How Nift Turns A Gift Into New Customers For One Brand And Loyalty For Another
“Brands should always be thinking about ways to show gratitude to their customers,” said Elery Pfeffer, Nift Networks founder and CEO. getty Every retailer wants to turn new customers into loyal ones. Yet when budgets are divvied out, customer acquisition gets the lions share and loyalty is often left underfunded. A recent CMO survey among 300 senior marketing executives found the typical B2C product business spends 34% more on customer acquisition than building deeper relationships with existing ones. And for companies that generate most of their revenues online, acquisition budgets can run up to 50% higher. This imbalance is hard to justify. Numerous studies show that new prospects convert at a rate between 5% to 20%, compared to 60% to 70% for existing customers. That means a dollar invested in customer loyalty and retention is likely to generate four to six times more revenue. “Chasing one‘s tail” is how Bain describes companies that overspend on acquisition at the expense of existing customers. And Bain’s research shows why: increasing retention by only 5% can boost profits by as much as 95%. Nift aims to bridge the gap by using one company‘s acquisition budget to power another’s loyalty program. In effect, Nift‘s model rewards customers of
