Are you missing a trick by focusing entirely on acquisition? In today's Retail Roundup, MD Rob Smith challenges the retailers focus on acquisition to offer a fresh view on increasing sales in the long-term.
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I'm Rob Smith, MD of Blueleaf and in this 2-minute Retail Roundup video, I'm going to challenge the retailers' obsession with acquisition.
We all do it, we all focus on the initial sales funnel. Where are people abandoning their cart? Can we reduce this abandonment? Can we re-target them? We fight really hard to get that sale back or to get the sale in the first place. This is all very admirable; in fact it's more than admirable, it's what we should be doing. However, this is not my issue; my issue is that we're absolutely obsessed with this and focusing the majority of our resource in this area. I don't believe we're focusing enough energy on what happens after the customer has made their purchase.
After the customer makes a purchase, this doesn't meant they've run out of money or they've bought everything they are ever likely to want. In fact it could mean quite the opposite. They're potentially in their honeymoon period, they've found your brand and they like you enough to buy something. At this point they're nothing but happy so suggesting complementary items by email a couple of days later could have a very positive return-rate. It's the first steps to building an ongoing personal relationship and this is absolutely key.
So what are you doing about personalisation? Are you using tools such as Monetate? What are you doing about marketing automation? Are you contacting new customers about add-on products, asking for feedback or even reviews? There is a massive pool of opportunity once the customer has made a purchase. I'd argue, it could be more valuable than the people in your sales acquisition funnel. It is easier and it costs less money to get sales from existing customers than to acquire new customers, so why aren't we working even harder on retention and growth?
What I'm saying is let's not be too obsessed with new sales and let's really think about looking after our relationships with current customers and potentially change our focus.
I'm Rob Smith and I've been talking about our current obsession with acquisition. Thank you.