I was excited to interview Tom Ebling last week, a true retail technology leader whose stint as CEO of Demandware from 2010-2016 included growing the software company into a $300 million public company that was acquired by Salesforce for $2.8 billion in 2016. Continue reading
Customer acquisition has long been an engine of growth for e-commerce retail, especially with the expansion of low-cost digital marketing channels like affiliates and product listing ads. In the early days of e-commerce, it was a land grab — acquire as many customers as possible, for as cheap as possible. But we’ve reached a tipping point as e-commerce approaches maturity. Many brands have seen their cost per acquisition (CPA) going up as retailers saturate digital channels to reach new audiences. At the same time, the return on every new customer acquired is going down — as customers, more price-sensitive than ever, are lured away to low-cost competitors. The way for brands to break the cycle and drive sustainable long-term growth is to focus on acquiring higher-value customers.
The world of acquisition marketing today is one of highly fragmented channels and tools. Different channels rely on different types of technology and point solutions to optimize around their own metrics — which often differ depending on the role that the channel plays in the path in the conversion. Adding to the confusion, channels frequently don’t communicate with one another — making it difficult to assemble a complete view of the customer.
If you haven’t yet had the time to read our latest book on leveraging customer analytics to build a scalable churn prevention system, here are the top takeaways.
1. Retail is evolving faster than ever before in the history of the known universe. 30% of U.S. customers say they change brands often just for the sake of variety and novelty, and 49% of customers will gladly switch brands—for a coupon.
2. The economics of saving customers from churning really adds up; repeat buyers are essential to long term growth. Preventing just 1% of your very best customers from churning can lead to an overall revenue increase of 5%. Yowza.
Marcia Oakes, Senior Director of Digital Marketing