Web analytics are very useful when it comes to acquiring new customers and figuring out what to do with them once they’re acquired. Within business these are referred to as:

Acquisition Analytics

  • Acquiring a first time visitor or subscriber. The goal is to spend the least amount of money while attracting as many new customers as possible.

Retention Analytics

  • The main metric at play here is long-term value per: subscriber… visitor… e-mail address, and more. If Acquisition Analytics is all about saving money, then Retention Analytics is about providing valuable information and/or incentive to the customer.
  • For example, how many emails do you send to a new subscriber and how often do you send them? You want to keep them up-to-date but you don’t want to annoy them into un-subscribing. Determining the frequency of contact is just one aspect of the retention sphere.
  • Pricing is another important factor within this sphere. Providing brand new customers with a discount may not be as strategically sound as providing it to longer-term users. Theoretically, a brand new customer is so interested in your product they don’t care as much about saving money — they just want to use it. However, if this same customer is still with you two years down the line, they may no longer be as interested in your product as they once were and might be looking at competitors. Giving them a 30% discount – for example – at this point in the dichotomy could be a smart way of keeping them from moving elsewhere.

Acquisition and Retention go together like peanut butter and jelly when it comes to any company’s bottom line: maximizing profits. Each metric compliments the other: attract new customers and then find a way to keep them loyal. Spend as little money as possible while making the most in return. Study and utilize these metrics to make your business realize its full potential.

http://www.docstoc.com/video/167391560/Acquisition-vs-Retention-Analytics