Short-termism can build long-term churn

I think most marketers will have been nodding their heads at the points raised in “ROI is Good. But is ROC Better?” last month. However, the truth is that for many organisations 18 months of recession have given rise to an attitude of short-termism. Pressures to deliver rapid ROI can quickly create a situation where customer acquisition – not retention – is the sole objective of marketing. This risks creating a cycle of customer churn, which cause extensive brand damage, harming longer-term prospects.

Agencies need to have the self-assurance to persuade clients that more rounded measures of success, incorporating both ROI and customer value, are the way forward. We can act as a powerful ally for in-house marketers, arming them with tools to convince other departments of the importance of customer value.

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