Why is it important for the marketer to distinguish between customer acquisition, conversion, and retention when developing marketing strategies?
These are three different terms used while developing the marketing strategies.
Customer acquisition tells us how do we reach out to customers and acquire new customers. It basically tells us the traffic towards our products at a particular time in the market. But, is it enough to see if we want to develop good marketing strategies? No !
Conversion shows us how many of the customers whom we could acquire or attract toward our products, actually end up buying our products. So, while acquisition tells us the rough numbers, our success and profits have more to do with the conversion. Thus, while framing the marketing strategies, it becomes very important that we focus on conversion of the customers.
Lastly, is conversion enough? What about the future plans for a customer who already bought one of your products? Thus, to keep the conversion rate high in the future, it is important that the marketers focus not only on attracting new customers and making them buy but also to retain the customer base that we already have.