Since the advent of the internet, digital marking has been enhanced immensely. The process is becoming highly efficient – fewer risks, less waste, higher returns….
Retention marketing is nothing new to doing business, however, with a rise in digital marketing businesses are seeing the advantages. They are improving efforts to keeping customers connected via a multitude of channels 24 hours a day. The opportunity grants owners the ability to stay in touch like never before.
It is essential for any business to develop a powerful retention program. The strategy can boost efficiency and return marketing investments quicker.
What Is Retention Marketing?
A common definition is “the activities a business participates in to create repeat customers and boost the profitability of future purchases.”
Yet, while the concept is not complicated, a surprisingly small number of businesses consider it a priority. Nonetheless, the benefits of maintaining a retention program or creating one are highly suggested.
Why Customer Retention Is Vital to Your Success
Customer retention is one area of commerce that needs added resources to pursue a stable retention strategy. Below is a list of reasons businesses should dedicate more time and energy.
Retention costs vs Acquisition costs
A recent study by Bain and Co. shows, “costs seven times as much to acquire a new customer, as keep a vetted customer. Once a lead converts, they know and trust your brand, making the client far more likely to purchase from you in the future. If you maintain the quality of your brand.”
However, retention undertakings generally require a portion of marketing budgets, meaning return on these activities can be much greater than acquisition activities.
Profits increase with repeat customers
On average those loyal customers an average of 33% more than new customers. Because you have built their trust and that goes a long way to influence their buying decisions. Plus, it spreads word of mouth, through reviews and buyer suggestions.
Existing Customers buy more readily
Adobe found it was nine times easier to convert additional sales when someone has already purchased from the business previously. Your new customers shouldn’t disappear into a black hole, never to hear from you again – that initial transaction should be the start of their defined customer journey, complete with strategic touchpoints for success. Engaging current customers positively impacts overall business goals in several ways, including increasing revenue by generating opportunities for sales of additional products and services.
Brand Loyalty is Disappearing
One business strategy that is fading at a rapid pace, brand loyalty. All business is affected by this trend, but with a quality retention program, the issue can be controlled. Consumer attention spans are diminishing, instead, they want to buy from brands that give them the attention and deals to suit their needs.
More business is being conducted on mobile devices, where user sessions last an average of just over a minute. If your brand isn’t the one that comes up in their search or isn’t right in front of them when they develop their need, it’s less likely that they’ll take the time to seek you out again. As competition increases, the challenge will increase. Although, not all hope is lost, instead keep your brand present in front of present customers, while increasing impressions to engage new cliental.
By instilling a retention strategy, it will boost your ROI. Customer acquisition activities have become an essential part of digital marketing. If you consider how ROI increases CLV (customer lifetime value), every new customer you acquire will be far more valuable and, in the long-term, generate a higher return.
If ROI is measured solely based on the cost of acquisition, then the value of their first purchase is like shopping for an item based solely on price. When a business adds CLV to the picture it grants an understanding of the long-term value customers provide, as in shopping for a quality item which provides the most value for the money. By understanding customer genre, it provides the highest long-term ROI, the maintain them as your business expands.
How to develop a quality retention program
What is really needed for a good retention strategy?
- Optimize Retention Marketing Strategy
- Establish Your Brand as the Trusted Advisor
If you can become a trusted one-stop-shopping guide, it opens the door for limitless potential. The better you can communicate solutions to the problems and answers to questions, the higher esteem your business brand will be considered for future purchases.
Tip: The retention-based content should be shared on your blog, social media, and email to help your customers to help solve problems that may come across after purchasing from the company. Showcase ways to improve the use of the product or service, and expand on its options or functionality and upsell them.
Building personal relationships
Get to know your clients. The more personal your relationship, the closer they’ll feel to your brand. It develops inherent loyalty, sure, but it also keeps your brand at top of mind.
Tip: Use personalized social media posts and emails to reach your customers. For example, send birthday acknowledgments, or something special to keep their life important. If you are a small business, take advantage of the strategy, because they won’t get the same service from conglomerates. Use discount codes, or sales to enhance the experience.
Keep conversations new and insightful over the years, with special offers, sneak previews, discounts, and trials that are specifically catered toward their preferences.
Develop Exemplary Customer Service Strategies
One of the major determining factors of whether a customer will return is value, and one of the best ways to provide value is through exceptional customer service. As with some practices are timeless, customer service is one of those things, however, you must keep within new strategies.
Listen to your customers, send out surveys, and ask questions to see how you can improve your business to better suit their needs. You must ensure their issues are always met and handled quickly.
Tip: Use social listening tools to seek out brand mentions online. If a customer has a problem but hasn’t brought it directly to your attention, work to fix it anyway. The surprise may be the best part of your customer’s day and will certainly improve the way they view your company. Plus, you’ll receive the added bonus of their network seeing your exceptional customer service in action.
Furthermore, take note of repeat problems and issues and work to eliminate them rather than running around putting out fires. The more streamlined your processes, the higher your chances of retention.
Shoot for the moon on customer expectations
One highly esteemed tool for retention is curtesy, acknowledging the client and remembering them. Over-delivering is a popular retention marketing tactic, and for good reason. When you exceed customer expectations, their brain forms a highly positive association with your brand. Positive associations mean, customers will be more likely to return.
The idea of branding developed to help businesses work toward appreciating the customers who keep them in business. If can be something as simple as treating customers fairly, or donating a product to charity.
The point is making your brand stand for something, then carry that message to the marketing strategy. People are more likely to support your brand when the business has ethics that they stand behind.
Tip: Include values in acquisition and retention marketing. As an example, if you support clean water programs, show customers how their purchases are supporting people in need. In the case, you support exceptional customer service, create a video about a customer service experience gone right. The action will tie the marketing to their emotions and help customers feel good about supporting your brand. Again, it’s not about sales, it’s about being a valued member of the community.
It’s time to put your efforts to work.
Any quality retention marketing strategy will boost profits and streamline marketing activities. So, take what you have learned and put it to good use. Remember, customer retention is about developing a personal relationship with each and every customer. So, understand your brand identity, and how it can be efficient when communicating with people who do business with you.