Customer Retention vs. Customer Acquisition -- Which Makes More Sense in Today's Economy?

In a recent interview with B2B Magazine, Jeffrey Mills, director of marketing at Sage North America’s business management division, shared the company's top marketing priority: "engage current customers and ensure they're active" with the company...

Customer acquisition? Important. But second.

We agree wholeheartedly with Mr. Mills' approach and think focusing on customer retention should always be a top priority for marketing department (and we're sure it is for Mr. Mills).

But marketing to existing customers often becomes an afterthought for busy marketers, especially when the corporate objective is to expand market share and cultivate new customer relationships.

Customer satisfaction, as we've all read, is worthless these days. Customer loyalty is the holy grail. A loyal customer is less susceptible to competitive messages and not only returns for your products and services on their own volition, but advocates on your behalf when appropriate.

Loyal customers help companies weather uncertain economic times.

Creating customer loyalty requires patience and a committed focus on achieving that specific goal. Marketing should identify key customer touchpoints, and identify ways in which to significantly enhance the customer's interaction with the company.

Identify additional services that benefit your customers, provide a revenue boost for your company and deepen the customer's relationship with your product.

Customer engagement strategies can go a long way to protecting a marketer in an economy as rocky as this one. Companies that do it right come out winners over the long-term...