For small and medium-sized brokers, customer acquisition is definitely a top priority.
However, many brokers are overwhelmed by rising customer acquisition costs.
Even the famous brokerage Plus 500 with the fame of “low-cost customers”, has much higher costs in 2018.
When I saw the latest financial statements of Plus 500, I just couldn't believe my eyes!
In 2018, their customer acquisition cost increased from 474 US dollars to 934 US dollars, doubled. More exaggerated is that the customer cost in the second half of 2018 turned out to be as high as $1,537!
Looking back at the second half of 2017, due to the forethoughtful strategy in the digital currency market, the customer acquisition cost (CAC) of the plus 500 is as low as 373 dollars, such good days!
But good days are always short-lived, and the CAC in the second half of 2018 has directly tripled.
The bull market and the volatility of the market can greatly help brokers to acquire new customers, activate old users, and increase the frequency of user transactions, but this uncontrollable markets condition is hard to meet.
Only hard tools can make iron. Just like LEAN WORK's slogan for this year "Strengthen our core and fight hard", brokers can only successfully extract customers from more than 3,000 brokers around the world if they establish their own customers' channels.
Today, our diligent editor summed up the five classic ways to get customers. Which one do you use?
1. Get customers through IB
The IB model is a classic way to get customers. Whether it is a large, small or medium-sized brokerage, IB mode is super welcome by all of them.
IB is mainly to introduce customers to the brokerage to obtain rebate income. The IB agent's acquisition model is mostly used in areas where interpersonal relationships are the link, especially in China and Malaysia. For brokers who want to enter these markets, IB agents are definitely a good way to take into consideration.
Recently, there was news that IG Group is going to enter the US market. Their US subsidiary company chose an IB agency called Forest Park FX, to launch the IB program.
IB institutions are great local partners to get into a new area, they are familiar with the local market, have a stable customer base, help brokers quickly acquire customers and open the market.
2. Online advertising
Online advertising mode, mostly used by foreign brokers.
For example, when you are browsing certain websites, the banner and the floating window are all the places where the advertisements are carried.
If the ad is well played, you will accidentally click on it to find out more.
3. Sports sponsoring
Sports sponsorships are becoming more and more popular in the past few years. Many brokers spend even millions of dollars on various sports-sponsored marketing campaigns.
It is said that financial transactions have certain similarities in the user type with sports such as football and rugby, because these sports fans are more adventurous, just like a financial practitioner, that’s why that sports sponsorship helps brokers to reach potential customers.
Forex brokers are willing to sign sponsorship agreements with sports representatives including stars in sailing, motorsport, polo and other sports such as chess.
For example, Plus500 sponsors the Australian football team Brumbies to attract customers by offering discounts to fans of Brumbies.
InstaForex sponsored car rally, racing, and other activities, and invited tennis stars and winter Olympic ski champions as the ambassador. It is conceivable that in order to promote the brand and attract customers, they spend a lot.
In the age of the Internet, we are used to "self-reliance." If you have problems, go to Baidu or Google. Just search for it and everyone will become a "scientific scholar."
On the Internet, brokers must have their own place to stand stably. According to the survey, 81% of buyers conduct online research before actually purchasing.
The most common way to do online research is to "search", which is a very continuous source of traffic. If your name can appear on the first page of a customer's search results, your brand will receive a steady stream of exposure.
The competition for the forex industry is truly fierce. Thousands of brokers are taping customers, and the keywords of search engines are becoming more and more expensive. Money has been earned by search engine companies... (All the results with ads icon are paid)
5. Affiliate Program
According to COO Sun from LEAN WORK Hong Kong department, the affiliate program is very popular abroad.
Since last year, our editor began to pay attention to Plus 500, learned that they vigorously promoted the development of the affiliate program in 2018 and increased the customer acquisition rate in this channel.
As can be seen from this year's earnings report, the proportion of new customers’ acquired by the affiliate program has increased from 14% to 23%.
According to the Plus 500 official website, they mainly:
- Provide different affiliate promotion link, which is similar to the “promotional link” in our CRM product Broker Work, mainly helps brokers to count customer traffic and quality in different channels.
- Provide marketing banner templates in different formats and languages. Make it easy for affiliates to put these images on their own websites or channels to attract customers.
As long as someone becomes a Plus 500 customer through a link/picture posted by an affiliate member, the affiliate can receive a certain reward.
For affiliates with a huge amount of traffic or personal sources, becoming an affiliate of a brokerage is very attractive. The Plus 500, through the affiliate program, achieve a wider range of exposures and does not seem to pay too much.
A designer plus a CRM system, can achieve the conversion above as said, other brokers don’t consider trying it?
In addition to the above five classic ways of getting customers, smart brokers must have thoughts of many other ways.
For example, setting up a “perfect brand impression” is very helpful in building a customer relationship.
PwC found that in addition to price, the brand is the first-factor affecting consumer decision-making.
Building a brand is not easy, only to reach out to customers deeply and continue to meet their expectations to succeed.
Successful after-sales customers do not only need "soft power", but also "hard technology", such as friendly user interface design, convenient and practical background business management system, easy to use marketing tools, and powerful CRM……
CRM is not just for customer management, it can also be used to get customers.
If you don't know how to get customers with CRM, feel free to ask me~~
What do you think of when it comes to CRM?
does LEAN WORK pop out in your mind?