Welcome | View My Profile | Sign Out
MediaPost Home About MediaPost Privacy/Terms Media Kit Sitemap
Publications Home News
Online Media Daily Media Daily News Marketing Daily Mobile Marketing Daily Search Marketing Daily
Daily Feed> Email Daily Feed> Video Daily Feed> Social
Online Blogs
Online Spin Email Insider Search Insider Behavioral Insider Online Publishing Insider Mobile Insider Video Insider Gaming Insider Performance Insider Metrics Insider Social Media Insider Just An Online Minute Daily Online Examiner Raw Blog
Media Blogs
Research Brief Diane Mermigas:On Media TV Watch TV Board Magazine Rack Media Creativity Notes From the Digital Frontier Digital Outsider Mad Blog Red White and Blog
Marketing Blogs
Engage:Hispanics Engage:Kids 6-11 Engage:Moms Engage:Boomers Engage:Gen Y Engage:Teens Marketing:Green Marketing:Sports
Magazines
OMMA Magazine Media Magazine
Subscribe
Feedback Loop RSS Feeds Archives Subscribe
Feb 24 OMMA Metrics Measurement (NYC) Feb 25 OMMA Behavioral (NYC) Mar 17 OMMA Global (San Francisco) Apr 14 Search Insider Summit (FL) Apr 18 Email Insider Summit (FL) Apr 27 Outfront Conference (NYC) May 12 OMMA Mobile (NYC) May 13 Digital Out-of-Home Awards (NYC) Jun 15 OMMA Video Jun 16 OMMA Publish (NYC) Jun 17 OMMA Social (NYC)
Recently Concluded Events
Jan 26 OMMA Social (San Francisco) Jan 25 OMMA Performance (SF) Jan 12 MEDIA Agency of the Year 2009 (NYC) Jan 11 OMMA Agency of the Year 2009 (NYC) Dec 6 Email Insider Summit (Utah) Dec 2 Search Insider Summit (Utah) Nov 3 OMMA Adnets (NYC) Oct 30 OMMA Video (LA) Oct 29 OMMA Mobile (LA) Oct 29 OMMA Mobile & Video (LA)
All MediaPost/OMMA Events Event Blogging Past Event Videos
Industry Events Calendar
2010 Digital Out-of-Home Awards
2010 MEDIA Agency of the Year 2009 2010 OMMA Agency of the Year 2009 2009 Creative Media Awards 2009 OMMA Awards 2009 Digital Out-of-Home Awards 2009 Media Agency of the Year
All Awards
Employment Situations Wanted Services Offered Post a Job
Briefs Reports Online
MediaPost Directories
Mobile Insiders Group
People Finder Edit My Profile View My Profile My Contacts My Calendar
HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Retention Is The New Acquisition Strategy
by David Baker, Monday, June 1, 2009, 11:00 AM

SHARE

TOOLS

RELATED ARTICLES
TAGS:  Email

MOST READ

The market is forcing marketers to address more complex questions than most have the bandwidth, resources and budgets to address. There's a lot of talk about retention marketing these days. In down times many organizations constrict, focusing on retaining customers, maximizing profits and controlling expenses. In good times, companies tend to think about new acquisition options, testing new channels and expanding reach in the marketplace. Two years ago the major goal of most companies we talked to was growing their consumer/b2b database. Today, it's about making money with what you have.

If we are in a constricting market, with the dollar not stretching as far as it has in the past, consumer confidence not as high and new "free" channels emerging to challenge the inbox, what do the small email teams do to make an impact in their companies? I think our Email Insiders are on the right track based on the topics of recent columns: strategy, focus on the database, understanding what metrics truly impact your business and where to place your strategic investments. These topics speak to the basics of what makes email marketing successful; I'll add to them with a few key "recession" nuggets you can pose at your new team meeting.

The dormant customer: Do you really know who is dormant? This could be a subscriber, an actual customer who hasn't purchased in some time, or one who has limited engagement with you through email. In either case, your goal is to find creative ways to engage the "dormant" and understand the channel dynamics of customers that are disengaged with email.

I have several clients that have significant portions of their database (>50%) that are classified as "dormant" (haven't purchased in 18 months and in some instances is defined by recency of response). I'm not a big proponent of purging this portion of your database to artificially inflate your response rates, but size doesn't always mean the most in recessionary times. Reach, defined as your ability to reach a defined market within a given period of time, is less important if the cost to manage this overshadows the effort. My best advice to businesses grappling with the dormant customer is to squeeze the orange as much as you can during these times (either commit to aggressively catering to this audience, or focus your attention on the other 50% of your database; a half-hearted effort won't win in today's market).

Mine the conversion point: Are they really dormant customers or is there a channel shift in place? Are they converting through search, media and you aren't getting credit as the "last click"? Most companies that I talk to are poorly set up to assign attribution to the email channel, which prohibits it from gaining clear insight into the impact email has on a customer event.

