Ehrenberg-Bass on why acquisition strategies also work for retention | WARC | The Feed
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Ehrenberg-Bass on why acquisition strategies also work for retention
Marketers should aim for acquisition but also understand that most tactics aimed at acquisition can also work to retain customers, according to the Ehrenberg-Bass Institute.
Why it matters
Marketers often struggle to find the right balance between money spent on acquisition versus retention. The Ehrenberg Bass Institute argues that by focusing on customer acquisition to boost market share, the same tactics will help with retention.
- Double Jeopardy law illustrates that brands should focus on acquiring non-customers rather than increasing retention/reducing defection of current customers.
- However, tactics do not build acquisition or retention strategies in isolation. Marketing activities typically build and refresh mental availability of the brand for all category buyers (if reach allows).
- So, aim for acquisition, but understand that most tactics aimed at acquisition can also work to retain customers.
“Consumer memory plays a big part in brand choice, but also on what consumers notice and give attention too. Advertising to acquire customers is also likely to assist in retaining existing customers, and vice versa” – Dr Kelly Vaughan and Alicia Barker, Marketing Scientists at the Ehrenberg-Bass Institute.
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