Yes there is no second thought that every business needs fuel in the form of money to have that in organic growth which will help in expanding the business and also help in giving the much required marketing budget to expand and gives you the freedom of not worrying to pay salaries and thinking all time on how to pay salaries or any other contingencies.
So any business founder will say first I need money to create awareness about my existence, then go for acquiring the customer, which will help in building business. The founder wants to build it faster and penetrate faster so as to capture the customers who are first time with hope that once he becomes customer he will bring in his loyalty to your company.
In today’s scenario-expecting loyalty from customer is pretty hard, as the reason why he became your customer is not the loyalty but the greed you gave him by discounts and pampered him to enjoy your company product and services. This type of strategy never existed in earlier market fine what ever may have been the conditions.
But cost of acquisition of customer only by providing rewards is only till the time you give the rewards in the form of discounts or free value ads or gratification. The moment you stop the normalcy is restored. Lets understand in simple situation its like kid who says you are the best uncle in world when you give him chocolate or ice cream and the moment you scold him or don’t give you become the baddie uncle.
The customer is looking for value and what you are providing is the value and the day you stop then he will also stop. The reason is you are inducing him to buy for example if you selling pressure cooker which is commonly found in every house by giving lets say 45% discount this will ensure that people buy one more pressure cooker as they are getting it at lesser price and don’t mind having one extra at home.
Then when you increase the price to normalcy you can see the drop happening, as life value of pressure cooker is minimum 10 years all you need is to change the inner rubber ring.
Having strategy of customer acquisition and spending budgets for acquiring will not hold good all the time as the amount burnt on creating awareness is never gonna be recovered from sales or revenue as the days of captive media is no more and having wider dispersion means need to advertise in various media to reach sizeable customer awareness.