We spend so much time, energy and money searching for new customers. Yet, in case you haven’t noticed, in many cases acquisition costs are rising–often substantially–and often to the point where these efforts are cash negative.
Once we’ve acquired a new customer, we hit them with an never-ending stream of emails, free shipping offers and the like to increase shopping frequency or build order value. Unfortunately, if you actually do the math, a lot of these tactics are unprofitable or unsustainable.
We chase new store openings, product line extensions and the latest bright and shiny item like Donald Trump looking for the next person to insult. To what end?
Sadly, when it comes to the search for growth, far too many brands are doing it wrong. For most relatively mature companies, the best growth hack is retention.
If you don’t know your churn rate and how many dollars you lost to lapsed customers last year, go find out.
If you don’t know the reasons why they left, I suggest you get focused and get busy.
If you don’t whether they were worth saving in the first place, sounds like you have some work to do. The good news is the work is well worth doing.
And, going forward, make sure you distinguish between a hack and the hackneyed.