Marketers worldwide are under-utilizing data and analytics, particularly when it comes to customer retention, according to a recent study released by the Chief Marketing Officer Council.
Only half of marketers have a strategy in place for growing key account relationships, and 45% believe CRM systems are not effective enough. Further, only 15% of companies rated themselves extremely good or effective at integrating disparate customer data sources, and 6% of marketers reported having “excellent knowledge” of customer data such as demographics, psychographics or transactional history.
“We have a situation where marketers are very outbound campaign driven,” said Donovan Neale-May, executive director of the CMO Council.
More than 31% of marketers reported churn rates of more than 10%, but two-thirds had no system in place to re-activate dormant or lost customers.
Neale-May compared the process to a “leaking bucket.”
“So many companies are spending to acquire new customers, but in effect they’re losing as many as they’re acquiring,” he said.