Internet & Digital Marketing News

What Is Retention Marketing?

by | Feb 21, 2022 | Blog Page News

Most marketing tactics relate to acquiring new customers. However, you shouldn’t forget about your current ones. Research proves that attracting new customers costs much more than retaining existing ones. Additionally, a 5% increase in customer retention correlates to at least a 25% increase in profits. Thus, retention marketing should be part of your business model.

Retention Marketing: What Is It?

Retention marketing describes initiatives that businesses take to keep customers happy, engaged, and loyal. It’s everything you do to avoid churn. The strategy includes various activities — customer service, communication, upselling/cross-selling, capturing reviews, and more.

So, how can you make sure retention is part of your marketing strategy? We have tips and recommendations up next.

Customer Service Should Be Responsive, Accurate, and Friendly

No matter the type of business you have, customers will contact you if they need help. From repair needs to questions about how to use a product, you’ll need to be ready to support them. To ensure it’s a positive experience, remember these things:

  • Make sure customers know how to contact you by sending post-purchase communications.
  • Respond as quickly as possible to inquiries — within 24 to 48 hours is ideal.
  • Be objective when responding to complaints or negative reviews. Inevitably, this will happen, so it’s best to acknowledge the issue and strive to resolve it.
  • Follow up after you’ve provided service to ensure everything is resolved and offer any additional comments.

Communication with Customers Should Be Consistent and Valuable

Do you communicate with customers after the purchase or service completion? If not, you should make this part of your plan. Sending an email after the exchange can strengthen your relationship with your customer. Here’s how to do it well:

  • Thank them for being a customer.
  • Provide them with any content on how to use or care for a product or anything that might be helpful.
  • Ask them for a review and feedback on the experience.
  • Let them know how to contact you in the future.

Beyond that email, you should continue communication with your customers when you can add value. That could involve emails about new products and services that might interest them. Discounts or specials you are running, such as seasonal sales. Additionally, if you have an email newsletter, you should put them on the distribution list if they opt in to receive communication from your company.

This regular contact shows you care about them after the sale. It could lead to repeat business, as 90% of customers are likely to purchase more than once.

Provide Incentives for Loyalty

Rewarding loyal customers can be critical in retention marketing. There should be exclusivity around these promotions. That makes customers feel special and valued. For example, current customers may always receive a discount on follow-up jobs.

Another way to reward them is with referrals. A customer referring business to you almost always results in a new customer. If you incentivize them to do so, you may see more of these in your business.

Involve Customers in Your Marketing

Reviews are great, but testimonials or case studies are even better. When you have a loyal customer, talk to them about highlighting their experience with you. This could turn into a great video or content piece on your website. It can help you attract new customers and remind your existing ones of the benefits of working with you.

Need Help with Retention Marketing?

Retention marketing is a must-have in a world where competition is fierce and customers are sometimes fickle. By leveraging these tactics, you can keep customers satisfied and loyal. If you’re looking for help to manage this or any aspect of marketing, we can help. Contact us today.

A Guide for Small Business Social Media Marketing

Recent Posts

How to Choose a Good Painting Contractor

When it comes to painting your home, it’s important to choose a good painting contractor. A good painting contractor will be able to provide you with quality workmanship, use the right materials, and finish the job on time and on budget. Here are some tips for...

How to Execute High-Performing Social Media Ads for Lead Conversion

Every business wants to grow. Doing so requires having a small business growth strategy. In it, you’ll define the steps you should take to get the results you want. Every plan will look different, depending on your industry, size, customer base, location, and more. To...

Guiding Your Organization With Data Visualization

As the business landscape has become more interconnected, it has brought with it a plethora of market insights and metrics. As a company develops, it must adapt to modern means of data organization. Data visualization helps you present info in an understandable visual...

What is Content Marketing?

What is Content Marketing? Content marketing is a type of digital marketing that focuses on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and ultimately, to drive profitable customer action....

What is Social Media Marketing and Why is it Important?

What is Social Media Marketing and Why is it Important? In today’s digital age, social media marketing has become an essential part of any business’s marketing strategy. Social media marketing is the process of creating content and engaging with customers on social...

Why do I need a responsive wordpress website?

Creating a responsive website is essential in today's digital age, as more and more users access the internet from their smartphones and tablets. A responsive website automatically adjusts its layout and design to provide an optimal viewing experience on any device....

8 Steps to Create a Powerful Brand for Your Small Business

Your brand is what sets your business apart from the competition and is a key factor in attracting and retaining customers. AQ Marketing shares eight steps you can take to create a powerful brand for your small business. 1. Relate to Your Target Market The first step...

5 Red Flags to Avoid When Hiring a Digital Marketing firm

Hiring a digital marketing firm should be an opportunity to take your brand to the next level. However, you want to be selective on the partner you choose. That means you’ll need to do some due diligence on prospective companies. After all, you’ll be investing in such...

5 Best Practices to Improve Your Digital Marketing Strategy

Small business growth depends on your digital marketing strategy. At its heart are your website and all the tactics you use to drive traffic to it. It encompasses everything in your digital footprint. Whether you’re developing one for the first time or updating yours,...

Subscribe to Our Blog to Receive News and Updates from AQ Marketing.

Like This Article? Let others know!