Thursday, November 03, 2005

Customer Acquisition Metrics

All marketers want to acquire new customers. So what metrics should be used to measure the effectiveness of acquisition marketing efforts? Key acquisition metrics include the following:

1. Awareness levels

2. Purchase-decision drivers

3. Rate of customer acquisition

4. Market share

5. ROI of marketing programs

6. Cost of customer acquisition

After spending over $700 million on Amazon television ads, Jeff Bezos realized that probably over half of that money was wasted. He now says, "Developing over one million affiliate sites is one of Amazon's best investments, and it is totally measurable. We have scaled back on TV and wish we had come to that conclusion earlier because television is simply not as measurable."

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