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the campaign spend (broadly media and creative costs) required to acquire a conversion, then new data from Jicmail (the Joint Industry Currency for Mail) shows that the old trope largely holds up. If we are to get very literal about the definition of “expensive” and think about it purely in terms of an immediate cost-per-acquisition (CPA) metric i.e. That said, there is a matter of semantics at play here. The balance of acquisition and retention budgets are a matter of some debate, but what is clear is that terming one as more expensive than the other can create a misleading picture of effectiveness that isn’t particularly helpful when marketers are trying to get budget sign off in these challenging times. From Field and Binet’s work with the IPA’s Effectiveness Databank, to Sharp and Romaniuk’s How Brands Grow, it’s pretty well accepted that growing existing customer loyalty alone will not be enough to sustain business growth in the long run. The academic research is pretty conclusive. This has resulted in an oft-used stick used to unfairly beat acquisition-based marketing with.

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Critics point to the now well out-of-date research on which the finding originates, along with methodological issues that fail to acknowledge customer-lifetime-value. It’s a marketing trope that has certainly done the rounds over the years, and one that’s been debunked on several occasions. “Acquiring a new customer is five times more expensive than retaining an old one!” Source: Every customer loyalty / UX / martech presentation in the last 20 years. Partner content The Response Rate Tracker builds upon a raft of work that Jicmail has conducted in the effectiveness space over the last few years.










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