One of the great debates that is raging in the Loyalty space is around the emphasis that businesses are putting on retention and on acquisition. In a world where resources are limited it becomes a fundamental decision whether to give attention to drawing new customers in, or instead to cut churn amongst your existing community.
For many businesses I have spoken with, especially those with the desire to expand into new markets, there was a more significant emphasis on customer acquisition. Tactics included wildly generous introductory offers and significant spend on advertising campaigns (both traditional and digital). It was also interesting to note that businesses emphasising acquisition over retention tended to be critical of the value of Social Media in marketing. They tended to see it as overhyped, overvalued and did not see it as possible for them to see a measurable increase in customers through interaction with online communities.
Retention-ists on the other hand tended to be the ones breaking ground with multi-channel and with customer analytics. They claimed to me that by lowering the value of your brand by offering initial discounts you do absolutely nothing to create customer loyalty. Only by building treating the customer as smart, savvy, independent minded adults can you build a productive and ultimately valuable relationship.
Read on to discover how relationships are being built in the social media space.
Follow this link to learn more about three businesses breaking ground with social media.
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