Modern marketing rule No 10: Increased focus on customer retention
If your business relies heavily on acquiring new customers to survive and not is a newly started business something is terribly amiss.
Not only is this a costly and fragile setup to rely heavily on new customer acquisitions, but it’s also associated with another risk – customers talk to each other. Customer reviews are during this day and age crucial for building trust and credibility for a business and brand.
Your CRM is the heart of this and the engine that will make it possible to get the insight you need to follow up on key metrics such as; customer lifetime value, customer churn and customer activity.
As a rule of thumb, you need to find the balance between customer acquisition costs and customer lifetime value between different customer segments. Average CPA and CPL is just that, an average number. You need to dig deeper to discover the patterns behind various channels, customers CPA and evaluate if an initial higher CPA can be worth it if the customer in question is highly likely to be a customer for longer or spend more etc.
Customer retention is both crafting experiences through value and services and a numbers game.