Most small businesses spend 60-70% of their marketing budget on acquisition — reaching new people. But the highest ROI comes from marketing to customers who already know you. A loyalty CRM flips this ratio.
The Cost Comparison
| Channel | Cost per Customer Reached | Conversion Rate |
|---|---|---|
| Social media ads (cold) | S$2-5 per click | 1-3% |
| Google Ads | S$3-8 per click | 2-5% |
| Flyer distribution | S$0.10-0.30 per flyer | <1% |
| Loyalty CRM push notification | S$0 | 15-30% |
Why CRM Marketing Wins
- Zero marginal cost — push notifications to existing customers are free
- Pre-qualified audience — they've already visited and spent money
- Personalisation — target by purchase history, frequency, spend level
- Measurable — track redemption rates, not just clicks
The 40% Savings
Merchants who shift 30-40% of their ad budget to CRM-driven retention campaigns typically see equal or better results at 60% of the cost. The savings come from eliminating wasted reach — every notification goes to someone who's already your customer.