Customer Acquisition vs Customer Retention
Karen Lloyd Marketing
I was stunned today. I’m a customer for personal Car Insurance with a company who has large Digital Marketing Acquisition and Digital Marketing Customer Retention teams. It is my renewal time. My renewal was £100 more than if I purchased the exact same policy with the exact same company as a new customer. I assumed it was a mistake. I gave them a chance and spoke to the renewal team - but nothing they can do. Apparently they can only do this price for a new customer.
They have all my data and information already - how much effort is it to renew me? As a new customer there is lots of admin, so the cost of processing will be higher, not to mention the fee they pay to a referral site.
Next year no doubt they will offer me a lower price to acquire my business. But this is at a much higher cost to them than if I renewed this year. I will decline as I don’t trust them. So they lost a customer, not just on price but because I felt ripped off and lost trust in the brand!
OK I am over it. I have a quote with another company, and I have saved my £100. That is not my point. I feel frustrated on behalf of all the marketers out there that spend their time and energy working on this, but the failure of an integrated strategy means all their efforts are wasted.
As a Marketing Recruitment Partner, I work with companies and Marketing candidates focused both on Customer Acquisition and Customer Retention. I listen to their goals and efforts to improve – hence why they are often investing in more people in their team. I am baffled why it seems so difficult to implement an effective integrated stategy when it comes to Customer Acquisition and Retention.