The surprising truth that retailers didn't tell you about marketing investments

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Today you will discover the unspoken truth about marketing investments in retail. A joint study carried out in 2014 by the American consultancies BIA/Kelsey and Manta found that: “Small and medium-sized businesses are spending most of their time and marketing dollars on customer retention strategies rather than trying to attract new customers.

BIA/Kelsey and Manta have thousands of followers, most of whom are businesspeople. In this way, BIA/Kelsey works with the objective of making companies more competitive through market research and marketing in local media. Thus, Manta whatsapp number list  offers strategic services to companies, with the aim of helping them scale high-impact social and environmental change initiatives. Data on strategies Thus, the research heard approximately 1,000 owners of small and medium-sized businesses and found that 62% of these entrepreneurs dedicate the majority of their annual marketing investment budget to customer retention strategies (with the aim of making existing customers buy more ).



In contrast, around 56% of these same entrepreneurs are investing less than a quarter of their time and effort in customer acquisition. According to the BIA/Kelsey consultancy, the result was surprising. A survey carried out by her in 2012 showed that the main focus of small and medium-sized companies was on customer acquisition and that only 6% of them invested in customer retention . A significant change in focus. Customer retention Mercafacil had already noticed a similar movement in the Brazilian market. According to our view, this radical change in the way resources are allocated, which prioritizes customer retention and engagement rather than simply “acquiring” them, has some explanations: 1.

Competition in some sectors tends to increase and attracting new customers becomes more difficult. Selling once to each different customer is easy, but that doesn't make your business sustainable. 2. Companies fight for customer attention, generating a high demand for advertising channels, which consequently generate an increase in prices for services provided through these channels, making acquisition costs ever higher. 3. Loyal customers spend more over time compared to those who do not have any relationship channel with the store. At Mercafacil, there are cases in which the average ticket of a loyal customer is three times higher than the store's general average ticket.