Know Me or No Me: Optimizing Your Customer Retention

Our world has radically changed. As target marketers, the increasing pressure to more effectively engage and retain valuable customers in a challenging economy while communication channels are exploding makes for a daunting dilemma. As consumers, the cacophony of marketing messages has risen to a deafening level with the advent of online marketing channels—social media, mobile, email, blogs—adding to the already crowded world of direct mail, print advertising, TV and radio.
In response, consumers are voting with their dollars and their attention. Many consumers have made it clear that it’s more about the message—and knowing them and speaking to them individuallythan it is about the medium. The era of mass messaging with irrelevant, cookie-cutter content is clearly over. Now, consumers are taking action.

With do-not-call lists, blocked messages and do-not-track actions, it’s easier than ever for consumers to shut out and ignore marketers who use irrelevant content. Many consumers are taking disengagement a step further. A recent study showed that 41 percent of consumers said they would consider ending a brand relationship because of irrelevant marketing—and 22 percent already have. In other words, consumers are saying, “know me or no me.” There is no more ignoring the relevancy mantra; the consequences for marketers are dire.

Look at the stats around direct mail with static content. Paper mail is estimated at six pieces per U.S. household per day, and an incredible 44 percent goes to the landfill. Email stats are even more telling: of 200+ billion emails sent each day, 97 percent are simply ticked off as spam.

Even when marketers have deeper engagements with customers, as with loyalty clubs and rewards programs, they often miss the mark in delivering meaningful messages, according to a survey conducted by the Chief Marketing Officer (CMO) Council and Ricoh. In fact, only 6 percent of consumers thought that the promotions received through loyalty club communications were based on preferences or past purchasing behavior.

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Comments
  • Pay_Per_Visit

    It’s true, meaningful marketing is definitely where you need to be as a marketer. Prospects and current customers want relevant, useful information and don’t want to waste their time with useless, self promoting or pushy emails.

  • Brett Keirstead

    This is spot on. Unfortunately a great many organizations don’t yet have the tools and technologies to segment their audiences in a manner that makes the delivery of their product (be it content, physical goods, e-product, etc.) relevant to the recipient. The good news is that trend is changing dramatically as the audience gets pickier and pickier and the advertisers demand more and more detail before spending money. Great post!