #4:  On the acquisition order, do you know if your new customers prefer higher price point items than are preferred by your loyal customer base?

Question #5:  On the acquisition order, do you know if your new customers prefer full price items or discounted items?

Question #6:  Do you know if September is a better month than December to acquire a new customer?

Question #7:  Do you know how much worse customers acquired from Google/Facebook are compared to other sources, in terms of future value?

Question #8:  Do you know which merchandise category delivers new customers with the best future potential?

Question #9:  Do you know the percentage of new customers who will repurchase in the twelve-month following a first purchase?

Let's grade your efforts.

• 6+ Yes Responses = You are a very smart marketer and likely know more than most of your peers.
• 4-5 Yes Responses = You are likely an average marketer, good job!
• 2-3 Yes Responses = Talk to your analytics team and get some answers.
• 0-1 Yes Responses = Oh oh.

If you answered "Yes" to only 0-3 of the nine questions, please follow along in upcoming days because issues you have could be connected to your level of knowledge regarding the customers you are acquiring.