Investing In Customer Value Creation: Establishing The Right Percentage Of Spend

 

 

Alex Black • Senior Partner • CSC
Kenneth Fenyo • VP • Customer Loyalty • The Kroger Co.

It can cost upwards of 10 to 20 times more to acquire a new customer than to retain an existing one. Yet, companies often spend a significant share of their marketing budget on advertising and other acquisition vehicles.

Most companies could dramatically improve financial performance by increasing the loyalty of existing customers – retaining current loyal customers, moving more customers up the loyalty ladder, and winning a greater share of wallet. In the past, all different types of loyalty programs were launched to address retention but lately the economics of these efforts are being challenged and many marketers are searching for the right mix of programs, both internal and external, to foster long term, profitable customer relationships.

This breakout session will explore the ways companies can create more revenue and profits from existing customers. We will discuss a) the options marketers have to bolster retention, from new pricing strategies to traditional loyalty card programs to customer collaboration forums; b) key investment areas and costs; and c) how to measure customer and financial success.