Companies derive 80% of their revenue from existing customers and only 20% from new ones. But marketing budgets devote the majority of revenue to acquiring new customers. Can certain technologies help nurture existing customers?
It's really the coolest part of the conversation about customer nurturing. It doesn't need to involve a great additional expenditure. Many of the same marketing automation technologies and analytics used in conventional marketing can be used to support customer nurturing. Before these technologies existed, it was hard to capture enough information to make these programs effective and some vendors discovered that their attempts through, say, generic email or direct mail only aggravated their customers. In that situation, businesses relied more on customer service to provide some nurturing, but the approach of waiting until a problem arises has its limitations. Also, in an increasingly self-service oriented world, the opportunities for contact with customers are diminishing. So, in a sense, marketing automation has given us a new avenue to existing customers.
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