Recall our Life Table for first-time buyers (click here).
What happens to the Monthly Rate after Month = 12?
It's pretty much over, isn't it?
One month after the customer was acquired, 8.12% of first-time buyers who haven't repurchased yet buy in Month = 01.
Fifteen months after the customer was acquired, 0.86% of first-time buyers who haven't repurchased yet buy in Month = 15.
This is why a Welcome Program is so darn important. If you don't capture the customer when the customer is INTERESTED in what you have to say, you don't get other opportunities.
Ultimately, marketing is divided into three core functions.
- Awareness / Customer Acquisition.
- Welcome Program.
- Customer Loyalty.
We constantly read about (1) and (3), don't we??
We almost never think about (2), do we??
And yet, (2) is critically important.