Sustainable Growth Is Built on a Balance of Loyalty and Acquisition
AMP.25 shows CMOs are increasingly prioritizing customer loyalty metrics, which echoes past third-party research on the topic. The irony is the very focus meant to drive growth might be the thing holding them back. The IPA databank shows that companies overly focused on loyalty often restrict their growth potential, as existing customers have limited spending capacity and natural churn is inevitable.
The Ehrenberg-Bass Institute's Double Jeopardy Law defines this idea, stating that loyalty is actually a function of penetration, making customer acquisition the only sustainable path to growth. We found this to be particularly evident when examining differences in high-growth versus low-growth companies. AMP.25 also revealed that high-growth companies demonstrate a greater focus on brand perception (43% compared to 22% of low-growth companies), increasing their marketing budgets (48%), and expanding agency partnerships (41% vs. 30%). This balanced approach proves more effective than focusing on a single strategy.
At April Six, we believe forward-thinking CMOs should seek ways to excel at both loyalty and acquisition through cohesive brand building and activation efforts. Long-term customer relationships will naturally develop when companies first build strong, emotionally resonant brands and deliver superior experiences. This can be achieved through strategic content marketing that provides genuine value, relevant and distinct communications, and seamless customer experiences that reinforce the brand promise at every touchpoint. The key to sustainable growth lies not in choosing between loyalty and acquisition, but in creating a brand ecosystem that naturally facilitates both.
“Companies overly focused on loyalty often restrict their growth potential.”
