Why do we allocate an average of 80% of our retail marketing budgets to customer acquisition when 65% - 80% of our annual revenue comes from repeat customers?
Excerpt from my recently published article 80% of Your Store’s Revenue is Coming from This Source in highly regarded retail trade publication Retail TouchPoints:
After the initial startup phase, most retailers still primarily allocate an average of 80% of their marketing budgets to customer acquisition — to the potential detriment of their relationships with returning customers, who make up the highest percentage of brick-and-mortar and digital stores’ revenues.
I get it. You’re probably thinking that if I spend most of my marketing budget and efforts on getting new customers through the door, some will naturally become repeat customers, but this is an antiquated concept that needs to be reexamined.
You can read more about my findings in Retail TouchPoints.
Let me know if you have any questions or thoughts to share - firstname.lastname@example.org.