Report: In face of recession, 67% of companies skip buyer acquisition, flip to buyer retention

In response to the newest Twilio Phase Progress Report, companies are adapting to the unsure macroeconomic panorama by shifting their priorities from a “progress in any respect prices” mentality to driving long-term buyer loyalty. 67% of entrepreneurs mentioned they’re centered on retaining present clients over buying new ones proper now.

As a result of advertising budgets are sometimes the primary to be minimize when a downturn hits, entrepreneurs are laser-focused on effectivity and profitability. In actual fact, 93% of companies are taking steps to adapt to present macroeconomic circumstances and plan for a recession. The most typical step being taken is to concentrate on buyer retention (43%). As well as, 57% famous that their firms are spending cash on ineffective instruments. So it’s no marvel that 83% of entrepreneurs are planning to consolidate their advertising tech stack inside the subsequent yr. The options that make the minimize would be the ones which might be tried and true. 69% of entrepreneurs are leaning into channels with confirmed ROI.

First-party information for buyer retention

A part of optimizing the advertising tech stack for profitability is benefiting from current buyer information. That is particularly necessary when you think about that 49% of entrepreneurs imagine high quality buyer information is without doubt one of the most important parts for driving progress. To achieve a deeper understanding of their clients and assist their enterprise develop, 71% of companies are working to higher seize and use first-party information. (First-party information is information that comes straight from clients with their consent.)

Entrepreneurs who’re getting forward of Google’s 2024 third-party cookie ban are already reaping the rewards of first-party information. One in three organizations utilizing buyer information platforms (CDPs) to handle first-party information are reporting sooner income progress and two-times increased buyer satisfaction ranges.

Decreasing buyer acquisition prices and growing lifetime buyer worth are the playbook for future-proof advertising. Discovering success by way of this playbook requires the proper expertise and buyer information.

Twilio Phase carried out this analysis by way of a survey developed by Methodology Analysis and distributed by Cint. It surveyed 1,300 advertising and CX leaders from the US and the UK.

Learn the total report from Twilio.