3 Types of Effective Retention Marketing Strategies
What is Retention Marketing?
Retention Marketing has been a buzz phrase for quite some time now. A few recognize it by other names such as lifecycle marketing, loyalty marketing, customer happiness marketing and more. At Retention Science, we aim to build engagement and strengthen customer loyalty to a company, its products, and the brand by marketing to existing clients. The concept itself is easy to comprehend but difficult to achieve. Most brands, even ones prominently known today, lack the tools and resources to effectively manage big data.
Why is It Important?
According to Bain and Co, it costs 6-7X more to attract new customers than it does to retain existing ones. Customer churn is critical for businesses and yet, several marketers tend to dismiss customer retention by focusing solely on customer acquisition. Further research entails that a 5% increase in customer retention can generate up to 125% in profits. Such small actions can lead to significant gains. It is important to maintain a strong relationship with returning customers who have demonstrated loyalty to your business.
3 Tips of the Trade
Communicate with tailored content and dynamic offers. A great way to show you care about your customers is to cater to their interests. Either gather a team to create and manage your database, or hire a company specialized in e-mail marketing campaigns. Most retailers utilize their existing newsletter to generate the same generic content fed to their entire customer base. However, what a dynamic offer campaign can do for you is to tailor each individual newsletter with specific offers and incentives priced according to the customer’s affordability and interests. This is done through building a detailed database to collect information on your customers and generate their profiles. This tactic not only attracts the right customer with the right offer, but can also save you resources and costs.
Recommend the product that best suits the customer’s needs. Through analytics and product clicks, you can determine what product specifically will most satisfy your customer. For example, if you’ve recorded and analyzed that Jane has searched “red sandals” and scrolled through all of your products identified as “red sandals,” you might just want to send her an e-mail or newsletter with that specific product matched with a coupon discount or free shipping. Not only will this help entice her into buying a pair of red sandals, but it will also show that you care about its customers. Measure and recognize your customer lifetime value (CLV) by building a long-term relationship with your customers.
Listen and respond to your followers, since they are the ones who truly care about your brand and products. A simple tweet can go a long way. Make your customers feel special by retweeting their enthusiasm for your business or replying to their questions. Build a relationship with the desire to help and not to ignore.