Today we are witnessing the next great disruptive era of innovation as businesses integrate Conversational AI, intent modeling, and autonomous animation to create deeply personal, scalable, emotional and empathetic customer experiences. The new cookieless digital media world changes the focus from the Customer Acquisition Cost (CAC) to building long-term valuable relationships.
For the last 2 decades marketing has been obsessed with the great CAC arms race. The penetration and maturity of digital media gave marketers incredible horsepower for acquiring new customers, with great emphasis on filling the top of the funnel as efficiently as possible, and less thought to retain long-term customer relationships. Now marketers have to come to terms with a more regulated, cookie-less digital environment. Customer acquisition will become harder, less efficient, and more expensive leaving businesses to look elsewhere for creating value for shareholders. The focus will turn to nurturing and creating value out of long-term relationships with customers rather than attritionally filling the funnel. When the KPI of choice was how low was your CAC, now it will be how high is the lifetime value of your customers, and what are you doing to increase the yield.