Tech CMO turned Fractional CMO | ex Skype & Starling Bank | Taking guesswork out of growth | Founder @ The Scale Up Collective | Startup coach and advisor | Women in FinTech Powerlist |
Finally, the marketers' shift from an acquisition-only mindset I am celebrating this finding from LinkedIn's B2B benchmark report: Why? Because the focus of budget and time that marketing teams spend is shifting from a pure acquisition focus to understanding the importance of retention. The old adage of '𝐢𝐭'𝐬 𝐜𝐡𝐞𝐚𝐩𝐞𝐫 𝐭𝐨 𝐫𝐞𝐭𝐚𝐢𝐧 𝐚 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐭𝐡𝐚𝐧 𝐟𝐢𝐧𝐝 𝐚 𝐧𝐞𝐰 𝐨𝐧𝐞' is very true - why is that: 𝐋𝐨𝐰𝐞𝐫 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐜𝐨𝐬𝐭𝐬: Retaining existing B2B customers avoids the high expenses of lead generation, nurturing and sales cycles. 𝐇𝐢𝐠𝐡𝐞𝐫 𝐥𝐢𝐟𝐞𝐭𝐢𝐦𝐞 𝐯𝐚𝐥𝐮𝐞: Loyal customers often make larger, repeat purchases and expand their contracts, increasing long-term profitability. 𝐁𝐮𝐢𝐥𝐭 𝐭𝐫𝐮𝐬𝐭 = 𝐟𝐚𝐬𝐭𝐞𝐫 𝐬𝐚𝐥𝐞𝐬: Established relationships streamline decision-making, leading to quicker renewals and upsells compared to starting from scratch with new leads. 𝐑𝐞𝐟𝐞𝐫𝐫𝐚𝐥 𝐩𝐨𝐰𝐞𝐫: Satisfied, long-term customers are more likely to refer your product to others, generating high-quality leads with lower acquisition costs and a higher chance of conversion. I have so many conversations about fixing the leaky bucket before spending more on acquisition because, honestly, you're literally throwing money away. 💬 If you're worried that this might be happening then drop me a DM, love to chat more about this topic! #linkedinb2bbenchmarkreport2024 #b2bconversion #retention #leakybucket #marketing #startupgrowth #scaleupgrowth
Great topic!
I remember how shocked a CEO the first time I volunteered to own customer success as CMO. I said “otherwise your business is just a leaky bucket full of holes”.. it’s incredible how much organisations are willing to spend on acquisition paired with sometimes how much they hate their customers and won’t issue a £20 refund when something goes really wrong. This is a welcome read Lucy but lots more work to be done!
This is such an important shift in marketing strategy! I'm glad to see more focus on retention. It's true that keeping existing customers happy can be so much more cost-effective than constantly chasing new ones. Your points about built trust and referral power really resonate with me. It's amazing how a satisfied customer can become your best marketing tool.
Way too much focus on new customers rather than existing!
Founder and CMO @ resonaX.ai (Helping b2b founders & marketers to really get to know their ideal customers and create marketing experiences that resonate and convert better) #buildinginpublic #marketing #AI #b2b
1wAcquisition-only focus = Missed Opportunity Retention focus = Long-Term Growth Fixing the leaky bucket before ramping up acquisition efforts is key. Don't throw money away—focus on keeping the customers you already have.