The Value of the Existing Customer

The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness By creating systems that 12.4% By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos The Value of an Existing Customer In a perfect world, it's both and everything in between. In the real world the general marketing rule is that retention is a lot more cost effective than acquisition. Carcde Johnson, Forrester Research On which is more important ke clients thrilled or wooing new consumers eping existing Customer Retention vs. Customer Acquisition 6.7 50% 5.95% to number of times more amount customer attrition amount of increased profits that can come from boosting customer retention rates by as little as 5 percent rates could reach if left dor- costly it is to acquire a new customer than retain an existing one mant over a 5 year period Source http//www.businessfastaward comysmall-businessmarketing-strategies customervetention vscustomeracquisition/ Frederick Reichheid of Bain & Company Costs Associated with Finding New Customers e Steps to Take to Increase Profit Steps to Increase Profit and Save On Existing Customers New Customer Costs -Cost of advertising/promotion Price sensitivity - Personal selling - Setting up new accounts Time and money in explaining business Reducing the frequency of advertising and volume of promotions, such as free gifts, discounts, and sponsorships, will save on these costly activities. Reducing personal selling budgets allows a business to save on the commission for sales to new customers Cost associated with the inefficient persons. dealing with new customers Reducing the amount of new customer accounts saves on setting up accounts and reduces the entertainment budget for customers. Profits Generated from Satisfied Customers • Reduced price sensitivity • Reduced switching to competitors • Increased referrals Increased repeat purchased 4 Reducing time and money on explaining business procedures and costs with new customers will save overall, Because existing customers are less price sensi- tive revenues increase by charging the premium to loyal customers. How Loyal Customers Give a Business a Competitive Edge Source pwkoellaycomaoogouty recuiting new customers s more hem The answers given by 300 marketing leaders of various large companies show the importance of existing loyal customers to the success of a company: Which of the following results are integral to your definition of successful customer engagement? Most Important Marketing Objectives, According To U.S. Marketers Repeat purchase behavior Customers become brand advocates who market on your behalr Taking customers away from competitors Customer willingness to pay a premium Customer resistance to competitive products and Creating awareness for long-term brand building 15.4% 29.9 % Customer acquisition services Customer sunon for the hand refucesmateting and pramo nedene sales costs Customers volunteer time and talent to improve brand's products and services Lead generation to 21.3% support sales 26.6% Customer retention How can the CMO/marketing function best encourage customer engagement? 15 30 The Primary Marketing Goal of U.S. B2B Marketers in 2009 By takinga leadership role to ensure authentic. consistent brand experience By creating campaigns based on customer interaction, not observation Other Brand awareness 12.4% By creating systems that poodurt d s in the By desighingbols and asteti that Brand a pantee Customer retention 20.6% 62.2% Customer Byincreasing emolevee education and trinin to createrich brand experiences By designing big idea" market campaigns to express brand value acquisition Flowtown. Source Attowww.emarketercomAticle aspaos