Just 49% of company executives agree that they know who their most loyal customers are, and the best way to reach out to them and get them to engage with their brand, finds Acxiom and Loyalty 360 [download page] in survey results released in March 2012. In fact, just 10% of respondents strongly agreed with the statement, while about one-third were neutral and roughly 1 in 5 disagreed. And while the vast majority (84.5%) use customer retention marketing strategies, slightly less than half believe these strategies are working.
Although most respondents are using customer retention strategies, they are not devoting much of their budgets towards them. In fact, 6 in 10 respondents reported allocating 20% or less of their budgets to these strategies, while just 16% said they devote more than half of their marketing dollars. On a more encouraging note, 57.4% of respondents plan to increase their budgets for marketing retention over the next 2 years.
Data from “Making Every Interaction Count” indicates that recency, frequency, and monetary value (RFM) is the most popular metric used, at 64.1% of respondents, followed by customer lifetime value (51.1%). Roughly one-third use net promoter score and willingness to refer to gauge loyalty, while about 5% admit they do not measure customer retention at all.
Although nearly all respondents said they gather basic information such as name and email address from customers, some other forms of insight are not being taken advantage of. For example, while 4 in 5 track transaction data, 14% have no plans to gather this information. And the proportion of respondents currently collecting information about household size, and income, among other demographic data, is relatively on par with the proportion who have no plans to collect this type of information (44.6% vs. 40.2%). Similarly, though about 3 in 5 either collect or plan to collect a customer’s social handle, the remaining 39% have no plans to do so.
Results from a survey released in March 2012 by Columbia University’s Center on Global Brand Leadership and the New York American Marketing Association (NYAMA) also found marketers unlikely to collect social media data. In fact, respondents to that survey appeared much less likely to collect new forms of digital data such as mobile device data (19%) and social media data (35%) than they were to collect traditional customer survey data on demographics (74%), usage (60%), and attitudes (54%).
About the Data: The Acxiom/Loyalty 360 results are based on a survey of 129 marketing executives with a variety of titles.
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