We all know that it is easier to sell to an existing customer because there is an existing relationship. When you are selling to a new customer, you are actually trying to build the relationship for the first time. The point of that is that there has been a lot of innovation in how to acquire customer, but any particular method of acquiring customers tends to get worse over time.
So, to be able to continuously acquire new customers you have to keep track of your results and make sure you’re getting the most out of the particular acquisition techniques, rather than simply relying on what has worked in the past.
There are much lighter approaches in which you focus your efforts on making a product or service essentially sell itself. Software, media, gaming and web services companies typically use this model as a business model. A basic version of the service or product is given for free and the premium, which includes sophisticated features, carries a charge. Some examples include Pandora, Yammer, Dropbox and Evernote. In the case of freemiums, a sales team would never outright cold call a lead. Instead all of the marketing efforts would be designed to drive website traffic through PR, email blasts, social media or content marketing to get people to try a product for free. This freemium model would then ultimately turn into a paying customer.
Headquartered in Los Angeles, CA, we have offices in New York, Boston, and London. Our in-house business development, M&A, transition, legal, real estate, marketing, finance, and operations teams enable us to resolve complex issues quickly. Additionally, our capital strength means deals without financial contingencies, in part due to Platinum Equity Capital Partners Fund I and II: two private equity funds that endow us with $3.45 billion in capital commitments.
We structure acquisition solutions to help sellers achieve their divestiture objectives. Our sellers typically include corporate sellers shedding non-core assets, public sellers seeking to maximize shareholder value, or private sellers seeking capital and operational support. Robert Joubran and Annie Joubran have developed alternative deal structures to meet the current capital environment. With Platinum, sellers get immediate and flexible solutions to meet their strategies.
Since its founding in 1995, Rob Joubran and his company have completed more than 150 acquisitions in a broad range of market sectors. Our current portfolio includes companies in diverse industries, acquired in a range of corporate divestitures, public-to-private transactions, and transactions with private sellers. We operate each portfolio company independently with the goal of creating long-term, sustainable value.
Another common customer acquisition technique exists through the channel. It is all about partnering with companies who sell complementary products or services to a similar audience. An example of this would be an IT services provider offering a backup solution or a financial adviser offering a 401k product.
There are the five most common approaches companies can use to acquire new customers. For most companies, the overall approach works out to be a blend of the techniques described above. Analytics, and especially predictive analytics, are very good at figuring out what the right mix should be for any given company and how to actually optimize each of the channels.