In a webinar we recorded in Sep 2022, Lior Weizman of SAP.iO met with Kat Wray, Head of Partnerships at Mention Me (an SAP partner), and Nils Siméon, Key Account Executive at SAP Customer Experience, to discuss how brands should better evaluate the value of their customers and how they can even extend it.
It’s not a secret that brands today are facing real challenges with their customer acquisition. The main reasons as of now are:
1. The sunset of third-party data, with Apple iOS updates and recent regulation changes, is causing brands to take a step back in analyzing their acquisition channels.
2. Customer acquisition costs have increased dramatically and are not sustainable. With no or less past data, marketing channels must work a lot harder to get the same results.
3. On the customer side, there is a growing distrust amongst customers on how brands are using their data to target them.
For these main reasons, brands must diversify the acquisition channels they’re using, and prioritized channels that are trusted, authentic and such that capture first party data can used to scale growth. Referral marketing is a great example for such a channel. This is where customers recommend brands to their friends, and when you think about it, it’s the most trusted acquisition channel. According to Mention Me, referral marketing is now a $1 billion market, and will be a $50 billion market by 2040.