-Damon Richards
destination@customeracquisition.com
Marketers
face
a
big
question
in
todays
dynamic
world-
enterprise
success
lies
in
acquiring
new
customers,
or
retain
and
nurture
their
current
customer
base.
Its
a
conundrum
companies
have
faced
for
years
and
continue
to
do
so
even
now.
Is
it
wise
to
go
out
for
new
leads
or
develop
a
loyal
customer?
The
dilemma
is
where
to
allocate
time,
money
and
resources-
so
as
to
attain
profitability.
70
per
cent
of
the
companies
say
its
cheaper
to
retain
a
customer
than
acquire
one.
A
recent
research
shows
that
44
per
cent
of
the
companies
have
a
greater
focus
on
customer
acquisition
vs.
18
per
cent
that
focus
on
retention.
Customers
are
assets
that
need
to
be
acquired
before
they
can
be
management
for
profits.
Acquisition
will
remain
the
cornerstone
in
the
early
stages
of
a
start-up
business.
Its
a
means
of
brand
building
and
further
generating
revenue.
As
the
competition
rises
customer
acquisition
strategies
become
more
important
than
retention.
For
new
startups
and
for
those
looking
for
newer
markets,
acquiring
new
customers
is
crucial,
as
they
do
not
have
any
customer
base.
For
the
already
existing
companies,
where
the
market
is
mature
there
is
always
a
need
to
acquire
a
new
customer,
as
the
older
ones
are
lost.
Customer
acquisition
is
always
a
dependent
process
and
certainly
exerts
influence
on
customer
retention
and
consumer
behaviour.
In
the
E
consultancy
study,
47
per
cent
of
the
marketers
said
they
behave
equally
on
retention
and
acquisition.
Retention
is
all
about
turning
the
first
time
buyers
into
repeat
purchasers.
Customer
loyalty
has
been
positively
related
to
profitability.
It
takes
less
effort
and
resources
on
loyal
customers
compared
to
acquiring
new
one.
Amongst
rising
corporate
expenditures
on
customer
loyalty,
there
has
been
some
challenging
evidence
as
far
as
its
relation
with
profitability
is
concerned.
Recent
evidence
from
Werner
Reinartz
and
Kumar
has
shown
that
the
loyal
breed
of
customers
was
hardly
generating
any
profits.
Their
database
taken
from
four
companies,
studies
for
four
years,
challenges
the
fact
that
loyal
customers
are
cheaper
to
serve
lesser
price
sensitive
and
bring
business
to
the
organization.
Businesses
need
to
be
more
judgmental
and
objective
in
measuring
relationship
between
loyalty
and
profitability.
This
is
for
the
first
time
that
the
profitability
of
loyalty
has
been
challenged.
Understanding
which
customers
are
really
profitable
for
any
organization
remains
a
relative
term.
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us
on
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Disclaimer:
This
Newsletter
is
prepared
to
enhance
awareness
and
for
information
only.
The
information
is
taken
from
sources
believed
to
be
reliable
but
is
not
guaranteed
by
Chitkara
Business
School
as
to
its
accuracy.
Chitkara
Business
School
will
not
be
responsible
for
any
interpretations,
opinions
generated
or
decisions
taken
by
readers.