Budgets are often a contentious subject, and it is completely understandable why. Trying to maintain a stable budget in the face of rising costs is a challenge, and it becomes difficult to ascertain exactly how to break down spending, and where to spend. One aspect of a business where this argument tends to come forward the most however, is definitely marketing.
There are two main approach when developing a marketing strategy:
- “We need to acquire new customers, always”
- “We want to retain our existing customers”
The push and pull around this strategy is always, “Well, which one is the right one?”
It might tempting to just stick to one, since after all, it is so much easier? And if a lot of your marketing tends to be manual, then it makes sense to stick one as a time-saving strategy. However, by doing this, you do your business a disservice. Both customer retention and new customer acquisition have their place in marketing strategy, but one should not be overlooked for the other. If you are struggling with balancing the two, then it might mean it is time to reevaluate your business and its technology.
The right technology for your specific industry will allow you to create and deploy a marketing strategy that captures new demographics, while paying attention to the existing ones as well. Combined with predictive analytics and machine learning, these solutions enable you to increase marketing, without putting a strain on your budget while create killer strategies for long-term marketing to really gain customer attention.
Why is this? Because there is no connection, or rather, there is no technology in place to build a connection. By under-serving your existing base, you are alienating a valuable demographic that has the potential be long-term, loyal customers.
But What Can The Right Tech Do?
Simply, it will help you build and maintain that connection. In the past, businesses have not had the right tools for proper cross-channel retention and loyalty marketing but that is no longer the case.
Using analytics, you can allocate marketing budgets in a far more optimized way to accelerate customer retention and acquisition. Your data should be at the heart of any marketing, since it allows you to tailor your offerings for new customers while giving your old customers incentives to come back. The only way to really glean these insights and see what is working is to have analytics tools in place that can give you the right insights. With automation, the balancing act becomes much easier. Rather than spend your budget on costly advertising that is not yielding you any data for future use, invest it in a solution that gives you a long-term picture of your business while enabling it grow.