Book review : Flip the funnel

Why customer retention is the new acquisition

The old CRM adage that it costs five times more to acquire a new customer than to retain an existing one, combined with newer insights into the dynamics of word of mouth, influence marketing, net promoter score and the acceleration of these trends through digital and social media. These are the business opportunities that Joseph Jaffe, bestselling author, beautifully summarizes in 3 simple words: Flip the Funnel.

Indeed, the traditional marketing funnel focuses on AIDA (acquisition, interest, desire, action)…and then starts all over again with the “A”, as the newly recruited customers simply fall through the open-ended funnel at the bottom.  By starting the other way round, ie, focusing on your loyal customers and then flipping the acquisition funnel, you are creating a multiplier for future business (Jaffe calls this ADIA). He goes on to convincingly prove through numerous examples that the economic impact of an active, engaged and loyal customer is tremendous…and that the same is true of the opposite scenario, ie, the impact of angry customers and negative word-of-mouth or referrals.

In a nutshell, the ADIA approach should deliver more sales at lower costs. A great read, and kudos for the conceptually and mnemonically strong title!

Written by Fonny Schenck

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