Businesses thrive on customer value growth, and although this is the top expectation of most CMOs' bosses, a strategic balance remains elusive between customer retention and acquisition. Customer retention is the primary focus for only 12% of companies, according to a cross-channel marketing study by eConsultancy and Responsys. This is in contradiction to longtime acceptance that revenue growth is faster, easier, and more profitable and sustainable through retained customers.
For personal checking accounts at banks, for example, customer attrition rates are 20– 25% during the first year, typically with $200 acquisition cost and $150 revenue generation annually, according to The...