Some questions are as old as time. Take the whole chicken and egg thing. In comparison, Acquisition VS Retention is a much newer concept. Still, it\u2019s such a critical business question that we\u2019ve been writing about it for years.\n
\nAnd, if you\u2019re reading this right now, it\u2019s safe to assume you care about it a little more than you do about poultry reproduction mysteries, with all due respect to any oviparous roaming the face of the earth.\n
\nAnd, if you\u2019re reading this right now, you probably know Acquisition is the more \u201cfamous\u201d side of the argument. First, because it was here first. Advertising and branding not only come first in the funnel but also historically. After all, to do retention properly, and at scales almost as large as a highway billboard, marketers had to wait for the right technology to arrive. (it has, in case you\u2019re wondering)\n
\nIt\u2019s also sexier, and it\u2019s easy to see why: if you greenlight an advertising campaign, the people next to you on the train can rustle through a newspaper or glance out the window and bump into your work. This is not the case with most \u201ccustomer loyalty\u201d initiatives.\n
\nBut, in a digital-first, eCommerce-led world, the truth is that the Acquisition VS Retention dilemma should be a top priority for every business. And Retention should be punching way above its historical weight.\nThat\u2019s the kind of customers any business dreams about.\n
\nIn 2020, Bain & Company and Harvard Business School wrote that \u201cincreasing customer retention rates by 5% can increase profits by 25% to 95%.\u201d This math does not break, by the way.\n
\nThen came Covid and Covid policies, and validated these truths in more than one way. And, if business leaders learned anything during that time, they discovered that Acquisition is the \u201ctrendier\u201d sibling in their marketing family, the one easily affected by changes \u2013 cultural, pandemic-related, or others. And that, on the other end, Retention is the more \u201cstable\u201d one, the source of revenue that you can count on, even in times of elevated uncertainty.\n
\nAnd now, it seems that the understanding that Retention should actually be considered as a strategic initiative of equal importance to Acquisition was never more prevalent.\n
\nIn a CommerceNext survey of CMOs from mid-2021, \u201cRetention\/Loyalty Marketing\u201d was named the area where marketing leaders are looking to increase their investment the most. Within it, \u201cscaling segmentation\u201d \u2013 an essential requirement for a proper retention\/loyalty strategy \u2013 came second as the biggest challenge in retention marketing. (and this is where we say that, actually, scaling segmentation isn\u2019t such a headache, if you got the right technology, ahem ahem)\n
\nOverall, marketing leaders nowadays seem so aware of the power of smart CRM Marketing, the importance of personalization at scale, and the impact of micro-segmentation \u2013 that even when asked about their priorities for the holiday\/shopping season, \u201cRetention\/Loyalty Marketing\u201d came in 3rd, only behind \u201cacquisition\u201d (#1) and \u201ceCommerce\/site experience\u201d (at #2).<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Another poor time to make a sales call is Monday morning. Again, this one makes sense when you think about it.<\/p>\n","protected":false},"author":1,"featured_media":11,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[1],"tags":[5,6],"class_list":["post-38","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-complaints","tag-customer"],"_links":{"self":[{"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/posts\/38","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/comments?post=38"}],"version-history":[{"count":0,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/posts\/38\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/media\/11"}],"wp:attachment":[{"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/media?parent=38"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/categories?post=38"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/munir.mshohel.com\/wp\/wp-json\/wp\/v2\/tags?post=38"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}