Customer Acquisition is Only Growth Formula in B2B, as per Romaniuk of Ehrenberg Bass

Customer Acquisition is Only Growth Formula in B2B, as per Romaniuk of Ehrenberg Bass

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As per new study conducted in Ehrenberg- Bass Institute for the LinkedIn B2B Institutes, marketing law of double jeopardy is applicable to both B2B and B2C brands.

  • New customer acquisition is more important than customer loyalty
  • Brands with a lower customer base tend to perform lower in loyalty metrics as well
  • As per double jeopardy law, one cannot engineer loyalty

In a recent study conducted by Professor Jenni Romaniuk, Sahar Faghidno, and John Dawes of Ehrenberg-Bass Institute- it is concluded that double jeopardy holds true for, both, B2B brands and B2C brands. Hence, customer acquisition seems to be the only viable growth path for B2B firms. The study was conducted for LinkedIn B2B Institute. 

On the basis of the study, it is highly recommended for B2B companies to focus on capturing more customers rather than strategizing customer retention. Also, the B2B marketers can implement the growth strategy smoothly in their KPI and marketing strategy.

In 1960, the law of double jeopardy stated that loyalty is a fairly predictable element in the market. The loyalty of the brand grows proportionally to the customer base. As a result, it is normal for smaller brands to suffer more when compared to their larger competitors. The loss is attributed to the limited customer database.

In the recent study conducted by Romaniuk- the concept of the law of double jeopardy has been narrowed. As per the new study- “We can’t engineer loyalty, and focusing on loyalty is not the route to sustainable growth. This gives us a clear strategic path of how brands grow that is what its power is”.

Further, Romaniuk illustrated this study with a formal survey on UK-based banks, and the result was tremendous. The higher the customer base, the more is the number of loyal customers.

As per a new study conducted in Ehrenberg- Bass Institute for the LinkedIn B2B Institutes, the marketing law of double jeopardy is applicable to both B2B and B2C brands.

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