I’ve repeatedly come across this notion, particularly in discussions about metrics like CAC and MER. It seems that digital ad campaigns are mostly seen as a means of attracting new customers instead of keeping existing ones. Is there an underlying reason for this trend, or could it be a misconception in how ad strategies are framed?
i think digital ads r choosen cause its easier to measur new cusomers achievment, while retention needs a blend of softer tactics n it’s harder to justify ad budjts on them.
Hey there, I’ve been thinking about this a lot lately! I believe one reason digital advertising often targets new customer acquisition is because it can be directly tied to immediate revenue growth and simply more measurable. It seems companies place a strong emphasis on metrics like CAC and MER, and those are naturally more evident when you’re converting a new prospect rather than deepening the relationship with an existing customer. That being said, I wonder if there might be more untapped potential in focusing on retention strategies with digital channels too. Do you think companies are potentially overlooking some ways of engaging their loyal customers online? I’d love to hear your thoughts on how brands might balance both needs more effectively!
It seems that many companies prioritize digital advertisements for acquiring new customers primarily because the budget allocated for ads is typically linked to direct revenue and the measurable influx of new business. In my experience, new customer acquisition metrics are more easily quantified, offering clear ROI figures and justifying ad spend. Meanwhile, retaining existing customers usually involves integrated efforts through customer service, email communication, and loyalty programs, which are managed differently from digital ads. This allocation of resources allows advertisers to drive immediate growth and scale marketing operations swiftly.