Digital Marketing, Email, Social Media Strategy, Email Marketing Advice, Integrated Marketing and Media, Social Media Marketing

Are New Customers Killing Your Company?

social media strategy free hugs 300x215 Are New Customers Killing Your Company?(Originally written for MarketingProfs MPdailyfix blog)

I’m sure you’ve heard the maxim that it costs a lot more to get a new customer than it does to retain an existing customer. It makes perfect sense, right? So why is it that we spend so much time and money in violation of that credo?

At the recent Email Evolutions Conference, direct marketing legend Stan Rapp pointed out that the advertising on this year’s Super Bowl equalled approximately one third of the total amount spent on email marketing in the U.S. last year.

Think about it. Thirty minutes or so of commercials featuring babies, monkeys, snow globes, horses and other trickery hoping to garner new customers in an economy where consumers are at best disinterested in establishing new brand relationships. Contrast that with email (and social media) where you can communicate directly to people that have already expressed an interest.

Turn Your Budget Inside Out

In an economy like this, why are we still having conversations about the effectiveness of radio versus print? Why aren’t companies turning their marketing budgets inside out, and focusing the vast majority of their resources on taking care of their current customers?

Think about it. How relevant and timely could your email program be if you invested in it what it costs to make even a modest broadcast commercial? How many Comcast Cares – style social media brand ambassadors could you hire instead of the money you spend on Yellow Pages or print ads?

Are you doing everything you can to hold on to the customers you have? I’ll argue that if you’re spending even one dollar on outbound, acquisition efforts you are not.

Think Bottom Line, Not Top Line

This approach requires a complete overhaul of the notion of ROI, moving from a customers and dollars gained mindset to a customers retained and dollars protected perspective. And how many industries can truly expect top line growth in the next couple years? If you’re not one of them, why are you continuing to focus on filling the top of the funnel instead of sewing the bottom of the funnel shut with killer customer service, social media outreach, and improved operations?

Think about it.

(photo by Kalandrakas)

Related
  • http://www.joemanna.com/blog/ Joseph Manna

    Jason, as usual you make very vivid and clear points about how companies irresponsibly advertise and burn their cashflow instead of looking inside and not out. Often I see many companies still running their advertising through a leaded gasoline carburated engine (print/radio media) instead of running lean and efficient (email marketing, social media, etc).

    I assume it’s usually ineffective management, low priorities on running efficiently or a general inexperience with new media for the company. When I ask others about how they interact with social media, I get the ubiquitous , “We need to do that –” for over a year! Yeah, it keeps social media consultants in demand, but seriously their business is at risk especially in this economy, a consumer-focused economy.

    Customers are a company’s best and worst marketers. Reward them and let them know that you’d take a bullet for them. That is assuming that a company actually cares about them and not just their money.

    ~Joe

  • http://www.infusionsoft.com Joseph Manna, Infusionsoft

    Jason, as usual you make very vivid and clear points about how companies irresponsibly advertise and burn their cashflow instead of looking inside and not out. Often I see many companies still running their advertising through a leaded gasoline carburated engine (print/radio media) instead of running lean and efficient (email marketing, social media, etc).

    I assume it’s usually ineffective management, low priorities on running efficiently or a general inexperience with new media for the company. When I ask others about how they interact with social media, I get the ubiquitous , “We need to do that –” for over a year! Yeah, it keeps social media consultants in demand, but seriously their business is at risk especially in this economy, a consumer-focused economy.

    Customers are a company’s best and worst marketers. Reward them and let them know that you’d take a bullet for them. That is assuming that a company actually cares about them and not just their money.

    ~Joe

  • http://thelostjacket.com/ Stuart Foster

    I think the message becomes try and retain your best customers AND those that you think would be your best customers while spending as little money as possible.

    The bottom line definitely needs to be remembered…you don’t want to change your approach to woo one customer then have the rest be dissatisfied and dump you.

    Stuart Foster’s last blog post..Why Overexposure Can be Bad for PR

  • http://thelostjacket.com Stuart Foster

    I think the message becomes try and retain your best customers AND those that you think would be your best customers while spending as little money as possible.

    The bottom line definitely needs to be remembered…you don’t want to change your approach to woo one customer then have the rest be dissatisfied and dump you.

    Stuart Foster’s last blog post..Why Overexposure Can be Bad for PR

  • http://twitter.com/bduverneuil/status/1525681441 Benoit Duverneuil

    Reading: Are New Customers Killing Your Company? http://ow.ly/2VI0

  • http://twitter.com/RichardKahuna/status/ Richard Telofski

    Are New Customers Killing Your Company? http://bit.ly/d14i

  • http://twitter.com/cpechayco/status/1531040491 Christine Pechayco

    Reading: “Are New Customers Killing Your Company?” by @jaybaer: http://digg.com/u117c5

  • http://twitter.com/kickofftopic/status/ Karmen Reed

    @jaybaer Jason U should give Urself much more credit than that. U produce GREAT post! I really enjoy your blog http://bit.ly/d14i

  • letstalkandchat

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