What Is Retention Marketing?
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.
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