How not to lose 20% of your customers
Here are some jaw-dropping facts. But this doesn’t have to be your outcome. See below on advise for ensuring success and keeping those customers happy!
Acquired brands lose an average of 20% of their customers in Year 1.
Who: Brand Finance Institute – world’s leading brand valuation experts. For example, if Google has a brand that they wanted to divest, they would go them first to figure out the brand “worth” in the marketplace.
What was analyzed: 80% of the total value of public acquisitions in the world above $500m between 2015-2020
Why it is important: Outcomes reported – of those acquired they saw a drop of 20% in customer’s intent to renew.
Source: Brand Finance Institute Webinar - Brand Transition: Do Rebrands Add or Destroy Value After M&A? https://brandfinance.com/events/brand-finance-insititute-webinar-brand-transition-do-rebrands-add-or-destroy-value-after-manda
2. 67% of market survey respondents missed a major sales goal while integrating acquired brands, 45% while rebranding.
Who: Brand Transitions market research conducted March 2024.
What was analyzed: 100+ respondents to a survey that primarily targeted Chief Marketing Officers, Chief Operating Officers, CEOs and investors.
Why it is important: While the brand change was implemented successfully, the outcomes where not always as good as expected.
3. 60% of all deals failed to meet internal expectations.
Who: Bain Research
What was analyzed: Bain’s own surveys of executives
Why it is important: Companies set out to achieve certain goals with their acquisitions and all efforts to integrate should align with these goals to be considered a success.
So if customer churn in your acquired company is likely to rise by 20% within the first 12-24 months of an acquisition what should you do to avoid?
Our C-level customers understand this risk and plan ahead to avoid this situation. Advance strategic planning and hiring brand implementation experts who are ALSO strategic communicators to guide the way leads to: increased revenue, faster go to market delivery and MUCH higher levels of customer retention.
Here are some great articles to get your started on your brand implementation planning journey.