Some things you should consider when taking this on: email is very difficult to assign attribution to in a traditional attribution model since it influences so many portions of the conversion cycle. You should do this study with email subscribers, but exclude email in the attribution model, so you can determine what other channels are influencing purchase and then optimize email to support the channel influences. If your customers who have been purchasing through email, now are converting through media and search, this doesn't mean email isn't effective, it means it just got more expensive to complete the sale. Land on the landing page. One of the most challenging things to address is not what subject line works, what creative pulls, or what content is most relevant, it is understanding the exchange between your site, interstitial pages and the email. Email is outbound, the others are passive experiences that are dependent on some channel to get the consumer into those experiences. You should continually be testing how much content to put in email, how much to support on the landing page, whether the site (in its present form) supports the user experience you want to drive.

While heuristics will outline the tasks you want to enable and your site is designed around that, it also assumes a particular entry point and context. The landing page from a search term isn't necessarily appropriate for a consumer who received a personalized email. I always say that email can make up for a badly designed site, since we can direct customers, based on interest, to particular portions of the site rather than relying on the home page to help the consumer navigate. Landing Page testing, post-click path analysis will be critical to assess key site dependencies you have and the correlation to conversion, the types of pages consumed, the time spent relative the timing of the email, repeat visits post-click. All are critical drivers of behavioral insight. We've shown in many cases this type of targeting can increase conversion by 30% to 40%.

Our industry has made great progress over the past 10 years, the technology has come a long way, our view of optimization is on another level, but we are still fighting the send-and-analyze mentality that drove direct marketers crazy. We must understand there are many keys to optimizing a database and understanding the dependencies our channels have, and they begins with the owners of the email database, who have a keen insight into the customer, reaching outside our channel to understand the channel dynamics and patterns of our customers. Our view of acquisition has evolved, as will our view of retention marketing, all of which will change our operations in the coming years.

160 people recommend this article. 

5 comments on "Retention Is The New Acquisition Strategy"

  1. brian o'connell from Anistock
    commented on: September 17, 2009 at 8:34 AM
    the stated aim of any business is to acquire, develop and retain customers. The retention part gets most lip service as the metrics around acquisition and development are easier to prove.

    All marketeers need to get closer to customers, developing more 1:1 personalized communication, basic email blasts won't work.

  2. vedinteractive . from vedinteractive
    commented on: June 01, 2009 at 12:49 PM
    Exactly, we need to attribute ROI to the entire process rather than at the point of purchase. Great article.

  3. Lana McGilvray from Datran Media
    commented on: June 01, 2009 at 11:33 AM
    David, as always, smart piece. I'll be sharing it with our clients and partners.

  4. Mark Klein from Loyalty Builders LLC
    commented on: June 01, 2009 at 11:33 AM
    David, see my blog post with the same title from last September at http://www.longbowdirectmarketing.com/blog/retention-is-the-new-acquisition

  5. mark hughes from C3 Metrics
    commented on: June 01, 2009 at 11:24 AM
    Very easy to assign revenue attribution of email& CRM...no need to leave it out of the equation.

    Full White Paper available to download from C3 Metrics home page here: http://c3Metrics.com

Leave a Comment

You must be signed in to comment. Sign In

Do you have strong opinions and inside knowledge about the topic of this article -- and do you want to share your insights, observations and points of view regularly with the readers of MediaPost? To be considered as a MediaPost contributing writer, please send pertinent info about your credentials, plus several column ideas and one example of your writing on the topic, to pfine@mediapost.com. Please see our editorial guidelines here first.

DAVID BAKER


AUTHORS

ARCHIVES

RECENT VIDEOS
Recent Email Insider Articles
Three Keys To Creating Actionable Insights   
Three numbers: 90; 10; 0. 90 is the percent of total time spent on an email...
Facebook: Friend Or Potential Freak-Out?    
I have come to terms with the fact that not everyone's intentions are as honest as...
It's Not ALL About ROI   
54% of marketers plan to increase email budgets in 2010. Another 43% plan to keep their...
The Most Oopsy-Prone Elements Of Email Marketing   
As an industry, we can learn a lot from the mistakes of our peers. That's the...
Fishy Business   
My encounter with the Maine Department of Inland Fisheries and Wildlife has troubling repercussions for the...
Your Newest Challenge: Mastering The Small Screen   
Thank you, Steve Jobs, for giving me the perfect news peg for my Email Insider column...
Email Campaigns Bloom With Social Media   
Pepsi recently became one of the first companies to pull its Super Bowl ad spend and...
How Did I Get Here? Let's Talk Landing Pages   
Whether you send your subscriber to a customized landing page, a search result page or a...
Hierarchy Of Optimization   
As Abraham Lincoln said, "I walk slowly, but I don't walk backwards." We've made amazing strides...
The Email Humanitarian Effort   
What happened in Haiti is devastating on so many levels, and you can't venture far from...
>> Email Insider Archives 
ABOUT MEDIAPOST • MASTHEAD • MEDIA KIT • RSS FEEDS • PRIVACY/TERMS & CONDITIONS
©2010 MediaPost Communications. All rights reserved.
1140 Broadway, 4th Floor, New York, NY 10001
tel. 212-204-2000, fax 212-204-2038, feedback@mediapost.com