CVMBoK

Role of Customer acquisition team is to bring in new customers to the company by running sales and marketing campaigns.

• Provides a stream of new customers
• May cause undesirable side effects for CVM e.g.:
  • Acquires fraudulent/fake customers
  • Acquires customers that do not match value proposition (e.g. too low price attracts wrong segment which churns later)
  • Cannibalizes existing customer base or existing products (e.g. too low price causes existing customer base to cancel and resubscribe at lower price resulting in revenue decline)
  • Overpromises value for the customer which leads to unsatisfied customers and complaints later
  • etc.

Lack of alignment with Customer Acquisition team has drastic negative impact on core CVM KPIs achievement.

• CVM needs to ensure that new customer acquisition offers do not cannibalize existing revenue – cannibalization risk mitigation should be incorporated into acquisition offer design
• CVM runs new customer onboarding process
• CVM runs new customer retention initiatives
• CVM runs new customer up-sell/cross-sell initiatives

• Provides insights about acquisition campaigns results in terms of:
  • New customers on-boarding, retention and revenue KPIs
  • Impact on existing customer base retention and revenue KPIs
• Provides insights about the quality of acquired customers based on locations, channels, customer demographic, etc.
• Provides insights about the pockets of locations, channels, customer demographic, which outperform the average new customer and suggesting improvements to acquisition campaigns

Customer Acquisition ↔︎ CVM functions must closely align on:

• Pricing – to ensure balance between acquisition and cannibalization
• Segment targeting – to ensure the acquisition team has targeted and acquired customers from the right segment
• KPIs information sharing
• Capabilities to combine acquisition campaigns information with existing customer base behavior insight
• Marketing campaign investment tracking for future ROI analysis