Retention, Loyalty or Acquisition Marketing?, from Automotive Digital Marketing.
We all want new customers. And it’s certainly mandatory to retain a customer to create a loyal one. But how we market our dealerships is increasingly important — as each form of marketing will deliver different results. The three terms: loyalty, retention and acquisition marketing, all have their own distinct meanings and should be used to satisfy different goals and objectives. While they are often not distinguished differently within most dealerships, they truly have different meanings, and will generate different results.
According to the experts at the Cambridge Dictionary, the definition of customer loyalty is as follows:
“The fact of a customer buying products or services from the same company over a long period of time.”
According to Wikipedia, customer retention is defined as follows:
“Customer retention is the activity that a selling organization undertakes in order to reduce customer defections.”
And acquisition marketing is defined as the act of bringing in new customers. Sounds similar, right? Which one is more important to your store? Isn’t it true that the less customers you retain the more you must acquire?