this post was submitted on 28 Nov 2024
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Never understood this. Study after study tells us how much more it costs to find a new customer, instead of retaining an existing one.
same with employees
It costs more, but those are indirect costs associated with marketing. Most executives only look at sales and expenses and don't think in indirect costs, regardless of how many business people try to explain. So the costs are marketing, we either cut the costs or we cut the budget, but not change what we are doing. Or they don't care, because of the above collusion mentioned in another comment, or because they want to spend on marketing for their golf buddy, the marketing CEO.
Does it drive me insane, as someone who has a marketing and accounting degree, and had to explain it a bunch of times? Yes. Also most high level executives make up a fantasy version of how the business is being run and feel anyone who doesn't agree is inherently wrong.
This was quite eye-opening for me, when I discovered it.
I've met Chief Information Security Officers who I wouldn't trust to pick my antivirus product.
Profit graph needs to go up or stakeholders get mad.