Parties That Have Anchored This in the Core of Their Business Model

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Parties That Have Anchored This in the Core of Their Business Model

Retention as a basis, but also as an opportunity for growth Good retention figures should always form the basis. However, that does not always appear to be the case. The acquisition costs per customer are now very much on the minds of many advertisers. Strangely enough, this unfortunately does not apply to the retention figures. It is often clear what the first order yields, but if you ask the question what a customer will yield over several years, it often remains silent. As a result, it is not experimented with or optimized for. That is not logical at all, because that number is of very great importance. It not only determines the return you can make on your online marketing investments today, but also determines how sustainable the strategy you are currently pursuing.

That Have Anchored This in the Core of Their Business Model

Customer retention rate. Image source: r-bloggers The margin you make as a retailer on the sale of one telephone or television will often not differ that much. But, if the customer orders something from you 5 times a year, and only 2 times from the competition, the differences suddenly become very large. The basis for a huge flywheel is then quickly laid. Many large parties have seen this early on and have Kazakhstan WhatsApp Number List acted accordingly in the implementation of their strategy. Amazon promotes retention with Amazon Prime, among other things. Bol does that with Bol.com Select. With these retention programs they are able to retain customers for longer, earn more money from these customers and are therefore able to invest more money in the acquisition costs of a new customer. 13. The battle of the business models continues In fact, we basically only know 4 different business models.

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Anchored This in the Core of Their Business Model

The oldest – and often least flexible – model is the model of hotels and car manufacturers. Another well-known model is the advisory model, which includes consultancy companies, for example. In addition, you have so-called assetlight models, where the pre-investments for 1 version are very large, but then cost almost nothing more. Salesforce and Microsoft are good examples of this. Finally, you have the model of network orchestration, with platforms such as Amazon, Booking.com, Facebook and Uber. In many cases, the stock prices of these types of companies just keep growing and growing. And that is of course not for nothing. Parties that have anchored this in the core of their business model almost always run off with the big money.

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