In rapidly changing times like this when it becomes difficult to find new customers, the already present customer base is a huge asset to the company. In such scenarios the question is can you grow your business without expanding your customer base? So, the dilemma remains as to whether to design a marketing budget for acquisition or a budget for retention – which eventually decides the growth trajectory of the company.
It might be quite interesting to know that it costs 5 times as much to acquire a new customer than to keep an existing one. It is a well-accepted fact that 44% of companies keep a greater focus on customer acquisition as compared to 18% on retention.
Striking A Balance Between Customer Acquisition And Retention Strategies Is A Key To Your Business Endurance.
There’s no straight forward approach on how you may divide your annual marketing budget keeping both acquisition and retention in mind, but if you have to build a pipeline then it would be beneficial to devote 60% of your resources towards customer retention. The remaining 40% can be utilized to strengthen the lead generation pipeline through various digital and affiliate marketing strategies. Even though there is no straight forward rule for this approach, a regular monitoring approach will help you review the results of acquisition and retention and fine tune your business goals accordingly.
- Prioritize channels for acquisition and retention: For example, POS (Point-of-Sale) and Web-Commerce based data works best for customer retention where Social media channels works for customer acquisition.
- Notice signs of customer defection in advance: Channel performance and channel productivity through Real-time CX Analytics helps you notice these signs. Channel specific promotional actions can reverse the trend.
- Build loyalty programs: Offer privilege and loyalty benefits for long standing associations of the customers. It pays you back rapidly as well as it helps in customer acquisition.
- Keep your follow-up promises at regular intervals: Every customer-query must be responded and closed with regular follow-ups, which eventually grows brand affinity. Autonomous Customer Service can drive these with 100% strike rate.
How can iFIX help you to improve customer acquisition and retention?
iFIX Autonomous Customer CARE solution provides Real-time CX (Customer Experience) through all its elements as listed below. You benefit from an integrated, holistic approach of Customer Acquisition, Retention and Endurance of your business operation – we call it your 360° CARE journey.
Naturally, different segments of your lead and customer population have different needs, desires, and pain points. Once you know who is buying your product and how they’re using it, you can tailor the style, language, and presentation of your online content to different audiences. Language, style, and persona speak volumes and can instantly alienate or attract individual buyers. Know what your target clientele likes, what they find relatable, and what they want from your product – to tailor your message specifically to the right leads.
Ultimately, both customer acquisition and retention come down to cultivating relationships with leads and customers. When you make a conscious effort to get to know your customers and their needs, they’re more confident in buying from you — and you’re better equipped to retain their business for a long time to come.
Subrata is Co-Founder and Chief Operating Officer (COO) at iFIX tech Global (www.ifixtechglobal.com). He is a continuous technology explorer and focuses on building niche technology products and solutions that provide competitive edge. Find more about Subrata at https://www.linkedin.com/in/subrata-ifixtechglobal/ . He is reachable at Subrata@ifixtechglobal.com