How To Make Marketing Investments Pay Off

Customers are your source of revenue so it makes sense to invest money into attracting, converting and retaining them. But as you plan your efforts, here are a few things to consider to make your customer investments pay off. Customer satisfaction is certainly an indicator of customer repurchase intentions. Improvements can reduce churn and create new business through referrals.

But even satisfied customers are not created equal when it comes to profitability. Understand why customers are satisfied. Some factors that impact both satisfaction and profitability include brands, products/services, buying experience, differentiation - and of course, price. Satisfaction and profitability are not mutually exclusive. Some customers simply can't be profitably satisfied.

So why make the investment in them, Invest resources in your profitable customers. How much you invest to acquire a new customer or retain them will vary. But you need to think beyond the most recent or first transaction. Consider instead what you expect to earn from customers on an ongoing basis.

This long-term view considers what products or services they buy, how often and for how long. Seek to understand your customers' value. When you do, you can look for ways to improve it and decide how much you will spend to acquire and retain customers. When it comes to marketing, think beyond new customer lead generation.

While important, a portion of your marketing budget should be allocated toward nurturing and retaining customers. When you consider lifetime value, it's a good decision. Plus, it's a lot cheaper to retain a customer than to acquire a new one! What we measure we can celebrate or improve! Do you want to know if your customer investments are paying off,

Your customer retention rate, over time, will tell you that. You can calculate the retention rate for any period you choose: weekly, monthly, quarterly or something else that is relevant to you. Pay attention to the trends over time! If you spend money to acquire and keep customers, it makes sense to get feedback and monitor customer satisfaction. Surveys allow you to do this.

When done right, they help you quantify the quality of your business - and support your investments. When done by phone, they allow you to stay in contact with customers, identify and fix mistakes, identify possible problems (before they become major issues) and request testimonials, reviews, and referrals. 1 above when you consider changes or improvements in your business - rely on feedback from ideal, profitable customers! Customer acquisition and retention are important for any business. Planning how you will do both will save you time and money. Incorporating the five items above will help you make better decisions.

Feeling down in the dumps now that the holidays are over, If you're hoping for something uplifting on these dreary days and cold nights, you're not alone. T.S. Eliot, in The Waste Land, said, "April is the cruelest month." But studies have found that for the majority of Americans, January is the most depressing month of the year.

Have you experienced any of this yourself, Your eager anticipation for the holidays is over, replaced by the reality of a celebration that didn't live up to your expectations. Your clothes are tight from the weight you gained from the parties and winter sweet cravings. Your loved ones are gone and you're feeling lonely.

By the end of the first week of January, one-third to one-half of you have already caved in on your New Year's resolutions, leaving you feeling disappointed and frustrated. The credit card bills have arrived and you realize you spent more than you planned. And, with all the holiday lights, you may not have noticed the short days and long nights in December - but now it's painfully obvious that winter is clearly here. It's time for some honest self-reflection. What is currently disturbing you the most, Consider both your physical and emotional reactions.