Nahla Davies is a software developer and tech writer. Before devoting her work full time to technical writing, she managed – among other intriguing things – to serve as a lead programmer at an Inc. 5,000 experiential branding organization whose clients include Samsung, Time Warner, Netflix, and Sony.
Allocation of marketing resources is the key problem which leadership teams in marketing departments are continually trying to solve.
Often we talk about PPC vs organic, brand vs conversion, SEO vs social, or any such pairing of activities. But maybe the biggest question at the top of the decision tree is: Acquisition vs Retention.
Should you try to generate more revenue from existing customers? Should you spend more effort to develop new customers? Or is there a happy medium that will work perfectly for your business?
Based on statistics alone, your existing customers are your best bet for new revenue. It is generally easier and less costly to rely on the people you have already built relationships with. But businesses that don’t take sufficient steps to bring new blood into their base will inevitably die.
In this Process Street article, we’ll attempt to answer some questions, namely:
How involved should marketing be in retention efforts? And how do different company structures or products impact that? How do we weigh those efforts against acquisition – the primary function of marketing?
To help you through the process, we’ll be looking at:
- How other companies divide their efforts between acquisition and retention
- Why do businesses spend so much on new customer acquisition?
- How should you divide your marketing spend between acquisition and retention?
- Putting it all together with process
Let’s get rolling!