Despite the high cost of acquiring new customers (vs. retaining ones they already have), only one-half (49.6%) of surveyed marketing executives say they know who their most loyal customers are and how best to reach out to them, according to new study by Acxiom and Loyalty 360.
Among surveyed marketing executives:
- Nearly 20% cannot identify their loyal customers (they strongly disagree (8%) or disagree (11%) they know who their loyal customers are and how to engage them).
- Nearly one-third (32%) report their customer knowledge is somewhere in the middle (they're neutral about whether they know who their customers are and how best to reach them).
The cost of acquiring customers typically exceeds the cost of retaining them. For example, Bain Consulting estimates that it costs roughly six to seven times more to gain a new customer than to keep one.
Strategies Are Set, but With Limited Success
Customer retention strategies have been widely adopted, but with limited success, the study found.
Most (85%) marketing execs say they have some type of customer retention strategy in place, but only one-half (49%) say those strategies are working; 12% of marketing execs don't believe they work at all; and 39% are not sure: