With 2026 budget planning underway, Harvard Business Review data exposes a costly imbalance that finance directors can no longer ignore.
The Harvard Business Review Wake-Up Call
As marketing teams across the UK finalize their 2026 budgets this month, one statistic from Harvard Business Review should stop every finance director in their tracks: acquiring a new customer costs 5-25 times more than retaining an existing one.
Yet despite this verified reality, McKinsey research shows 55% of marketing budgets still go to acquisition while only 12% focuses on retention.
For established brands, this imbalance doesn’t just impact efficiency, it destroys shareholder value at scale.
The Verified ROI Gap
Industry-proven statistics reveal the retention advantage:
- 5% retention increase = 25-95% profit increase (Bain & Company)
- Retained customers spend 140% more over time (verified longitudinal studies)
- Email marketing delivers £35-£44 per £1 spent (DMA Marketer Email Tracker, 2021)
- Large businesses see £44 ROI vs £30 for smaller companies (DMA verified data)
- 80% of consumers participate in loyalty programmes (verified research)
The mathematical reality: If retention delivers 5-25x better ROI than acquisition, why do our budget allocations suggest the opposite priority?
The Post-Purchase Blind Spot
Here’s where most brands are leaving money on the table:
Current State (Industry Average):
- Order confirmations: Higher engagement than standard marketing campaigns, yet treated as operational necessities
- Post-purchase touchpoints: Fragmented across multiple systems without orchestration
- Customer journey: Ends at transaction completion rather than relationship building
The Orchestration Opportunity:
Rather than building new systems, smart brands are orchestrating existing email, SMS, Loyalty, Content and CRM solutions to optimize post-purchase engagement without additional operational complexity.
The September Budget Planning Framework
For brands deep in 2026 budget planning, consider this reallocation strategy:
Current Typical Allocation:
- Acquisition focus: 55% of marketing budget
- Retention focus: 12% of marketing budget
- Result: Ignoring the 5-25x cost differential
Evidence-Based Reallocation:
- Strategic acquisition: Maintain essential new customer acquisition
- Enhanced retention: Redirect portion of acquisition budget toward proven retention channels
- Platform orchestration: Invest in solutions that optimize existing touchpoints
The Compound Effect
The beauty of post-purchase investment lies in its compounding nature. Unlike acquisition spending, which requires constant refueling, improvements to customer experience create lasting value:
- Month 1-3: Immediate improvements in repeat purchase rates and customer satisfaction.
- Month 4-12: Word-of-mouth growth reduces dependence on paid channels.
- Year 2+: Strong customer base enables premium pricing and expansion into new products.
Modern Post-Purchase Strategy
Today’s most successful brands treat post-purchase as a sophisticated marketing channel:
Immediate Post-Purchase (0-24 hours)
- Celebration and validation of purchase decision.
- Care instructions and maximizing product value.
- Social sharing incentives and community integration.
- Clear expectations for delivery and next steps.
Short-term Follow-up (1-30 days)
- Product education and usage optimization.
- Complementary product recommendations.
- Feedback collection and review requests.
- Early indicators of satisfaction issues.
Long-term Relationship Building (30+ days)
- Loyalty program progression and rewards.
- Exclusive access to new products or sales.
- Community events and brand experiences.
- Referral programs and affiliate opportunities.
The Technology Investment
The infrastructure required for sophisticated post-purchase engagement has become remarkably accessible.
Modern Platforms Enable
- Real-time personalization based on purchase behavior
- Automated workflows triggered by customer actions
- Multi-channel coordination across email, SMS, and app notifications
- Detailed analytics and attribution tracking
- A/B testing for continuous optimization
The ROI Logic:
Instead of spending £1 on acquisition with uncertain returns, redirect portions toward retention activities with £35-£44 possible returns per pound invested.
Real September Actions for teams preparing budget request for Finance Directors
Week 1-2: The Honest Audit
1. Calculate your actual acquisition vs retention split across all channels
2. Identify post-purchase engagement gaps in your customer journey
3. Assess how well your existing email/SMS solutions work together
Week 3-4: The Reallocation Strategy
1. Model retention budget scenarios based on verified ROI data
2. Evaluate orchestration platforms that optimize existing investments
3. Plan pilot programmes for Q1 2026 implementation
The Platform Question:
Are you looking for solutions that replace your existing systems, or orchestrate them more effectively for better post-purchase engagement?