From Acquisition to Advocacy: How Customer Marketing Can Drive Business Growth

Did you know that acquiring a new customer can cost up to five times more than retaining an existing one? That's just one of the many reasons why companies should be focusing on customer marketing.

According to a recent study by Bain & Company, increasing customer retention rates by just 5% can increase profits by up to 95%. And yet, many companies continue to prioritize customer acquisition over customer retention.

Here are some other stats that highlight the importance of customer marketing:

• Repeat customers spend 67% more than new customers (BIA/Kelsey)
• The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is just 5-20% (Marketing Metrics)
• It takes 12 positive experiences to make up for one negative experience (Ruby Newell-Legner)

So, what exactly is customer marketing? It's the practice of engaging with and nurturing existing customers to build long-term loyalty and advocacy. This can include tactics such as personalized email marketing, targeted social media campaigns, loyalty programs, and customer service that goes above and beyond.

Technology has made it easier than ever to execute these tactics at scale. Today, we have customer advocacy and marketing automation platforms, that work in tandem with CRM and data analytics which allows companies to gather valuable insights into customer behaviour, preferences, and feedback. This has added a new layer of customization to 1-1 messaging at scale.

By focusing on customer marketing, companies can not only increase revenue and profitability, but also improve customer satisfaction, reduce churn, and create a strong brand reputation. So, if you're not already prioritizing customer marketing in your business strategy, now is the time to start.

Research links:

• Bain & Company: https://www.bain.com/insights/management-tools-customer-loyalty/
• BIA/Kelsey: https://www.biakelsey.com/wp-content/uploads/2015/09/Modern-Loyalty-Programs-Maximizing-Revenue-Through-Engagement-Whitepaper.pdf
• Marketing Metrics: https://www.marketingmetrics.com/resources/typical-results/
• Ruby Newell-Legner: https://www.rubynewelllegner.com/