Retention is the new lead acquisition

The oldest marketing discussion

The oldest discussion in the Marketing book as Joel Mitch of Twist Image states:
- focus on keeping your existing clients engaged and thrilled
or
- teasing and convincing a new Consumer over to your brand?

Lead generation for customer acquisition

Companies spend on most of their marketing budget on lead generation and customer acquisition, forgetting about customer retention, even though most of the revenue will come from existing customers.

Marketing will go through many efforts and expenses like advertising, trade shows, email campaigns, landing pages in order to acquire new leads.

It is like shooting in the dark in the hope to hit someone. Thus waste a lot of ammunition (money) and effort.

Once a lead is found and qualified, the prospect needs to be nurtured and converted into a customer.
The road to obtain a customer is long and expensive.

Make existing customers to buy

Mark Klein of LONGBOW has a new perspective on lead generation: “Retention is the new acquisition“. This is based upon the fact that existing customers can bring increased revenue at a lower marketing and sales cost than new lead acquisitions.

Instead of getting more and more new leads, it is more economical to focus on the existing customers for increasing your revenue without increasing your marketing expenses significantly.
Making to buy your existing customers more frequently.
The facts are that your current customers:
- Have already been convinced of you products or services.
- Can be kept up-to-date with your changes in offerings by newsletters
- Call on regular time intervals.
- Could inform with you for the next purchase.

The goal of your communications or relationship is to try to engage your customer in order to make them buy more frequently.
This can be selling the same products or solutions as before, or cross-selling (s8eight) or up-selling (Jim Connolly).
If you want to increase your sales at a low cost, then focus on retaining your customers.

Where pays your company most attention to? Generating leads or nurturing customers?

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