Retention and Marketing Communication in Asia and Worldover

Emphasize on Communication

Why the companies from Europe, Asia, and other parts lay so much emphasis on marketing communication? Simple, because, communication clarifies, eases and assists in conveying thoughts, gestures, and actions to you and me - the consumers. Acquisition, Expansion, and Retention the three fundamentals of marketing strategy are deployed effectively to generate a healthy ROI and profit as well. The first two is directly related to marketing and sales. The last one- retention, is indirectly related to marketing, and takes the maximum time of strategy making bodies.

Maintaining brand visibility in the market through continuous and sustained effort, by choosing a cross section of customers having similar taste and preferences is what strategists in marketing prefer. Not only it adds value by creating brand loyal customers but also word of mouth, often from such customers helps indirectly to create new customer base. Read more on this…

Marketing communication in Thailand and worldwide, is directly linked to customer retention. While it takes immense convincing power and aggressive sales to acquire and expand into the market, it takes communication skill, unique loyalty schemes, and soft selling aptitude to retain customers.

It is a known fact that 20% of the customers yield 80% of the profit. Hence lay due stress to this 20%, more. Communicate and communicate with your customers, time and again, to keep in touch with them. While communicating, do not try to push your product or service. Click here to learn about a company that uses effective marketing communication strategy to help its client expand and consolidate markets in Thailand.

But why retain, when a company can expand its base aggressively through hard core selling?

To answer this we will discuss a little bit about customer life cycle value. We will discuss how customer life cycle value is directly related to retention. Ultimately we will establish that if we increase customer retention, then a company will get repeated customers, increasing value, and volume of sales. This increase in sales volume is cost effective, since marketing cost to these repeat customers are almost negligible than marketing to new customers. Hence, retention is the best practice. To acquire a good retention rate effective communication in marketing is needed for customers in Thailand and Worldover.

CLV = Net present value of future profit per customer - customer life cycle value

CAV = The net present profit per customer - customer annual value

Let us calculate CLV of a shopping mall. This shopping mall, uses e mails, telephones, faxes and live web support to assist its buyers and offers certain value added services to its members, on product purchase of over 500 unit value.

From the data gathered over a period of a year, first we need to calculate the customer life cycle value. This CLV is actually the value, which a repeat customer generates for the mall, by shopping frequently.

Calculating Customer Life Time Value

  Yr 1 Yr 2
Customers 5000 3750
Retention Rate   70%
Average Basket of Consumption 40 80
Total Sale 200000 300000
Total Cost 150000 130000
Gross Profit 50000  


For year 1 the CLV is = 50,000/5000 = 10 unit

For year 2 the CLV is = 141667.70/3750 = 37.78 unit

Customer annual value will be like this,

For year 1 CAV is = 50,000/5000 = 10 unit and

For year 2 CAV is = 17,000/3750 = 45.33 unit

It is apparent from above after retention, not only the sales volume increased but also customers are repeated. This is only because of effective marketing communication.

Brand equity being directly proportional to relationship equity companies is laying more and more stress on customer loyalty programs. All these programs, uses communication tools that acts as a subtle marketing process, and this is in vogue whether in Thailand or in world.

How to implement marketing communication for retention?

Using processes like personal correspondences, offering special discounts on the product and other value-added products/services, offering value like free of cost allied services, loyalty points, and redemption coupons. Forming membership clubs promoting a social cause. Sponsoring any non-political interest group, forming alliance partners are some of the techniques, which a company uses to retain customers. But all these measures require communication. Verbal and written communication methods, meant for marketing the value added services, appeals all customers, from Asia, Europe, USA etc. Consumer minds are in fact quite similar in some ways the entire world.

The consumers want to be noticed and remembered by a company. So, when you get a birthday wish mail from your favorite eating -joint, wouldn't you be happy? You will. When you receive some discount offer on your credit card for your anniversary, don't you feel excited? You do. This is what marketing communication does for a company, in Thailand and in other parts of the world. That is why, customer relationship management has emerged a single subject for marketers to study and implement its policies.

Effective copy writing in mails, brochures, product portfolio, pleasant and assisting voices over help desk counters, eagerness to help over the phone, live chat as a web help are all but tools of marketing communication. Companies from USA, Asia, and other parts of the world are investing more and more on marketing communication. Thus we see a sudden rise in call centers acting as help desk, live chat and even video conferencing option meant for individual client and for dealers, wholesalers etc The motive remains the same - to be in touch with people and market. Marketing communication in Thailand in particular gained a momentum due to outsourcing boom. Read more on this…

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