Nearly 80% of companies spend less than 30% of their time and budget on customer retention-focused messaging and content, according to a recent report while 42% of respondents say their companies invest less than 10% of their marketing budgets on renewal messaging efforts.
"These are alarming figures, especially given how many B2B companies are relying more on subscription or service models," said Tim Riesterer, chief strategy and research officer at Corporate Visions, which compiled the report. "Companies typically incur so many costs during the acquisition and implementation phase that in the first section of the contract, they might barely break even. So, if you want to capitalize on the long-term value potential of your net new customers, you can't afford to overlook your renewal messaging."
The survey revealed that nearly 60 % of B2B professionals don't think the messaging for their renewal conversations should differ from their customer acquisition messaging and that the messaging strategies that work best for winning new customers are not effective for securing renewals.
"Research shows the story you need to tell to protect existing customer relationships is actually the antithesis of the disruptive, attention-grabbing story you need to tell to acquire net new customers," Riesterer said. "Whereas in new customer acquisition messaging you need to disrupt the status quo situation, in renewal conversations you need to do just the opposite, actively reinforcing it to build customer loyalty."
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