Repeat customers are the goal of every business. Acquiring a new customer can cost up to six times as much as retaining an existing customer. However, the big payoff can come in the amount that repeat customers spend. Recent studies indicate that a second-time buyer spends up to three times as much as a first-time buyer, and customers making three or more purchases spend as much as five times as much as a new customer.
There are times when maintaining the status quo is beneficial — a fact Coca-Cola discovered when it tried to convert customers to a new soft drink that bore the same name as the original but tasted very different.
Often, however, marketers need to challenge the status quo if they want to succeed. Technology evolves, customers change their priorities and competitors embrace new tactics.
Topics: Behavior Marketing
Reducing customer churn is critical to the growth of your business. You cannot offset lost customers by adding the same number of new ones; growth will be stagnant, but you will also be spending more to acquire the new customers, which means that your profitability will be negatively impacted. If you want to launch a war on your churn rate, the following tactics can help you win the battle.
Companies are drowning in data. As of 2011, IDC reported that big-data creation and replication would reach almost 1.8 trillion gigabytes.
That number could easily double every year; data is coming in from the Web, smartphones, inbound and outbound marketing, customer emails, opt-in programs such as loyalty programs, in-store transactions, and a variety of other touch points.
In the last three decades, there have been many disruptive technologies that have changed how businesses operate. It is difficult for many people to understand, for example, how companies once conducted business without websites, email or personal computers. Today, some people marvel that a company does not use Skype, cloud computing or social media. Of all the innovative technologies that have appeared in recent years, however, mobile has certainly proven to be among the most disruptive.
Topics: mobile analytics
Marketers have known for years that an engaged customer tends to be a loyal customer. Loyal customers are more likely to make return visits, and their average purchases tend to be higher than the purchases made by first-time buyers. The most common method used by companies to encourage customer loyalty is to buy it through reward points, members-only sales or other financial incentives. While such loyalty programs worked for many retailers in the past, today's customers want more.
Topics: CRM Gamification
When making the move to a digital enterprise, many businesses find themselves wondering whether they need to focus more on digital technology or the development of a digital strategy. A few companies even believe that technology alone is sufficient; if they can dazzle their customers with all of the latest technological advances, the strategy will take care of itself. Other companies find themselves so involved with developing a strategy that by the time that they are ready to implement a plan, the chosen technologies have been usurped by innovative methods.
Topics: Digital Transformation
Companies today amass more data than ever before, and a digital transformation tends to increase the amount of data collected. Due in part to the volume of data that most companies have accumulated, marketers are urged to be more data-driven if they want to achieve the best results for their efforts. However, many businesses do not realize that it is no longer enough to be data-driven. Databases are not adequate substitutes for truly knowing your customers.
Topics: Knowledge Management
Consumers are subjected to a steady barrage of marketing messages every day. Whenever they perform an online search, visit their social page, read a magazine, drive to work or watch a television program, they are exposed to advertisements competing for their attention.
In today's economy, retailers are being forced to trim margins to battle a marketplace of global competition, slow growth, increasingly demanding customers and rising costs. Many retailers have reduced their margins to a single-digit percentage, and most are struggling to find ways to reduce costs and operate more efficiently.