Making a case for retention marketing in China

In China, customer acquisition costs (CAC) are outpacing customer lifetime values (LTV) and the reality is, there is little companies can do to reduce CAC online as the gatekeepers (social/e-commerce platforms and KOLs) hold the keys to consumer attention, but Parklu believes a focus on LTV can countervail CAC.
  • Retention marketing is dynamic and complex, often requiring agile thinking and flexible power structures that give employees the ability to act in the brand’s best interests; the goal of retaining more customers will be a moving target with frequently shifting requirements at the individual customer level, which makes an agile approach most suitable.
  • It is the opaqueness of most brands’ ability to retain customers that creates insecurity around engaging with some of the most effective customer acquisition channels, like KOLs in China.
  • Due to the interwoven nature of the buyer's journey in China, if brands improve retention efforts, other parts...

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