Mix It Up

Favorites May 02, 2013 No Comments

Customer Retention

Multi-Delivery & Response Channels

Savvy business owners integrate all marketing channels and business processes in order to achieve a successful Customer Relationship Management (CRM) approach. Engaging today’s sophisticated customer requires these channels at each stage of the Customer Life Cycle, with a shift from one-way advertising to building and developing relationships; a two-way conversation. Determining who your customers are and what they want is key to finding the most effective delivery and response channels to promote those products and services.

What are your challenges?

  • Sixty-seven percent of marketers view customer acquisition as their number one challenge, according to The Kern Organization’s 2012 Mid-Year Marketing Trends Study, released late September. Thirty-eight percent of marketers view customer retention as their number one challenge.
  • Harvard Business School Press reports that, despite the common knowledge that it costs five to ten times more to acquire a customer than to retain one, most businesses fall short in budgeting for retention.
  • A recent survey of marketing professionals by ChiefMarketing.com indicates that this year is all about recapturing consumer attention and engagement in loyalty space.

Keeping Score

In order to make informed decisions regarding effective delivery and response channels, it is essential to properly measure campaign effectiveness. One of the most potent tools is a database that tracks customers’ interactions with your business.

As we know, research says that an existing customer is worth more than a new customer, so you need to monitor and hold on to them – which is no easy task with the Internet offering up competitors just a click away. If you sell a product, someone can make it cheaper. If you provide a service, someone can always do it better or faster. Unless your products and services are well branded or very unique, your business will always be subject to churn.

That is why it is important to measure retention. Retention measures the activities of your repeat customers, tracking everything they do on your site whether it is a purchase or any other activity. By watching the individual actions of your repeat customers, you can respond optimally to their needs, then up sell and cross sell products and services to them.

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