Businesses have traditionally looked at new customer acquisition as the surest way to fuel growth. The ability of martech to gather customer data and uncover new insights into their behaviour has unravelled a whole new world of retention marketing and unlocked customer lifetime value for businesses.
At the recent Martech+ Summit, Rajesh Jain, Founder & MD of Netcore Cloud, presented a thought-provoking address on ‘Changing the Game from Acquisition to Retention – 3 AI Powered Fixes.’ Jain delved into the overlooked yet crucial elements of customer retention and loyalty, shedding light on how artificial intelligence (AI) can help marketers shift their focus from acquisition to building lasting customer relationships.
During his talk, Jain referenced a significant finding from a major e-commerce event in the U.S., noting that 80-90% of marketing budgets are still allocated toward customer acquisition. He described this disproportionate emphasis as a ‘cancer’ that stunts the growth of meaningful customer relationships. Jain’s central message was clear: marketers need to prioritise Customer Lifetime Value (LTV) over Customer Acquisition Cost (CAC).
“Focusing solely on acquisition isn’t just expensive—it’s unsustainable. Businesses need to embrace a mindset shift to truly drive long-term profitability,” said Jain.
To guide this transformation, Jain proposed an ‘anti-acquisition’ mindset, urging marketers to focus on three core areas: smarter data usage, enriched customer experiences, and hyper-personalised marketing strategies. By integrating advanced AI technologies such as predictive AI, generative AI, and agentic AI, businesses can better connect with their customers in meaningful ways.
Jain stated, “Retention isn’t just a marketing problem. It’s a reimagining of how businesses interact with their customers.”
A key area Jain highlighted was the evolving role of communication channels. Once seen as static tools for one-way communication—such as email, WhatsApp, and push notifications—these platforms are now being reshaped into interactive spaces.
Jain remarked, “Today, in-channel conversions are the future. Instead of directing customers to external websites or apps, businesses can now drive seamless interactions within these very channels, reducing friction and enhancing the overall experience.”
Jain introduced the concept of AI as the ‘co-marketer.’ AI-powered assistants collaborate with marketing teams, helping to segment audiences, generate insights, and curate personalised content.
Jain explained, “Imagine having an AI partner that can streamline your processes, making every part of your marketing strategy more efficient. This shift towards automation allows businesses to optimise their marketing efforts, leaving human teams to focus on higher-level strategy and creativity.”
Jain also shared an exciting innovation that’s transforming customer engagement—‘digital twins.’ These virtual representations of customer segments combine data from adtech and martech platforms, enabling businesses to simulate and better understand customer behaviours.
“With AI-driven digital twins, marketers can ask specific questions about their segments, allowing for deeper personalisation,” Jain said.
He added that this collaboration between co-marketers and digital twins represents a monumental leap in understanding and responding to customer needs.
Jain’s insights make it clear: the future of marketing lies not just in attracting new customers, but in deepening relationships with existing ones. By leveraging AI to enhance personalisation and engagement, companies can maximise LTV while minimising CAC. In an increasingly competitive landscape, those who succeed will be the ones who focus on retention and turn every customer interaction into a long-term, value-driven experience.
At the fifth edition of MarTech+ Summit 2024, entrepreneur and investor Sanjeev Bikhchandani, founder and executive vice chairman of InfoEdge addressed the audience on ‘Data-driven decision making: Human insights powered by tech’ in a fireside chat with Puneet Gupt, chief operating officer, Times Internet. The discussion explored the evolution of marketing from traditional methods to AI-driven strategies. The conversation also touched on the importance of transparent data usage, ethical practices, and the value of customer feedback in driving innovation. Bikhchandani emphasised the need for judgment alongside data to create effective marketing strategies.
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