A Sign Of The Times – Companies Changing Their Marketing Focus

It takes a fundamental change in the environment for marketing models and approaches to change. In the current environment, we’re seeing a significant number of companies begin to use the principles of retention marketing (over acquisition marketing alone).

Banks are leading this paradigm. Given their unique situation, they have recognized the benefit of retention-based marketing strategies over typical acquisition-driven efforts. Last week, Mintel Compermedia reported that banks registered a 57% increase in direct mail geared toward selling additional products and services to current customers. A very big shift.

Banks also increased CRM-related mailings by 37%, including loyalty messages, renewal notices and upgrade offers to entice current customers. In fact, 94% of all bank emails in 2008 were sent to existing bank clients. The number rose from 89% in 2007, while acquisition-based emails dropped from 10% to 6%.

While acquisition-directed mail still accounted for the overwhelming majority of all bank direct mail, the percentage dropped from 85% in 2007 to 81% in 2008. Conversely, retention-based mailings increased to 15% last year.

Banks are clearly beginning to realize the importance of focusing on their existing customers. In today’s tough economic environment, it is more difficult than ever to acquire new clients and much more expensive. Companies in other categories need to learn from this and do the same. Especially retail, where most marketing departments are still being asked to drive traffic by acquiring new customers and very few have organized retention marketing programs.

This shift in your strategic focus – protecting your current customers and getting them to buy additional products and services is the best way to drive profitable growth at this time. And by communicating with them and engaging them in a deeper relationship with your brand, you can build valuable customer loyalty in a time of financial uncertainty.

Think current customers. Think retention first. You will see better results.

Anonymity On The Internet And Human Behavior

These days, we are given almost unlimited opportunities to voice our opinion. Thanks to the internet and outlets such as blogs, twitter, social networking sites and comment spaces on nearly everything, we are free to express our views to the world. Partnered with this abundance of space for sharing is the option to remain anonymous while doing so.

I have found that these factors have a great influence on human behavior. People stray from their normal sensible ways and seem to act more irresponsibly. Without the restraint of attaching their name and face to a statement, they are much more likely to express negative, extreme and even irrational viewpoints. The same way mobs come into being; when people are allowed to be part of a large group without the need to be personally identified or held responsible, all their inhibitions seem to disappear.

This also shows up on what I would consider professional websites. I have noticed that websites that do not require commenters to identify themselves tend to get more negative feedback and personal attacks. In contrast, websites where people must use a registered identity when commenting receive more constructive responses.

I am absolutely in favor of free speech. I think that freedom of expression is one of the countless wonders of the internet. I simply think that the lack of accountability exposes a fascinating feature of human nature.

A person’s behavior is arguably the largest component of their identity. But what happens when the two are no longer linked? Is this behavior OK?