From Customer Acquisition to Loyalty Retention, the Market is Shifting Strategy

Maintaining customer loyalty is crucial for achieving long-term success for a brand. Customers who are loyal to your brand tend to have a higher level of trust in your products and services and are more likely to become advocates for your business, promoting it to others. It’s important not to completely disregard customer acquisition, but it’s recommended to allocate more resources towards implementing customer retention strategies.

According to a survey by Advertiser Perceptions, many marketers are not overly optimistic about the year ahead, with only 3 out of 10 expecting bigger budgets than 2022. The survey suggests 37% believe the overall marketing climate will improve in first quarter, with client-side marketers more optimistic than agencies. Many respondents cited challenges such as inflation, rising interest rates, and supply chain difficulties, with 38% focusing on growing loyalty with existing customers over acquiring new ones in a competitive environment.

Despite this, if trends continue, marketing may find greater stability that could lead to more resources being made available. However, 54% of respondents foresee their budgets staying the same in 2023. It is important for businesses to balance both customer loyalty and new customer acquisition strategies to achieve growth and success.

Retaining loyal customers can result in increased sales and revenue over time, and it is generally less expensive than acquiring new customers. However, acquiring new customers can expand a customer base and provide new opportunities for growth and revenue.

The Advertiser Perceptions survey also found that many marketers are being savvy with their media investment decisions in a downturn, with many shifting focus from customer acquisition to fostering loyalty among existing customers. Planned reallocations of dollars to social media and connected TV were down from October, indicating potential challenges for these platforms.

However, traditional media channels, including linear TV, print, and out-of-home, remain the most vulnerable to economic shocks. Providing exceptional customer experiences and offering incentives to loyal customers can encourage them to share their positive experiences through reviews, referrals, and word-of-mouth marketing.

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