Marketers have spent the last decade laser-focused on customer acquisition.
However, the tide has turned, especially in the last year, when attracting new customers has been more challenging than ever.
The economic landscape is volatile, demand has softened, and venture capital is less abundant.
Many companies are cautious about spending, and marketing is often one of the first areas to face budget cuts.
As a result, much of the money previously allocated for acquiring customers has been pulled back.
The Opportunity in Customer Marketing
Despite these challenges, I believe that this shift represents a promising opportunity for smart companies to turn their sights towards customer marketing.
I'm talking about engaging with existing customers, a demographic that many companies often ignore, basing this oversight on the assumption that their customers are content. However, neglecting to engage, entertain, or educate these customers is a mistake.
Customers, by nature, are fickle. They're not innately loyal and can easily switch brands, especially if a product isn't deeply embedded into their business operations or technology stack.
The Need for a Renewed Focus
Given the fact that customers can change their loyalties if a better offer comes along or a new, more enticing option becomes available, companies need to double down on customer marketing.
They need to recognize that it's much easier, not to mention cost-effective, to keep an existing customer than to acquire a new one.
The Power of Customer Marketing
Customer marketing empowers companies to:
- Retain customers
- Reduce churn
- Create brand evangelists
- Drive revenue by selling more features or expanding the user base
Looking Towards the Future
This approach presents a new opportunity in 2023 and beyond, as we look towards 2024. By shifting our focus towards customer marketing, we can effectively navigate these challenging times, foster loyalty among our existing customer base, and drive sustainable growth for our businesses.
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