May 12, 2009

Customer acquisition and retention is the buzz for businesses

  • In a MarketingProfs survey, which looked specifically at the impact of the economic crisis, all of the respondents cited some form of customer acquisition or retention as their most important marketing objective.
  • When asked about their most important advertising goals for 2009 in a survey by Datran Media, 63% of marketers said gaining new customers; 44% said increased customer retention.
  • Similarly, 62% of the B2B marketers surveyed by BtoB magazine said their primary marketing goal for 2009 was customer acquisition, followed by 21% who said customer retention.

2 comments:

  1. This makes no sense. It costs much more to acquire a new customer then to retain an existing customer. If I have a limited budget why would I spend more of it on acquisition? I am going to spend my limited budget on retention and then cross-sell them services.

    ReplyDelete
  2. Hi Susan, I totally agree with you. However if you freeze your marketing spends on new business acquisition you are actually loosing your share of space in the market.

    Even current customers are always on a lookout for better options. If they get a feel that there are other stronger players [since you are not THERE in the market] the chances of competitors getting your customers becomes more.

    Hence being in any competitive industry, no one can avoid maintaining a strong market presence even if they have good customers.

    Hope to hear your thoughts on the same

    ReplyDelete





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