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MarketingLab Business Tip – Acquisition and Retention: Finding the Balance

Acquisition and Retention: Finding the Balance

In the relentless pursuit of business growth, marketers serve two sternly demanding masters: acquisition and retention. Stakeholders must decide if greater marketing funds and creative energies should be applied to winning new customers or — given that it’s generally accepted to be much easier — keeping existing ones loyal.

Based on the results of MarketingLab’s recent Consumer Services Engagement survey, the priorities are clear in most organizations: 63 percent of all participants spend the majority of their time securing new customers. And among the marketers responding in the study, that figure spikes to 77 percent.

Forty-seven consumer services companies participated in the survey, representing retail, food, telecom, automotive, education, and health/wellness sectors. When looking at the number of marketing programs these organizations launch each year, the dominance of “new money” programs was just as obviously pronounced, outnumbering retention two-to-one.

From data gleaned in the study and its experience working with a range of retail clients, MarketingLab has derived these best practices regarding the balance between acquisition and retention initiatives:

Focusing the bulk of budget on acquisition is commonplace. But make sure your retention programs are authentic and that they build the connection between your brand and your customers. A simple check can be, “Are you talking with your customers or are you talking at them?”

Social Media is a great way to get value out of smaller retention programs, connecting a loyal customer and their loyal friends with your brand. A quick and honest response to a complaint/concern can be as valuable as positive comments made by your biggest fans.

Getting good customer insights and consistently converting those insights into programs is essential. The two share a symbiotic relationship — one cannot effectively exist without the other. Collecting quality insights, which participants admitted was a struggle in itself, can be augmented with increased social and customer support monitoring. Consistently converting those insights is a tougher task.

via MarketingLab Business Tip – Acquisition and Retention: Finding the Balance.


About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.


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