In the rush to acquire new customers, do your clients forget their most profitable assets – existing customers? In a five minute video segment at FFDW Adweek 2013, relationship marketing expert Mark Morin offers some convincing metrics on the value of relationship marketing campaigns – and a surprisingly effective tool for the best response rate.
The relationship marketing model puts a high value on building the connections between a business / organization and its existing customers. After all, it costs about five times less to keep a customer than to bring in a new one. And marketing metrics show it’s 50% easier to sell a product to existing customers* than to new customers.
Would you prefer 3,400 responses or 120 responses per 100,000 customer contacts?
When you target existing customers, one marketing tool stands out from the crowd for effectiveness. Direct mail has a 3.4% response rate**, compared to 0.12% for email. You’d need to send 20 times more emails to the same limited pool of current customers to equal the response to a standard direct mail piece. And any professional marketer knows the dangers of sending 20 emails in quick succession!
Watch Morin’s engaging talk on the metrics around getting the highest returns for your marketing campaign.
*Marketing Metrics: the Definitive Guide to Measuring Marketing Performance by Farris, Bendle, Pfeifer, and Reibstein (2010)
**DMA 2012 Response Rate Report