Marketing Strategy- Customer Acquisition and Retention

1. Prof. Aparna Kanchan

2. CLV Accounts for Varying Profits
Across Customers
© Palmatier
 Beyond 80/20 rule: firms earn 150% of their profits from 30% of their
customers
 CLV captures these difference in your existing customers so you can
acquire, expand, and retain the “best customers”
The Right Customers: Acquisition, Retention, and Development (HBR Press)
Breakeven
Range of Customer Probability
Number of
Customers
Modestly
Unprofitable
Modestly
Profitable
Highly
Profitable
Heavy
Losses
2

4. • Companies that excel at customer acquisition will have an executive tasked
to manage customer acquisition
• Companies that excel at customer acquisition will have a budget dedicated
to the task of customer acquisition
• Companies that excel at customer acquisition will understand the
economics of customer acquisition
• Companies that excel at customer acquisition will be more likely to employ
CRM technologies