If you’re not preparing to evolve your marketing strategies, you’re not putting yourself in a position for success. This is becoming truer than ever as we begin moving closer and closer to a world in which e-commerce dominates the business landscape.
The rapid rise in advertising costs is one of the most pressing marketing changes you need to be planning for going forward. Overall, customer acquisition costs have gone up nearly 50 percent in the past five years. This rise in cost means you’re likely set up to fail if you’re stuck in a mode of thinking about things the same way you did 10 or 15 years ago. Back then, there was a booming influx of major marketing channels with much lower advertising costs. This environment made spending a great strategy. You simply got a lot of value based on what you were spending.
That is obviously becoming increasingly less true as costs rise. So much so we’re at a point where customer retention is becoming just as valuable of a plan as customer acquisition.
As a result, nearly all the power has essentially been placed with the consumer. This means you have to be creating an exceptional customer experience. You have to listen to them, thoughtfully engage with them, understand their wants and needs, and develop a plan accordingly. Your relationship with the customer is your key to growth. The cost of acquisition is too high for your business to have success with high customer churn rates. You need a base of loyal consumers with a high affinity for your brand rather than relying on one-time purchasers.
One place to start is with a focus on content marketing. According to ProfitWell, companies that use content marketing experience higher growth than those who do not. Furthermore, content marketing that is focused on customer success can be particularly effective in improving retention rates.
Building a marketing plan around retention can also result in gaining a team of affiliates that will help your business grow and thrive. Consumers trust other consumers above all else. The majority of consumers may not take your word for it, but they will take the word of their best friend or trusted neighbor. It’s a cycle of influence and growth that has incredible potential. This is another reason it doesn’t make sense to continue deploying a marketing strategy centered around dumping money into customer acquisition.
Just remember, the more pleased your customers are with your brand, the more they are going to mobilize on your behalf. You have to leverage the relationship you already with your best consumers.
While you’re trying to put a plan in place to combat rising cost in advertising, also think about the importance of customer lifetime value. After all, that is what your business should ultimately be optimizing for with everything you do. And if you’re optimizing for customer lifetime value, one of your primary focuses is retention. It’s all a fantastic approach to neutralizing the cost of acquisition and thriving as a brand in spite of the power that lies with the likes Facebook, Amazon, and Google.