Dr. Markus Wuebben & Dr. Mark Elsner – Acquisition vs. Retention: Why It’s a Match
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The document discusses customer retention, highlighting its significance and the various factors that drive it, such as switching costs. It emphasizes that retention can prevent re-acquisition challenges and notes that platforms like Google and Amazon have made switching costs minimal, particularly in subscription and loyalty program businesses. The source of this information is Kotler's 2016 Principles of Marketing.
Dr. Markus Wuebben & Dr. Mark Elsner – Acquisition vs. Retention: Why It’s a Match
- 4. Retention Is a Good Thing 5 times more 5% 25-95% 60-70% 50-20% 50% 31%
- 5. So What Drives Customer Retention?
- 9. eliminated procedural switching costs ● ● ● ● ● ● ● ● ● Eliminated for all by platforms (Google, PC, Amazon etc.) Mainly applicable in subscription businesses & business with rewards (e.g. loyalty programs) For the “rest of us”
- 11. CRM
- 12. Source: Kotler 2016: Principles of Marketing