Buzz Is Better For Bottom Line
Source: IESE School Of Business
Companies need customers, but not just any old customer - the right customer. Acquiring this choice client plays an important role in the newly emerging paradigm of customer equity. The acquisition process is particularly important for start-ups and for firms competing in growth markets. For these companies, acquisition spending eats up the biggest chunk of the marketing budget. Of course, the money should be spent in the best way possible, knowing that not all customers are profitable customers. Many Internet start-ups have learned this the hard way. Through aggressive spending, they aimed to attract what they call the "Eyeball" of potential customers, believing that browsing customers would later lock in revenue.