The Effectiveness Of Free Products On Customer Acquisition And Retention Of Paid Products

Providing gift promotions to attract customers is a popular way in online marketing.However,how to better balance customer acquisition and customer retention through gift promotion,so as to obtain customers with higher customer life value is still a challenge.In addition,the online market and offline retail are quite different,and the heterogeneity of customers may have a significant impact on online decision-making.To further explore these issues,we studied the impact of customer acquisition methods on customer acquisition and retention of paid products based on the personal clickstream data of 5.47 million customers of a large domestic Internet insurance company.And in further analysis,we explored the moderating role of customer heterogeneity,that is,the moderating role of privacy concerns and product uncertainty between customer acquisition methods and customer acquisition and retention.We found that compared with conventional methods,gift promotion is associated with a higher likelihood of acquiring customers,but it is also associated with a higher rate of customer churn.In addition,we found that customer heterogeneity can overcome this dilemma.For example,compared with others who obtain customers through gift promotion,customers with higher privacy concerns or higher product uncertainty have a better balance between customer acquisition and customer retention.Our research illustrates the role of gift promotion,privacy concerns,and product uncertainty in customer acquisition and customer retention.While conducting comprehensive research on customer acquisition and customer retention,it also emphasizes the impact of customer heterogeneity on the online marketing environment,which complements previous research and has certain guiding significance.In addition,this article is based on the massive real data of the enterprise for research,the original data is up to tens of millions,which reduces the impact of data authenticity to a certain extent,and provides a certain reference for the promotion-related research under the Internet background.