Why is customer retention so important?
Why don’t companies understand that once you have a customer captured and engaged with your brand that they are the most important customer you have? Today the cost of acquisition is so high, that every effort should be made to retain those customer you have as marketing job number 1, and acquisition comes next. Customer Loyalty builds Brand Loyalty which builds Blue Sky Value for your firm. It is the single most important value that you have when looked at by the public in valuing your business. So pay attention this is why The Page Group is in business to help you realize that you need to first support and strive to have a happy and content customer base. Today our customers are influenced by so many outside channels that we need to make sure we are delivering first on their expectations for being part of our brand family.
63 percent of CMOs prioritize acquisition over customer retention: Forrester
NEW YORK – Brand resonance is the state when consumers would miss a brand if it disappeared, according to a principal analyst June 24 at Forrester’s Forum for Customer Experience Professionals East: “Why Good Is Not Good Enough.”
Brand resonance can be measured by metrics such as the inclination to recommend, expressing preference instead of consideration and the willingness to buy at a premium price. Companies should espouse four emotional dimensions to achieve this state that tends to favor retention over acquisition, according to the analyst during the “Align Your Brand and Customer Experience” session.
“The customer experience and the brand experience are inextricably linked,” said Tracey Stokes, principal analyst atForrester Research, New York. “Consumers demand more from brands.
“When someone is in the exploration phase, just starting to look at a brand, [their] expectations are going to different than the buy phase,” she said.
The road ahead
How many brands can confidently say that their customers’ lives will be lessened if they went out of business? Obviously, the coveted status of any company is to become integral to the lives of their customers, but pursuing this level stymies more than it rewards.
Ms. Stokes outlined core components that brands can follow.
First, consumers trust recommendations from friends and family far more than other modes of promotion. Brands must deliver an experience that consumers want to recommend.
Next, consumers must prefer a brand to the point that competitors do not warrant consideration during the buying process. Thirdly, brands have to be able to command a premium price without repelling consumers.
These three factors can lead to brand resonance. However, a strong foundation has to first be in place.
A strong foundation is built on trust. Consumers have to trust that a brand will deliver consistently good experiences.
Next, a brand must also be essential to the lives of consumers.
This foundation is then boosted by being remarkable and unmistakable. Brands have to deploy campaigns that cannot be mistaken for competitor campaigns and that inspire consumers to talk with friends and others.
Many luxury brands have a reliable foundation and differentiate through “unmistakable” and “remarkable campaigns.”
For instance, Audi of America gathered fan tales of adversity and resilience for a live-stream event in Santa Monica, CA, directed by creative figures such as artists, designers and musicians.
The massive community-driven initiative was an extension of the “Paid my Dues” campaign that heralded the debut of the A3. As Audi repositions its entry-level vehicles to appeal to a broader audience, tapping the universal theme of overcoming obstacles will likely resonate (see story).
Also, Starwood Hotels and Resorts is anticipating the potential surge in consumer interest for wearables with a new Starwood Preferred Guest application for Google Glass.
Designed by the conglomerate’s in-house team, the app leverages Google Glass’s functionality while carrying over basic components of its conventional SPG app. Starwood will likely be applauded by the growing number of wearable advocates who are pushing to make Google Glass and similar items more mainstream. (see story).
Echoing a primary theme of the Forrester conference, Ms. Stokes stressed that brand activity should involve all facets of a company.
“The challenge we see is that marketing and customer experience are disconnected,” Ms. Stokes said.
Joe McCarthy, editorial assistant on Luxury Daily, New York