Retention marketing is a trending marketing strategy, that focuses on the existing customer base. The goal of retention marketing is to make customers that engaged that they return to you to use your product again and again.
Most of the marketing acts are focused on acquiring more traffic or new users. However, those acquired customers are left alone after they have visited the website or the app, or have signed up for the service. The reality is that the profitability gained from those users you already have is much more than the new ones. So, retention marketing focuses on increasing both their frequency of purchase and the average order volume per purchase. The most popular metric to measure the success of a retention marketing campaign is the retention rate.
In other words, retention marketing are the activities a business does to increase the likelihood of a customer returning to their product or purchasing again, while focusing on increasing the profitability of each repeat purchase. The opposite of retention marketing would be acquisition marketing.
Focus on Retention Marketing
We already mentioned that it is better to invest in making current users stick to your business, rather than desperately trying to acquire new users, constantly. Here’s why we believe so:
- Retention is cheaper than acquisition
To acquire a new customer costs about seven times as retaining current users. Once a lead converts, they know and trust your brand, and they will be more likely to buy from you — if you keep your brand at the top of their minds. Retention activities generally require a small portion of the marketing budget, meaning your return on these activities can be much greater than acquisition activities.
- Loyal customers are willing to spend more money
Boost your ROI!
Loyal customers spend 33% more than new customers, on average. It is also far easier to convince them to buy something from you. Actually, that initial purchase is the ice breaker. So, the next time you want to sell something to them, they’ll be far more likely to say yes. Focusing on binging a good service to this group will increase the return on investments.
- Convenience vs. Brand loyalty
Consumers nowadays prefer buying from brands that give them what they’re looking for when they’re looking for it. If your brand isn’t the one that comes up in their search or isn’t right in front of them when they acknowledge their needs, it’s less likely that they’ll take the time to seek you out again.
Wondering how is this related to retention marketing? With retention marketing, you will be influencing your customers and creating needs before they realize it on their own. You need to keep your brand at top of mind, and this is one of the ways to do it.
Retention Marketing Strategies
Using personalization during different stages users react with your product creates impressive results. Personalization helps with developing deeper relationships with your customers, consequently driving retention to your product. Emotions have the strongest impact on customer loyalty, especially trust. How you treat your customers will directly influence your business. With the rising costs in acquisition channels, you need to make sure you treat those customers well to reap the benefits. The emotional side is what customers or users expect from your brand, and you need to deliver it.
By making things users were interested in their past visits more visible, you are creating an easy trigger for returning customers. These human interactions and personal touches make a customer feel wanted and appreciated.
Become Their Trusted Advisor:
Become your customer’s friend. Advise them on subjects related to the industry you work in. The better you can help them with their problems, the more highly they will think of you and consider your company the best option for future situations when they need something.
Although, it is practically impossible to advise every single user you have when they have a question. We don’t mean you should sit there and immediately answer any emails or phone calls from your customers. There are better and more general solutions to this approach: Create content for your blog and social media accounts that help your customers find answers to their questions. Try to also work on search engine optimization (SEO) of your blog posts, because they might be questions that many people are thinking about and searching for their answers. By finding your blog posts on their search engine results page, they will begin to notice you and your business and become your loyal users.
Give Special Offers:
Offers and discounts can lead to repetitive purchases from your current customers. However, remember to design your discount offers in a way that doesn’t bounce back at your business. You need to stay consistent with the core of your business and your value proposition. Urgency is another component of these deals. They need to know that there is a time or capacity limit and the faster they act (preferably, now!) the better.
Take Advantage of Customer Clubs:
Build your own customer club and make special deals available for your users in the club. Make them feel special and wanted, because these deals are only available to them. Happier and more satisfied customers lead o more revenues for and engagement with your product. You can also give them incentives, such as club credits when they make a purchase from you. This will entice them to become a member of your customer club and stick to your product, because this is a win-win situation.