All firms must build their customer base by acquiring customers. This chapter looks at the strategy and tactics for doing so. We start with the customer equity framework, which integrates customer acquisition, retention, and development. Key to that concept is the “acquisition curve,” which relates expenditures on customer acquisition to the number of customers acquired. We discuss strategies for increasing acquisition rates suggested by the acquisition curve, and then present and elaborate on a framework for developing customer acquisition programs.
KeywordsAcquisition Cost Reference Price Acquisition Rate Direct Marketing Customer Retention
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