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"Our Take"

(Past Editions by: Date, Title, Topic)

 
About "Our Take" 
"Our Take" is a collection of daily vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions, epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
 
 
7/7/06 - Budgeting for Retention and Acquisition
Recently, we discussed how much an organization should allocate to retaining customers versus acquiring new ones. I didn't get much feedback on the actual break down between the two as measured in the real world.
 
I suspect the lack of hard figures has to do with one of two things. Either people don't want to share those figures or they don't think of their customer facing budgets in term of those two objectives. My guess is that most people don't measure the mix that way.
 
One mobile phone operator responded by saying they actively take retention budgets into account in their total customer sales costs. They have well defined quarterly forecast/budget processes for customer acquisition versus retention costs, with a 70%-30% balance between the two. How does that mix sound to you?
 
Gary Lemke, Publisher
(Share your thoughts)
 

 
 

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