Focus your efforts, resources and capital on acquisition or retention? That is a critical question in today's B2C business environment and one that we at Vox feel the vast majority of firms answer incorrectly.
New customer acquisition is exponentially more expensive than retaining existing customers, but most business place the utmost importance on acquisition while placing minimal, if any, efforts or focus on retention. Guess what - not only is it more expensive to acquire new customers today, it is only going to get harder moving forward.
As people are inundated with marketing, messaging and communications from an ever increasing spectrum of sources and channels, we are all becoming attuned to just ignoring the vast majority of messages that "hit us" - just as was the case with the Subway Stradivarius - a perfect example of how people just don't have the time or inclination to care about your messaging or marketing efforts even if you have the best next thing since sliced bread.
You may have the best product or service in the world, but if potential new customers tune you out it means nothing... Wouldn't it be easier and more beneficial to focus your limited resources on the customers who are (for the time being) already listening to you? We think so... Check out our Customer Experience Calculators to see how Acquisition and Retention stack up against one another.
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