In so many ways, we're suffering from a hangover.
Back in late 2007, we retained maybe 40% of last year's buyers. And we did a reasonable job of acquiring new customers.
Then the economy collapsed. Some of us retained 37% of last year's buyers. Some of us retained 31% of last year's buyers. Almost all of us took a hatchet to customer acquisition activities.
Today, retention rates have largely recovered. In many cases, we're between 90% of where we were, to 5% or more above where we were in late 2007.
And, yet, sales are lagging in some cases.
In many ways, we're in the hangover stage, now. The customers we chose not to acquire in 2008, 2009, and 2010 are not available to pay the bills in 2011. Be honest, you've run your file forecasts, and you know this to be true.
The economy isn't going to change. We're stuck in whatever we're in. So it is time to protect our future.
Go out there today, and find yourself new customers! Our future depends on it.
Helping CEOs Understand How Customers Interact With Advertising, Products, Brands, and Channels
June 20, 2011
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That is good advice while being pretty hard advice to follow. Making a case for an increase in acquisition marketing dollars is a tough hill to climb. Kudos to those who poured gas on the flickering flame in 2008.ReplyDelete