existing customers

Small Businesses Favor Tactics that Balance Customer Attraction, Retention – eMarketer

source: http://www.emarketer.com/Article/Small-Businesses-Favor-Tactics-that-Balance-Customer-Attraction-Retention/1009794

Small business websites widely seen as most effective marketing technology

Small businesses, frequently strapped for both time and cash, often need their marketing dollars to work double time—using the same resources to attract new business and retain loyal customers.

Online marketing service provider Constant Contact conducted a survey in October 2012 of 1,305 small businesses and nonprofits from its customer base to see how different tactics and channels balanced customer acquisition with customer retention.

Respondents were most likely to say that their website struck an effective balance: 77% said the site was well-suited both to engaging existing customers and attracting new ones. A majority of respondents felt similarly about their blog (69% said it was effective at both tasks) and their social media marketing efforts (60%).

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Thursday, August 22nd, 2013 news No Comments

B2B Marketers Rank the Best Platforms for Reaching Customers and Prospects

source: http://www.marketingcharts.com/wp/television/b2b-marketers-rank-the-best-platforms-for-reaching-customers-and-prospects-35674/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

ABM-B2B-Marketers-Most-Successful-Platforms-Aug2013A recent survey [pdf] from ABM asked B2B media users which media types they rely on for decision-making. The study also contains some interesting results from the marketer side: which platforms do they think are most successful in creating awareness among existing customers and generating targeted leads of prospective new buyers? It turns out there’s quite a bit of consensus: face-to-face event attendance is rated the most successful platform, by a fairly wide margin.

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Friday, August 9th, 2013 news No Comments

Flash Sale Sites Have A Social Media Problem

Source: http://www.businessinsider.com/flash-sale-sites-are-losing-customers-2013-5

Fab.com FacebookFlash sale sites are reaching the end of their growth trajectory, and might start consolidating soon.

Many analysts have blamed the problem on an inability to get designer labels.

But a recent study shows that various customer service issues could be responsible for the decline of sites like Fab, HauteLook, ideeli, and RueLaLa.

About 44% of social network commentary related to flash sale sites is negative, according to the study by Dotcom Distribution.

Consumers’ biggest complaints are related to shipping, log-in, marketing, and customer service.

According to the survey, BeyondTheRack, HauteLook, and ZuLily had the worst consumer feedback for shipping issues.

Fab’s site forces users to log in, which infuriated many customers.

Customers also expressed frustrations with “misleading” email marketing, according to the study.

One woman wrote that she was frustrated with TheFoundary.com because it sent out an email advertising free shipping when in reality the promotion only applied to purchases greater than $75.

These problems hurt the sites two-fold, according to the study: Customer service complaints on Facebook and other social media sites drive away both existing customers and potential new ones.

Flash sale sites can solve their social problem by responding to customer complaints regularly, and advertising promotions accurately, according to Dot! com Dist ribution.

The sites represent a $2 billion business, according to Reuters.

But to keep customers and attract new ones, flash sale sites are going to have to focus on the customer experience.


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Tuesday, May 14th, 2013 news No Comments

Spending Tons Of Money To Attract New Customers Is A Stupid Idea

Source: http://www.businessinsider.com/spending-tons-of-money-to-attract-new-customers-is-a-stupid-idea-2011-11

If you’ve ever tried to explain the concept of “make new friends but keep your old ones” to a five-year-old, you have a pretty good perspective on how many high-growth businesses approach customer acquisition and retention.  Growing businesses tend to spend so much of their time and money acquiring new customers that they often overlook their best source of growth: retaining and growing their existing customer base.

One of our clients has more than 90 percent of its resources–people, marketing budget, etc.–focused on creating millions of new customers a year. Their business model is based on monthly recurring feeds, much like the cable or wireless industries. Customers come in and they stay…until they don’t. An analysis of the client’s historical data shows that the average customer stays for an average of 2.5 years. Because their customer acquisition cost is lower than their expected customer lifetime revenue, they reach a break-even point in less than two years. So it’s a great business, as long as they keep generating new customers, right?

Wrong. The problem is that as the management team’s growth expectations increase, it gets increasingly harder to acquire more customers. As a result, customer acquisition costs go up and the quality of customers, in terms of how long they stick around, goes down.

To solve this growth dilemma, the client needs to ask three key questions:

  • What revenue growth will we achieve if we keep our existing customers for just one additional month, on average?
  • What will it cost us to do this by, say, improving customer service or adding customer benefits?
  • How does this growth compare, both in magnitude and cost, to acquiring new customers?

The answer for our client will be the same as it is in almost all businesses. It’s cheaper, easier, and more effective to retain current customers than it is to acquire new ones. In fact, if this business can retain all of its customers by just one additional month on average, they can achieve an additional 3 percent of annual growth. If they can retain their customer base for four additional months, they can create double-digit growth–without adding a single customer.

It’s simple math–something that even a five-year-old might understand.

This post originally appeared on Inc.

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Tuesday, November 29th, 2011 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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