United States
Marketing Week
February 16, 2010
by David Reed
The difference between best-in-class marketers and the laggards when it comes to customer acquisition can be as much as a factor of 43. On customer retention, the performance differential is a factor of 10.5. Those dramatic findings have emerged from research carried out by Aberdeen Group, sponsored by Neolane, into Offer Optimisation: Using customer analytics to improve marketing performance.
In its report published last October, the research company examined over 200 companies for their capabilities, processes and metrics. What it found was a striking distinction between the leading edge and those who are way behind the curve.
Among the best 20 per cent, for example, nearly nine out of ten had improved their acquisition rates, with an average uplift of 11 per cent. Cross and up-selling was also improved at seven out of ten, with an 8 per cent gain, while retention rates rose by 8 per cent on average in the two-thirds of leading companies seeing an improvement.
