“Marketing Automation is FUN!” Is it really? Yes it is! And it is even more than that. It helps you engage your most valuable customers in a very personal way. It enables you to give your best customers that brand experience that will lead to higher brand loyalty. Sven De Waele, co-owner of FUN, a Belgian chain of toy stores, discussed the importance of the Retention Grid at The Marketing Automation Summit. The event took place in “The Hotel” in Brussels on September 18th and brought together more than 200 marketers from a number of different industries.
Customer centricity: that’s what it’s all about. That’s what we expect as consumer every day. But in an automated digital world, how can we keep the interactions real and personal? How can we minimize customer churn and boost customer retention? Sven pointed out that a 5% increase in customer retention can increase profits by 75% since current customers cost 7x less but spend 33% more than new ones. Isn’t that remarkable?! Your existing customers want more relevance and are less price-sensitive. Keeping existing customers requires a totally different approach then acquiring new ones. For every segment in the customer retention grid (new, red alert, at risk, sleepers, loyal, drifting, promising) there is a specific marketing approach defined. And to reach true customer centricity, online and offline channels must be integrated and POS and call center functions are well incorporated in the overall strategy.