Acquisition vs. Retention: Where Should Brands Focus?
What it means for customers if marketers focus on retention first.
THE LEAKY BUCKET SYNDROME
The old debate stands: Should companies focus on customer acquisition over retention?
Despite the fact that the cost of bringing in new customers is much higher than the cost to keep existing customers, companies place a disproportionate focus on marketing and advertising in order to attract new customers. In doing so, they create what's called the leaky bucket syndrome, i.e., as fast as companies are bringing new customers in the front door, existing customers are running out the back door. Should companies plug the leak or keep filling the bucket?
The debate about where brands should focus their energies and currencies is strong. Despite the statistic that acquiring new customers costs 5-25 times as much as retaining existing ones, marketers (and generally their CEOs as well) believe that resources should be spent on acquiring new customers. Why? Keep reading to find out.
In the meantime, there's just one question: How many of those new customers did they actually retain.
This white paper delves into the customer life cycle and addresses the dilemma about where enterprises should put their focus - on customer acquisition or customer retention?
By downloading this white paper, you will learn:
- What is customer experience?
- Why marketers tend to focus on acquisition and the impact of that
- The impact on the CIO and innovation
- How to transition from Buy to Own
- What it means for customers if marketers focus on retention first
- What should marketers do to deliver an exceptional customer experience throughout the customer lifecycle
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