To answer this question, I turned to Jerry Jao, CEO and Co-Founder of Santa Monica, CA-based Retention Science. His firm sells an automated marketing platform which profiles and predicts customer behavior in order to deliver contextual messaging at the best possible times. If you read my earlier piece with my coverage of Adobe Summit, then you know just how important context is becoming to marketers.
While whoever I ask about the biggest marketing mistakes has their own bias and provides a different response, Jerry's answers reiterate a well-known -- yet often ignored -- precept about customers and how to derive the greatest ROI from marketing dollars: namely, it costs far less to retain existing customers than to market to new ones.
Read on for his take on the subject.
Tell me a little about your background and why you decided to found Retention Science?
Both my co-founder and I had experience selling products online, from video games to comic books to electric violins. We soon saw firsthand the challenge of retaining existing clients, and just as quickly realized that our problem was far from unique. Most businesses were not – and still aren’t – spending enough on customer retention.
This was despite the... Read more