How many times have you heard that it costs significantly more to attract a new customer than keep an existing one? Or that satisfied, loyal customers are more profitable in terms of lifetime value? We may hear it and even say it a lot, but many companies do not invest as much time, effort, or resources on customer retention as they do in customer acquisition. And as the marketing environment becomes more and more competitive, and customers’ expectations continue to climb, those companies are at significant risk of leaving an opportunity to increase profits on the table.
Customer Retention Can Increase Profits 25 to 75 Percent
Bain and Company research shows how the smallest increase in customer retention can bring significant increases in profit, 25 to 75 percent. Proving that investing in your existing customers can be more lucrative than investing in acquiring customers. Why don’t more marketers make this a priority?
Lack of Customer Retention Technologies and Tools Holding Back Many Marketing Departments
Old marketing techniques had us focused on push messaging targeted at customer segments. These push campaigns were generic, repetitive, and largely irrelevant. And, in todays on demand, in the moment, customer driven, world they are the types of campaigns that are likely to have your customers bolting for the proverbial door.
Reducing the risk of defection and increasing the opportunities for increased loyalty and revenue demands a new approach. An approach based on being able to predict existing customer behaviors, across a multitude of channels and devices, in real-time.
New Technologies Help Us Market Smarter
Recently, new technologies have emerged to help us market smarter and allow us to interpret intent and support individual customers in a non-invasive, but hyper-personalized way.
The enabling technologies, now available and accessible to all sizes of organizations, sum up to a brave new world for us. And, it’s not that difficult to add them to your existing capabilities.
New technologies can take customer retention to the next level by optimizing the tools you already have in place, centralizing and unifying your silo data, and layering an orchestration capability on top of your individual channel tools.
Adding these technologies to your marketing ecosystem form a more modern architecture that enables you to take advantage of customer retention opportunities and increase profits.
Our latest eBook, The Value of Context, Cross Channel and Real-Time Capabilities: Advancing Marketing’s Productivity, outlines how you can make your marketing more productive, the techniques you need to employ, and the capabilities and technology platforms needed to retain customers in this in the moment and hyper personalized environment. It is available to download, here.
About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.