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How to attract new customers in an evolving market

New customers are the key to business growth and expansion, without them many budding companies would fail to bridge the gap between early success and long-term growth. Of course it is also important to look after your existing customers and ensure that they remain loyal to your brand.

However, in the modern-day customers are becoming more and more fickle and more likely to stray away. With that in mind many businesses (rightly so) take an attractional approach to customer acquisition. Unfortunately it’s not as simple as throwing money and resources at the problem, there are times when a nuanced approach is needed.

In this article we take a look at some of the interesting ways that a myriad of companies target new customers.

1. Naked/Majestic Wines – Affiliate Vouchers

In 2014 Naked Wine and Majestic Wine merged together to create a ‘super company’ in the British wine market. Naked were the brainchild of Rowan Gormley and operated solely in the remote sector, whereas Majestic were a bricks and mortar staple of the high-street.

Together the two companies still operate in the same orbits as before but they have an identical approach to new customer acquisition. As the online branch Naked Wines seek to attract new customers through affiliate voucher programmes.

The company are not simply looking for as many new customers as possible, they are looking for the right demographic for their company. As such Naked have teamed up with similar subscription services such as Hello Fresh, Simply Cook and Beer52 to exchange vouchers.

In a reciprocal agreement all deliveries made by the three aforementioned companies are accompanied by new customer offers for Naked Wines. The only requirement of Naked is that they send vouchers for the other companies with their deliveries.

It’s a cost-effective way to target customers who should be interested in Naked’s offering. Similarly, Majestic Wine, the bricks and mortar branch of the company, offer reciprocal voucher programmes with a wide selection of businesses.

All 200+ store managers of Majestic Wine branches are encouraged to venture out into their local area in order to seek out partnerships with local businesses. Typically managers will target cheese shops, independent delis and butchers.

On average the company spends £100 on every new customer which may seem like a lot of money, but it is a relatively low figure compared to some major retailers.

2. Wink Slots – Introductory offers

The online gambling industry in the United Kingdom is incredibly lucrative at the moment but it is also incredibly crowded. With annual revenues of over £5 billion there is money to be made but it’s hard for businesses to stand out from the crowd.

Wink Slots are just one of thousands of online slots sites operating in the UK and vying for a piece of the action. The marketing buffs behind Wink Slots take a more traditional approach to customer acquisition than many other online providers and their approach is one that seems to work.

Through both internal and external advertising campaigns Wink Slots offer favourable offers and deals to new sign-ups to their site. Typically, a new customer will be entitled to a minimum of 30 free spins on their site with no additional deposit required.

Seasonally these offers change in their nature and specifications, but they still represent great value to customers as they do not require a deposit. Many other online providers offer seemingly more attractive deals with minimum wagers, deposits and plays hidden deep within the terms and conditions.

Of course Wink Slots no deposit guarantee is open to abuse by seasoned online gamblers looking to make a quick buck. But it is the type of offer that in the main attracts customers who will remain loyal to the brand.

3. H&M – Influencers

Fast-fashion retailer H&M may not be the biggest name on the British high street but they are one of the savviest in terms of online marketing. The company employ a range of influencers from those with a few thousand followers to those with millions of followers and subscribers.

In partnership with small-scale influencer H&M will offer free or discounted clothes in exchange for favourable reviews on social media sites such as YouTube and Instagram. In doing this they reach their specific target demographic with adverts that new customers will find engaging and trustworthy.

(Although it has now run its course, the influencer affiliation between H&M and The Weeknd was beneficial for both parties.)

Recently H&M teamed up with The Weeknd in a social media power move that reaped enormous marketing benefits. The company dedicated a full-page Instagram spread to promote their affiliation with the singer along with a series of sponsored posts.

The singer represented H&M’s ideal customer; young, trendy and fashion focused. The influencer affiliation with The Weeknd appears to have been successful with every social media post linked between the two exceeding 50,000 likes each.

4. Referral Marketing – Bulb

The energy market in the UK has come under scrutiny in recent years with several of the biggest providers receiving warnings from governing bodies for not passing on savings to customers. As such, trust in the big names has significantly fallen, leaving a void which has been filled by trustworthy providers like Bulb.

Bulb appeal to their customers by promising an eco-friendly approach to their business and whilst they may not always be the best price-wise, they are the best trust-wise. Their website is simple and effective and has one unique feature that helps to keep existing customers loyal whilst attracting new ones at the same time.

Bulb actively encourage their new customers to refer their friends and encourage them to switch over. For every friend that the user brings over to Bulb they will be rewarded with £50 of free credit to put towards their energy bill. The new customer will also be treated to £50 of free credit when they complete their switch over.

It is a genius marketing move that takes all of the marketing effort away from the company, placing it on the shoulders of the customer. Who will ultimately be happy to see their bill reduced every time they refer a friend to switch over.

Bulb have found the sweet spot between attracting new customers and maintaining existing customer loyalty. It is a ploy that is now being used by thousands of other companies both at home and abroad.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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