Acquisition is 5-10x more expensive than customer retention.
Why then do some companies appear addicted to a disproportionate amount of acquisition spending?
First, many marketing plans and budgets traditionally remain structured around programs, media channels, and the latest tactics instead of the business outcomes of conversion, retention, loyalty and client recapture.
Second, companies fail to leverage customer data against the universe of prospects. They jump swiftly into a campaign and select conversion tools that potentially reap inefficiencies and avoidable expense. With LS Direct Marketing’s measurable approach to find, keep and grow your most valuable customers, you rebalance your conversion and retention spending for a healthier prospect vs. client portfolio. By putting data first, we help you break “acquisition addiction” in favor of what the C-suite worries about most, which is profitability.
“One of the easiest ways to start to get a picture of who or what makes an ideal client is to take a close look at the customers your business has attracted to date. A faint picture of your ideal client will not only emerge, but many business owners will then also be able to clearly identify markets that they should drop. You should consider firing about 20 percent of your past customers simply on the basis that they no longer fit into the picture of your current business.”
– “Duct Tape Marketing” by John Jantsch
Prospect Conversion Tools & Tactics
Direct Mail and Email Campaigns
Landing Pages and PURLs
QR codes and Phone Apps
16, 32 & 40 Page Catalogs
Using predictive scoring methods, LS Direct Marketing enabled a furniture industry leader to deliver customized communications to the prospects most likely to become customers. The method was defined on a location-specific level, weighing demographic selects along with life-change events. The campaign, targeting the top 1/8th of U.S. households, delivered response rates over 2% and a cost of advertising under 4%.