What would happen if your business ran out of viable customers? What if the pipeline of new blood permanently dried up?
The continuous rotation of campaign taglines, creative messages, and clutter-busting noise helps to keep a baseline level of acquisition activity. OK.
And somehow along the customer life cycle, we loose them. They churn, churn, churn.
I think the starting point of doing business should be:
NO LEVEL OF CHURN IS ACCEPTABLE.
The cost of acquiring new customers
Companies today are using advertising, promotions and lead generation campaigns to attract new customers. All these tactics take a big chunck out of your marketing budget. I’m not going to repeat that acquiring new customers is more expensive, we all know that.
So we use these tactics to attract new customers, because we know they work.
The problem with these tactics is that they are not working anymore, or not working as good anymore as they used to do:
- 86% of TV viewers admit to skipping advertisements.
- 44% of direct marketing doesn’t get opened anymore.
- 99,9% of on-line advertising is not clicked upon.
Additionally, sometimes your budgets are cut because of a multitude of reasons, giving you even less arm-length to reach our to buyers.
Why do companies churn?
Usually companies switch because of the following reasons:
I still remember the time when I started thinking about how to automate a number of the marketing activities in the company I work for. The term marketing automation was unknown to me, little did I know.
As a marketer I had the following challenges:
- We had many incoming “interactions”, but we had no way of tracking these interactions and actually do something with them beyond responding to these interactions. With interactions, I mean we had people mailing us, visiting our website, participating to webinars, showing up at tradeshows, etc…
- We had no way of identifying all of these interactions (well, not always).
- I had no way of storing the marketing intelligence that these interactions brought me (now that’s where the challenge began).
- We had no way of actually converting these interactions into leads, or at least “micro-convert” them further along the buying cycle.