Survey also finds that nearly 60 percent of B2B pros don’t think the messaging for customer retention strategies should differ from their acquisition-focused messaging
PLEASANTON, Calif., Feb. 14, 2017 — Nearly 80 percent of companies spend less than 30 percent of their time and budget on customer retention-focused marketing messaging and content, according to Corporate Visions’ State of the Conversation Report, “Customer Retention and Renewal Messaging: Mission Critical, But Missing in Action.”
What’s more, the report found that 42 percent of respondents say their companies invest less than 10 percent of their marketing budgets on renewal messaging efforts.
“These are alarming figures, especially given how many B2B companies are relying more on subscription or service models,” said Tim Riesterer, chief strategy and research officer at Corporate Visions. “Companies typically incur so many costs during the acquisition and implementation phase that in the first section of the contract, they might barely break even. So, if you want to capitalize on the long-term value potential of your net new customers, you can’t afford to overlook your renewal messaging.”
Interestingly, the survey reveals that nearly 60 percent of B2B professionals don’t think the messaging for their renewal conversations should differ from their customer acquisition messaging—a finding that flies in the face of recent Corporate Visions academic research, which found that the messaging strategies that work best for winning new customers are not effective for securing renewals.
“Research shows the story you need to tell to protect existing customer relationships is actually the antithesis of the disruptive, attention-grabbing story you need to tell to acquire net new customers,” Riesterer said. “Whereas in new customer acquisition messaging you need to disrupt the status quo situation, in renewal conversations you need to do just the opposite, actively reinforcing it to build customer loyalty.”
Riesterer added: “In fact, our new research confirms a tested and proven renewal messaging framework that’s optimal for reinforcing the causes of the status quo bias, which you need to do well to have more effective renewal conversations.”
To access more research and survey findings, and to learn why purposeful renewal messaging is essential to driving long-term success, check out the State of the Conversation Report.